Cap Rate Conundrum

I'm diving into a small multifamily acquisition and I want to get your take on a crucial aspect: the cap rate we paid versus the potential for valuue-add. We're looking at in-place rents that are about 20% below market, with a clear path to increase them through renovations and better management. The question is, how much weight should we give to the in-place versus pro-forma rents when evaluating the deal? Should we prioritize the immediate cash flow or the poetntial for long-term appreciation? What are your strategies for balancing these factors, especially when the pro-forma numbers look enticing but the in-place cash flow is less impressive? Are there any specific value-add plans that you've found particularly effective in boosting NOI and ultimately, the resale value?