South Bronx New Construction Multifamily

[Christopher Persaud]

Hi,

I just put under contract a property in the Bronx, near St. Barnabas Hospital. House is on a 25x100 land and according to architects, I can build up to 8 units, all 1 bedroom. Now I just want to make sure the math is correct, since this is my first new construction multifamily:

Assuming $1200 monthly for 1 bedroom

8 units x $1200 monthly = $9600

$9600 x 12 months = $115200

Assuming a cap rate of 6% = $1.92mil

Would it be safe to say that would be the market value when completed? 

If you are familiar with the area, what are your thoughts/opinions on the area?