MFR valuation & financing Qs

[Pete M.]

All,

Looking at my first foray into commercial multifamily (previously done SFR & small multi BRRRRs). We've looking to essentially do the same (BRRRR), just on a bigger scale. How are you structuring your financing to do initial purchase plus rehab? I have hard money lenders who will loan for purchase + rehab, but rates are high enough that they'd basically be a non-starter for a 12-18 mo repositioning. Cheaper rates can be had through conventional loans, but those won't fund rehab, and many lenders won't do second position loans. Should I just look for a local lender who will do purchase + rehab in one, or what am I missing?

On valuation, how would you assume valuation is done for an 8-unit that's comprised of two duplexes and a quad on a single parcel? Strictly based on income-approach (NOI divided by cap, minus major deferred items), or are comps also looked at?

What's your rule of thumb methodology for a quick valuation?  I've heard take annualized rent, subtract 50% for expenses and vacancy, and then divide by going cap rate.  Obviously this would be a quick-and-dirty estimation, not to be confused with gathering the T-12s to establish a true as-is.

Thanks.