Appraisal of a commercial apartment complex

[David S.]

Hello.

I’m planning to spend $400k in cost to turn a building I purchased into a nice conforming 6 unit apartment complex, with standard looking layouts and individual water meters, sprinkler system,  ect. I project they will rent for $1650 each to nurses and researchers at a nearby university.

i will need to cash out refinance it within a month of its completion.

If I have it rented out fully for $9900 a month ($118800 a year), what’s (1) a reasonable appraisal value I can expect for a cash out refi? (2)  Would appraisal valuation be entirely based on income? (3) If so what kind of cap rate can I expect for this type of building to be used for the appraisal valuation ? Thank you.