Refinancing/appraisal for a 7 unit zoned as a 4 unit.

[David S.]

Hello.

In order for an apartment I purchased to appraise for enough money to pay back my loan, I need the appraisal to come back for a 7 unit using the income I make off the property as a basis of appraisal. 


It’s zoned as a 4 unit, which makes it a residential property and subject to appraisal using comps (not income as you would with a commercial property).


I’ve heard I need to be appraised as a “non confirming” 7 unit, and I’ll need something from the city called a “rebuild letter”. Do I need this to get the max appraisal, or is it unnecessary? Is this hard to acquire? Any advice? Thanks.

[Russell Brazil]

1st main question....is the 7 units legal or illegal? If its legal, you got no problem. If its illegal, its not getting refinanced at all til the number of units is brought into compliance with what it legally is.