Building Equity

[Jamie McKenna]

Hello All!

Two part question here...I'm looking at purchasing a 4 unit building that is assessed at 150,000 and is listed at 125,000.  The assessment is from 2012.  Does that mean if I purchase it for 125,000, will I automatically have 25,000 in equity?  Or do they re-assess it upon purchase?

Second part...The building has the potential to add 3 more units.  If I do this at a total cost of 75,000, my all-in cost would be 200,000.  How would I pull equity out of it?  How does the bank value multi-unit properties?  Off of the cashflow?  Thank you!