ARV on Completely Renovated Fourplex

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Hi BP!

I recently purchased a fourplex to house hack and found one in a great location in Miami with a value-add component (rents significantly under market). I closed on the fourplex and as soon as I lifted the tile to begin renovations I discovered the wood trusses and sub-floors are shot and needs complete replacing due to past termite activity and leaks (it's a 100 year old building!). Long story short, I'm significantly over budget for the rehab since I am completely gutting the fourplex (new structure, electrical, plumbing, HVAC, etc). Talk about a first rehab experience. I've held onto the deal because I strongly believe the location is in the path of progress and at the end of the day, it will cashflow. 

I am currently heavily considering refinancing into Fannie Mae Homestyle Renovation loan to help finance most of the renovations needed. I understand this is a fantastic product that helps me hit my exit strategy before renovations begin! The reasoning for this is that refinancing is based on ARV and up to 75% LTV. Exactly what I am trying to hit with my refinance after the renovation. Please correct me if I am mistaken!

However, the challenge with this loan (and any other exit) is the ARV. How can I accurately calculate the ARV on a completely remodeled fourplex when no remodeled comp in the area has sold? I am confident of the value of the remodeled fourplex based on the income approach and market cap rate. However, as this is 4 units ARV is based on comps.

Here are some of my ARV considerations:

• - How significant is a jump from C3 to C2 condition in the appraisal value? 
• - I currently have the time and opportunity to add an extra bedroom into each unit as they are quite spacious (ca. 1100 sqft and they are all 2/1s). Is this a no brainer?
• - Can two duplexes be used for comps?

Here are some general information on the deal:

• Purchase: 620k
• Renovation: 230k
• ARV: 1.1M
• Refi: 75% LTV

Looking for any help from other investors, agents, appraisers, lenders familiar with the Miami market (33135) that can give me better direction to accurately calculate ARV.