Figuring out Refi value for small multifamily 2-5 units

[David Algarin]

I am looking at investing in small multifamily in Westchester, NY. Specifically Yonkers.

I've found a few properties that could work as a BRRR but I am confused as to how to estimate ARV for a refi. The comps in the area are very inconsistent and I'm wondering how people are calculating accuratly what their ARV will be for the refi.

THANK!

[David Lilley]

Value for properties with 5 or more units will be determined by the net income and capitalization rate. Caps rates will vary by submarket, asset class, and stabilized versus value-add asset.

Value for properties under 5 units will be determined by the comps. As you said, this can be difficult to estimate. I would cultivate your relationship with the lender you plan to do business with. Tell them your plan for the property and find out what ARV they would estimate.