Strange situation - please help me figure it out

[Brian VanSickle]

Hello all!

6 months ago I partnered up with another investor.

I am going to transfer ownership of a 4 plex into the LLC. I picked up this building long before our partnership. I have had it on the back burner and haven't done anything with it, its just sitting there collecting dust. We plan on making some big changes to it in order to maximize the rent and bring in a higher end tenant.

My issue is how do I value this building so that it is fair to both me and my partner? I could easily sell it as is for 60K. At a 60K price and 20K in updating it would have great numbers on it.

I know if we were to evaluate this deal together, we would be all over it at a 60K price. I don't feel its right to charge that much to our partnership but I also don't feel right handing it over for what I have in it.

On the flip side if I would have sold it 6 months ago and put the 60K in cash into the business, there would be no discussion of the moneys value.  

I'm confused as to what method of valuation is fair in this situation. I don't want either of us to have bad feelings over this transaction.

Any suggestions?