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Updated almost 5 years ago, 02/07/2020

User Stats

91
Posts
54
Votes
James Bradin
  • Rental Property Investor
  • Destin, FL
54
Votes |
91
Posts

Refinance Small Multifamily Questions

James Bradin
  • Rental Property Investor
  • Destin, FL
Posted

Hey BP!

I am currently trying to refinance one of my properties to hopefully pull out some of the cash I used on the downpayment/ rehab. I have owned the property for 2 years, I have done about $33,500 worth of rehab and raised rents almost 17% since the initial leases. The ROI and cap rate has gone from 6.61% and 6.42 in 2017, to 13.12% and 8.04 respectively.

However I am running the issue now of determining the true value of the property.  With it being a small multifamily unit I am having a difficult time finding comps to use as comparison for the appraisal.  I have heard multiple guests on BP talking about "fighting back" if the appraisal comes back lower than expected by providing comps.  I just want to prepare myself if the appraisal comes in lower than expected.  

Does anyone have any tools/websites that can help with finding accurate comps in order to determine the most accurate value of their small multifamily units? 

Is 2 years of "seasoning" with increased rents and stable tenants enough time, or should I wait longer?

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