How does a bank calculate cap rate? Will I have instant equity?

[Rachel Luoto]

HI BP! Does anyone know how a bank's appraiser concludes cap rate in deciding property valuation? My NOI/purchase price puts cap rate at double(!) the market cap. Will a bank use the lower market cap rate to appraise, giving me a large portion of equity? I like to use equity for HELOC/cross collateral to buy more properties, this deal already has nice cash flow but the equity would be a big win to drive business forward! Cap rate is tricky, people's advice is just to get broker's opinions, which seems like shaky ground for making big investments, if anyone has a better resource I'd appreciate it!