How to Determine ARV for the Rental Calculator?

[Ben Ballinger]

I have read through all the ARV articles but they seem geared towards single family homes. How do you estimate ARV for a multifamily? From what I understand, rental property values are more based on the cash flow than "comps", thus, does the ARV even matter? Is there some multiplier I can use based on NOI to determine ARV quickly?

[Danielle Fattizzi]

I typically use ARV = pro forma NOI/market cap rate.

Be careful with this as there are many factors affecting this number. Be diligent in trying to achieve "as accurate a pro forma NOI as possible" (if you will) and make sure you procure your market cap from a viable source.

Hopefully that's what you were looking for!