New investment property appraisal issues

[Cody M.]

Hello all, 

I had an appraisal this week that came back with less then favorable results. It's in a really growing desired KC metro area so I feel in the future appreciation will be great for the property. I have found this deal locally and off market. It is a smaller home (1 bed 1 bath <700 sq feet) On the same note we received the following message from appraisal team: 

"The Inspection for this property was completed today. The subject contains 0 bedrooms above grade which will affect the marketability and resale. The home does not conform to Freddie Fannie guidelines. This is a studio home and there are no other similar sales or studio homes. There are no one bedrooms similar to the subject."

As they mentioned there is no TRUE one bedroom on the property. (Older home build in the 1900's). Im also afraid this will lead to us not having the ability to finance the property as I wished so will need to pursue a hard money loan or pay all cash for the property. This is still a possibility but would like to get anybody professional opinion on the subject. Closing is not for another couple weeks so still have time to come up with a game plan. 

Thank you for everything

Cody 

[Jake Andronico]

@Cody M.

I'm sorry to hear that. To avoid situations like this we ALWAYS check the assessor site before having any of our clients purchase a property. 

We've seen a lot of mistakes in MLS and from sellers off market. What the assessor says goes.

Are you familiar with the assessor website in your area? It will show the actual sq. footage, beds/bath, if additions were permitted, etc. 

I wish you the best of luck.