Subject 2 question

[Daniel Dunn]

Good morning ,

while looking around at properties this morning I saw one that may have the potential to be converted into a duplex, initially looking into it of course I would push for an FHA loan , but thinking about it more - if I went in and tried to do a subject 2 loan providing that once x,y,z is completed it would appraise for a higher value then listing price

My question would be

if the home is currently listed at 270k , and then appraised based on whatever changes are done , then would appraise for more than. Asking (in this example just say 350k) then 80% of that would be $280,0000.

My question is, if I’m going through that process then wouldn’t that also affect the asking Price to match the new appraisal?

Any knowledge shared is more than  I already had

thank you!