ARV of Rehabbed Apartment building

Anybody know what the ARV would be on a 14,467 sf restored apartment building in NC with potential for 12- 2bd/2bath apartments nr university to use for student housing? Existing gutted block/brick building "as is" tax value $250K. with land value at $176K.
In Market Conditions - Asked by Jack H. - Jun 28, 2010
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Mark A.
Chula Vista, CA

Using the income approach, follow these steps.
1. Research and take market rents/month (Craiglist is a good start to find competitive rents for 2/2 rooms) and determine your monthly rents.
Now, multiply your total (all units) monthly rents *12 (months) to determine your gross monthly rents.
Then, estimate your yearly expenses. (General rule of thumb with apartments is expenses should be 35% -40% of your gross rents)
2. Subtract your total expenses from your income to determine Net Operating Income.
3. Divide your Net Operating Income by a cap rate to determine your After Repaired Value. (You can call broker to determine the market caps in your area)

Feb 10, 2011
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