Mixed use multi in Lowell, MA - not sure how to caclculate ARV

[Sebastien Grebonval]

Hello, I have a potential deal in downtowb Lowell, MA for a mixed used building (1 office space on 1sr floor rented for 950, 1 apartment on second floor, gutted. I estimated the rehab cost to 65k to turn the apartment into a 1200 sq ft 3 bed 1 bath apartment that should rent for about 1550. I am not sure how to calculate the ARV for the building once it is renovated and performing. I cannot really find comps for it and I am not sure what cap rate to use in This area for a mixed use building. Does anyvody know What method should I use and whether an appraiser could help me with that? Thanks for your help! Sébastien.

[Matt Lefebvre]

@Dan Handford is right... if you don't know where to look for comps for mixed use properties then you should probably call up a broker that can help you. For example, its not as simple as looking up on Zillow for a property with an office + residential usage... you have to look at comp sales that may be on the local MLS, the local CIE, or one of the big sites like CoStar/Loopnet. Not all of that information is readily accessible and might take some digging. Take a look at some recent sales/leasing of small office buildings in the Lowell area and give a few brokers a call to see if any of them can give you a better idea of value on the property and then gauge the local rental market on Craigslist to ensure your numbers make sense.