Appraisal before rehab, after rehab or both

[Alison Pels]

Closing on a 1.3 million mixed use building in PLG Brooklyn, planning to put 175k into rehab and rent out all 4 apartments and ground floor commercial space.

Buying in cash with a plan to refinance after all units are rented.

My question is should I have someone appraise the building before the renovation starts so I know how much value I’m getting from the renovation, and how much equity I have in the building for my refinance. I’m guessing the bank I refinance with will order the second appraisal, but should I pay for one myself before anything starts?

Thanks!