Appraising a 4-Plex House Hack

[Jack Browning]

Hello All,

Last fall I took the plunge and purchased a 4-unit Multifamily in New Rochelle, NY. I was able to get a very competitive price from the seller, who had been promoted at work, and no longer had time to manage the property. The home was purchased with an FHA loan, so I put down 3.5% and acquired the home for $725k. After the appraisal, I found that the home was over 1,000 square feet larger than what the county records listed it as, so on a price per square foot basis, it was significantly undervalued.

It is has 3, 3 bedroom units I rent out, and a 1 bedroom that I live in. The gross income should I rent out my unit would be about $9k per month. But as it stands, I'm cash flow positive while living in it!

My question to the community - I want to refinance into a conventional Loan ASAP vs. making ongoing Mortgage Insurance payments. There are a number of multi-family properties that have listed/sold nearby that are $100-150k higher than my purchase price. These are smaller properties, with less income. 

Do I stand a chance of re-appraising significantly higher simply on comparables? I've done cosmetic upgrades, but nothing significant in terms of renovations. Curious what my chances are of appraising $150k higher just due to recent sales in my area, without altering the structure.

Any insight or advice welcome!