Determining Value of Triplex

[Payton Ball]

This would be my first rental property that I would look to househack.  I figure the best way to determine would be using the cap method... but I'm not sure

Here's the rundown: Each unit would rent for somewhere between 950-1100 a month (after renovation). Making the NOI about 24k (rough estimate, and correct me if I'm wrong). There are a couple duplexes in the area, and 3BR 2BA newly renovated homes are selling 250-300k. Homes the same size that aren't renovated going for between 160-190k, with a handful in-between. I feel the ARV would be over 300k in this case, but if I use a cap rate of 10%, would put a value at 240k, which would make this deal a no-go.

Any advise would be helpful.  Time is of the essence.  

Thank you!

[Jonathan Greene]

You don't use cap rate for properties with four or fewer units. It's not the same metric. Cap rate is generally for commercial properties (5 units or more) and the more units, the more accurate the cap when the figures are correct. Four units and under are valued via comparable sales for your ARV while taking rent roll and the calculator figures into consideration. But, you evaluate a three-family as you would a single-family in terms of sellable value or ARV because that is what appraisers will be looking at. SF homes are irrelevant to your multi unless they are on the same block, but then only comparable to assess block value not actual value. You don't have to feel the ARV is anything, you just need your realtor to run the comps. You need to let us know the purchase price and current rents, not expected rents for us to help you even more.