Does increasing the NOI on my small-multifamily increase value?

[Landon Fillmore]

I understand that a huge advantage of multifamily properties (meaning 5-unit and up, commercial apartments, etc.) is that as you increase the revenue and net operating income, you subsequently increase the property’s value.

BUT, my question is about 4-unit properties and below. I own a 4-plex that I bought in September of 2021. Each 3 bedroom unit was rented for roughly $1500 each (so about $6000 gross rental income/month)… I knew this was under market rates for my area, and over the next year or so and with a few tenant turn overs, I now have a gross monthly rental income of $7200. I can increase that to $7500 soon after one more unit is brought up to market.

So, my question is, have I actually increased the value? Will I be able to potentially sell it for more, simply because I’ve made it more profitable? Or is small multi family strictly based on comps during the appraisal process, and other local market variables?