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Updated almost 6 years ago on . Most recent reply

User Stats

601
Posts
384
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Ronald Starusnak
  • Property Manager
  • Syracuse, NY
384
Votes |
601
Posts

BRRRR Refinancing Horrors?

Ronald Starusnak
  • Property Manager
  • Syracuse, NY
Posted

Hey guys, we're moving forward with acquisition of some properties up here in Central New York. I am hunting a very specific niche market where we're not expecting appreciation, and we're not looking to make a lot of equity of the refi. We're BRRRRing all of these properties and I'm okay with leaving a few G's in each one but I'd like to hear what you guys have encountered when you've refinanced your properties.

I anticipate potentially having to push back on some appraisals considering the properties we're buying. We've done all of our due diligence apart from hiring an appraiser for each property before we close. Some properties we know we have huge margins but others we might get stuck with $4-8k in the deal. Is there any better way to make it less of a guess? Is there any data or information we do not have access to that the appraiser will be using in their assessment? I know if we're truly worried about leaving money in the deal then we should be buying with more conservative margins, I'm not worried about leaving cash in I just want to be more accurate. 

My realtor suggested the appraiser sometimes looks at what you're requesting on the refi from the bank and pretty much says "Yeah it's worth that" / "Not even close".  If we request a refi and tell our lender we think the property is worth $120 when we really think it's worth $110, is the appraiser going to be affected by our assesment at all? 

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