HELOC APPRAISAL ADVICE

[Corey Kenney]

To make a long story short. I bought my primary as a foreclosure and used a Streamline-203k to remodel everything but the siding. Everything looks great except the siding and the garage doors which are not terrible but does not make the property renovation look 100% complete. I bought the house for 177k used the 30k that I was allotted with the streamline and 8k on credit cards and when they did the appraisal they said it was 269. I contacted them to give them a hard time about the process because I felt cheated out of value. I sent them a list of everything I did in an email and how clearly none of it was taken into consideration. My solar which generates 8-9,000 KWH I know should raise me a minimum of 25k over neighboring comps in NJ based on the information I got from BP members and the links to the info they provided. I know the comps they used would put me close to this number without every detail of the renovation but not including the solar. I wanted to make sure sure I got the correct value. What they disclclosed was that if i choose to do the upgraded interior appraisal I would be stuck with whatever that number comes out be. My plan was to get the HELOC for 40K so I could use it for my RE investing. They are offering a line of 34,800 so do I take the chance and have it done or just go with it? What if they still don't take my solar into consideration? Can they do that or is there a standard they must follow? Thanks in advance. 🙂

[Mike Bonadies]

@Corey Kenney Sorry to hear about your situation. Does the bank or the appraiser state which method they are using? Your solar energy would come in beneficial in the income approach or rebuild approach but probably won't bring a ton of value in the sales approach. If you can understand which method they take or ask them to blend multiple approaches that may be beneficial. Other than that it looks like you are short about 5k going down your HELOC approach, being short 5k isn't too far off, I would consider sticking with that and getting your next investment. 35k can get you into a lot of small multi-family rentals in South Jersey!