How to Value a Multi Under Construction & Vacant

[Dulce Beltran]

I came across a 14 unit Multi completely under rehab and for sale at $2.4M. Current investor replaced sewer line, plumbing, electrical, added HVAC (had wall units), new siding, a few units have insulation, others down to studs. 8, 1 bed, rent $950-$1100 (depending on finishes), and 6, 2 bed, rent $1450. Property in A/B neighborhood. States still needs $175K-200K to complete project. Cap Rate 6%-7%.

My question is how does one value the property if there is no current income? Is this a cost to build analysis?