Need Advice on Appraisal portion of BRRRR

[Derrick E.]

I have been paying cash for homes but just took out a HELOC to start utilizing the BRRRR method. This is my first attempt and I could really use some advice. I am worried about over rehabbing and then also worried about not doing it good enough if that makes sense.

Some of the questions I have are in terms of making sure the house appraises for what it should.

#1. Will ceramic tile floors in kitchen and bathrooms appraise for more than luxury vinyl floors? 

#2. The roof is older and will need a new roof in next few years, should I just go ahead and put on a new roof now? Will the new roof boost my appraisal enough to make it worth it?

#3. How much does new landscaping truly help the appraisal?

#4. Is the "Just Sold" feature on Trulia a decent starting point for finding comps?

I have searched and read up on this stuff but would like to hear from the experts here at BP.

[James Palassis]

For the flooring, big suggestion to find out what is customary in the area. If every other house has tile, I’d recommend tile.

For landscaping, I think that is an area that will give you the best bang for the buck. Anything that has a striking visual impact is going to help not only with your appraisal, but also marketing your property, whether to rent or sell. It is also something you can put”sweat equity in that doesn’t take a specialized skill (like electrical or plumbing).

I would try to find an agent that might do one off competitive market analysis. That will give you much more reliable intel on what your house will appraise for. Go to a local REIA meeting, you’ll find good agents there that are familiar with what you are trying to do.