Banks Appraisal of a Multi Family Investment Property

[Rami Jabour]

I am in the process of renovating a 4 flat in an effort to add value (reposition) the property. Once the renovation is complete and other management changes are made to increase the revenue and decrease expenses, I would like to refinance the property in order to increase my equity position in the property (increase the value/maintain loan amount). When the banks appraise the property, are they going to strictly use the cap rate method of valuation or will they use a combination of methods such as comparables and cap rate, or some other method? Thanks for the help.