3 unit MF appraisal. 3 buildings on one plot as a single property

[Mark Whittaker]

I am looking at purchasing a 3 unit multifamily deal. it is 3 separate 1100 sqf single family 2/1 houses on one plot of land. sold as a single entity. one of the buildings is damaged and condemned but fixable. My plan is to purchase the triplex and rent out units 1 and 2 while fixing unit 3. After all 3 units are renovated to top condition I would like to do a cash out refi.

my question is... how will the bank determine the value of the property? would it take the rent revenue and multiply it by 10 or would it simply take comps? I suppose understanding this is a key factor in me moving forward on the property. I truly need to understand the ARV but since it is a 3 unit multifamily property I dont understand how to predict that.thanks in advance for any advice