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Updated almost 5 years ago, 02/07/2020
Refinance Small Multifamily Questions
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?