ARV help for 4 unit in transitioning neighborhood in Phoenix

[Brad Gilboe]

I am in the process of purchasing two 4 unit buildings in Phoenix AZ. Each of these are below market rents, but also in a part of town that is slowly trending in the right direction and is currently a C+ neighborhood. This would be my first official multi unit BRRRR and im looking for clarity on how to determine the ARV. My property manager is guiding me to a rent that will be higher than the average for the neighborhood, but will be a newly renovated building. The lender I have been speaking to is unclear what the criteria are to determine the ARV, and therefore allow me to forecast what 70% cash out looks like.

Is the ARV on 4 unit residential multi based on the NOI divided into the cap rate? or is based on price per door? or what other things should i consider?

Additionally, anyone have a recommendation for a great lender in Arizona?  i have a separate 10 unit currently being renovated that I will refi as well.  I'm not sure if it's possible to refinance all 3 properties into one portfolio loan or not, or if that's even a good idea.  Any guidance is appreciated.  THANKS

[Brian Garrett]

4 unit is residential and valued based on comps just like a single family.

5+ units is commercial and valued based on NOI and market cap rate.