Value Add Multifamily

[Gaurav Bhasin]

Hello, I have a basic question. I am looking at a property that's 12 units for $360 k. Current rent is $4800 a month, taxes are $6200 a year and insurance is approx $6k a year. Owner pays utilities which is approx $1k a month. How do calculate current cap rate? NOI includes mortgage or only non mortgage expenses.

Additionally I believe I can get the rents up to $8k a month. How would I calculate the value of the property after the value add? Would a commercial lender use the NOI to give me a loan after a year?

Trying to see if I can use BRRR here before I jump in. Looking at hard money for deal. It's in Texas.

Any help to a first time apartment buyer is appreciated.