BRRR on 5 or 6 Unit Reliably?

[Scott Kimberly]

I have been doing some light digging and wondering about this question:

Is it possible to "know" (or have a reasonably good idea) of exactly what you could get at the end of a BRRRR for a 5-6 unit property?

I know that on 1-4, you can study comps and ARVs and have a fairly good idea, but you're still more vulnerable to market conditions (i think).

5 or 6 units could be priced similarly, but if you increase NOI, you should be able to increase the appraised value, thus having better chances of a successful BRRRR. Successful BRRRR being one you can pull all your money back out of.

[Brian Garrett]

Yes you simply need to calculate or estimate as accurately as possible what the NOI will be and divide that by the market cap rate. This will give you a pretty good idea of the buildings future value once stabilized.