Forced Appreciation & Refinance

[Brandy Noonan]

I recently acquired a vacant 6 unit building in a very good area (definitely A class) using private money from my investor.

I cater to a specific niche market of renters that allows me to charge considerably (~15%) more than market rent for my units. My plan is to lease up this property and keep it full for the next 18 months and refinance to cash my investor out.

I know that multi-family properties are typically valued based upon their NOI so my questions is this: Will a lender give me full credit for the higher than market rents I'm able to generate (and demonstrate documented proof of) due to my unique business model or will they only credit me what market rates would be?

I will be leasing the property beginning January 4th and plan on recording all checks, leases, expenses etc. and keeping meticulous records in preparation for the refinance. I just don't want to get a year in and find out that banks will only credit me for "market" rents when I've demonstrated I get more than that for my property.

Thanks for any and all feedback!

Brandy