Nervous about the Refinance step of BRRRR

[Levi Benton]

Hello everyone! 

I am looking to pull the trigger on my first deal which I plan to BRRR but I am scared about the refinance. It is a duplex in downtown Cincinnati ($60K Asking / $30K Rehab). My comps are a bit weird and they are freaking me out and making me hesitate. I am trying to pull an ARV but the only evidence I can pull in the small pocket of downtown is a home selling 2 doors down for $165K. Nothing else has sold in the 2 block area but around the corner homes are being turned at $500K. Also a few other properties in the area are listed but low activity. Not looking to sell, just refinance and hold.

Should I bail because the activity? 

Can I guarantee my refinance value with my lender before the offer? 

Is it good to be the first in an area that is in the middle of a community (Cincinnati OTR) turning around with high rents. 

[Matt P.]

@Levi Benton if the expensive comps you mention are duplexes you should be ok. If they are single family the appraiser will not be able to use them in my experience. What I have had happen is they go back longer than 6 months or expand their search area slightly to find comps. Could hurt you could help you. My experience has been with going through a few BRRRR on small multi families here in Ohio. Good luck.