Valuing 4 Plex Renovation

[Sam Bisignano]

Hey! I’m looking into a 4 plex for my first investment property - planning to do some renovation (appliances, in home tech, storage, etc) to raise the rent over time. 

However, I'm having trouble determining the value after renovation. I know 4 units and below are considered residential property so nearby comps usually determine the value but some still say the NOI divided by the Cap Rate = Property Value. When I check property values online this proves true.

It’s hard to believe if enough renovations were in place to raise the rents $200/unit at a Cap Rate of 6%-6.5% that I wouldn’t be able to see a property value increase of around $150,000. 

I’m only 22 and very new to investing so hopefully you all can help me understand this better. If raising rents in a 4 unit does actually increase property value significantly then I would be doing mid-high level renovations (flooring, cabinets, etc.).