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Updated about 5 years ago on . Most recent reply
How Soon After Rental Purchase Can I Reappraise? (Canada)
Just closed on my first rental property in Alberta and got a pretty good deal on a foreclosure - all is looking good so far!
Along with the sale I applied and got accepted to open up an equity-secured LOC. I'm planning on using this LOC to finance down payments for future rentals. Unfortunately, they appraised the home with the sale and it came at exactly what our purchase price was, so the LOC won't be worth anything right away. Judging by comps on the area I bought in, it SHOULD appraise for $140 - $150,000 after everything is fixed up.
My question is, how long should I wait to get it re-appraised? I'm thinking May once all the fixes have been completed but should I wait longer? Do banks typically appraise higher if someone is living in the home? I sent an email out to my bank but any advice is appreciated.
Most Popular Reply
Originally posted by @Colton Potter:
Just closed on my first rental property in Alberta and got a pretty good deal on a foreclosure - all is looking good so far!
Along with the sale I applied and got accepted to open up an equity-secured LOC. I'm planning on using this LOC to finance down payments for future rentals. Unfortunately, they appraised the home with the sale and it came at exactly what our purchase price was, so the LOC won't be worth anything right away. Judging by comps on the area I bought in, it SHOULD appraise for $140 - $150,000 after everything is fixed up.
My question is, how long should I wait to get it re-appraised? I'm thinking May once all the fixes have been completed but should I wait longer? Do banks typically appraise higher if someone is living in the home? I sent an email out to my bank but any advice is appreciated.
House will be valued higher after renovations so you should appraise after completion. If you thinking to refinance it as a rental then its better for it to be occupied with a lease so the rental income can service the debt and free you to purchase another property with a mortgage
Good luck