Is BRRRR risky with duplexs?

[Dori Arazi]

I'm working on BRRRR deals in Fort Worth, TX.

Renovating distressed SFRs into duplexs (in zones that allow it). These areas are still vastly SFR. From what I'm seeing it looks like a duplex is generally valued lower than a SFR. Sometimes dramatically so. Though I can't get exact comps of the areas I'm looking at.

Is this something I should be worried about when getting to the Refinance "R" in the system?

The rental income is obviously better and with more risk mitigation on the duplex side. 

Does anyone have experience with this?

Thanks!

[Lee Ripma]

@Dori Arazi

Are you going to refi with a conventional lender or a Commerical lender? A Commerical lender tends to favor the income approach over the Comp approach. So if a duplex is lower value based on comps but worth more or equal based on income might work out. I will only tell you that I had a terrible time doing BRRRR and refi with conventional lenders. Once I switched to refi with Commerical it worked.