Because of what we know the property appraised for in 2004 we assume the property would be in the $400k range just because of appreciation.I have been in communication with two banks regarding financing and they only want to lend based on the cash flow of the building, and based on the 400k expected value the 20k NOI is very light to support that.This brings me to my question, how should we value this property?

All the lighting fixtures were either thoroughly cleaned or replaced.All cabinets were washed inside and out with TSP and the exteriors painted.Shelving was removed, cleaned, painted and reinstalled.The HVAC system was replaced (because it didn't work), we did not replace the ducting and it seemed ok.Overall, it came out well and the smoke smell went away.This house took a lot of elbow grease but it cash flows well.

I would try and pull an outlet or a light swithc off and see what the paneling is attacehd to. 

But recessed lighting, switching outlets out, drywall repair, etc is a fairly inexpensive way to start getting some hands on experience.

@Spencer Hoogveld you are really light on expenses as is indicated by the second page-50% rule.

I have a 12 unit; as people have moved out we refurbished the apartments very lightly: new flooring, paint, caulking and fixing a few tiles etc.

I've dug through the forums and seen only a few light discussions on this issue, which confuses me a bit.I've read a lot about BRRRR, and everybody talks about buying/rehabbing with hard money and refinancing in a conventional loan.

I hope someone can really put some light into what the people who are landlords and in the business of rental property really do. 

Lighting is best done by an electrician. 

All of the light-colored paint got dumped in one big barrel and all of the dark-colored paint got dumped in another.