Multi-Family Improvement Question

[Gaurav Bhasin]

Dear BiggerPockets members, 

I am currently in the process of purchasing a 12-unit Multifamily property in Killeen, TX. The current rents are $395 per unit (2/1) which comes out to $4800 a month or $57600. The expenses for the property are currently $54000. I'm purchasing the property for $325,000 with 20% down and remaining from hard money lender. I'm willing to jump in during my first year of investing. 

So the current cap rate would be:

$57,600 - $54,000/$325,000 = 1% Cap Rate

Now I looked at the expenses and I believe the property management company isn't doing a great job. I view this as a value add property and hope to be able to do the BRRRR strategy. I also have another property close to this one that is renting for $650 for (2/1). I am hoping that at the very least I increase the rents to $600 and decrease the expenses to Tax/Insurance and misc repairs. I ran the numbers using the Bigger Pockets calculator and going through the wholesaler (fees) and hard money lender (fees), I still could be at a 12% Cash on Cash ROI with increase of rent and decreasing expenses. I do plan on making one time improvements to all the properties. The problem I am having is figuring out what the new value would be since its a commercial property. Lets take for example I do get it to $600 a unit or $7200 a month or $86400 for the year. Lets assume I get the expenses down to $30 K. How could I guesstimate the new value? I am looking to go back to a lender after 1 year. So my equation has the new NOI which is $86400 - $30,000 = $56400, but not sure about the value and cap rate in this equation.

Hope it makes sense.

Thanks,
Gaurav