Multi-family ARV calculation for BRRRR

[Carter Still]

I’m just getting my feet wet in multi-family and Value-add projects. Currently looking at numbers on two duplexes, and would love it if I could pull off the BRRRR, but don’t know how to assess ARV on multi-family. I believe it’s typically based off of income/rents, but my lender says that since these duplexes are vacant we can’t speculate what the rents will be. Therefore he would use past sales of other multi-family as comps. Past sales are pre-renovation prices, and none have popped up as flips since the investors hold them. So no past sale will provide a usable comp to substantiate the ARV. Numbers for 1 of these identical duplexes are below: $180,000 purchase (2580sf) $75,000 renovation $2800/month gross rents SF homes sell for up to $160/SF in this neighborhood The income approach would be... (2800*12*.75)/.08 = $315,000 (if I understand typical calculation correctly) Lender will do 80% LTV with 12 months seasoning. Thank you in advance for any information you can share!