Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 5 years ago on . Most recent reply

User Stats

5
Posts
0
Votes
Kole Halladay
0
Votes |
5
Posts

First deal under contract! But appraisal came in low...

Kole Halladay
Posted

Hey guys! I have property Under contract for $215,000. It’s a 5 bed 3 bath 2,050 sq ft home built in 1995. It’s a stand-alone home part of a gated community built in the 90’s. It’s on the same road as the high school and just 1 block from main-street. 
 Originally I thought it would appraise for 240-250k, but the appraisal just came back at $215,000. The appraiser used only comps within this community mixed with apartments, condos and townhomes that share a pool, tennis courts, all maintenance exterior and RV parking. I should have foreseen this with the fact that I won’t own the land. 
I have about $13,000 in credits with CC and my real estate commission. My all in monthly payments, including tax, insurance, HOA fees in about $1,100. Rent comps run $1,600-$1,900 (updated at $1,900). The cash flow will be good. But my equity won't be where I thought. Should I still buy it?
I am in the real estate for the long run. Buy and hold. 
I make about 84k as a career firefighter. And just got my real estate license and make about 5-7k a month for the past 6 months.
I am using a HELOC on my primary residence for the down payment. The HELOC payment is $108.
what do you guys think? 

Most Popular Reply

User Stats

174
Posts
69
Votes
Cameron Price
  • Real Estate Broker
  • Hartsville, SC
69
Votes |
174
Posts
Cameron Price
  • Real Estate Broker
  • Hartsville, SC
Replied

@Kole Halladay, Appraisers like to come in at value. It's a big game. The odds of it truly being worth exactly what you agreed to pay are very slim, but most of my deals are like that. They appraise magically at contract price or just slightly above. They really don't have anything to gain by saying it's worth more. Their job is to prove to the lender that it's worth the selling price, not more. They have no incentive to appraise it higher. 

Loading replies...