Determining Value on a medium to large apartment complexes?

[Todd R.]

Ok, I have a quick question for the experienced and advanced medium to large apartment complex investors(75-200units) I know value is really determined by Actual NOI and Cap rate, but what happens when you run into a big value add with it being 60-70% occupied and there is negative cashflow?? I was looking at the NOI of a few value adds and i see one that had -$2,000 NOI and one that was $5300 NOI for the current numbers.... how can you determine value on something like that? thanks ahead for the lesson!