Roof replacement - ARV - BRRRR

[Tom Chen]

Hello BP family,

Just a quick question...

When you put a new roof on, can you recoup that cost at the refi?

In other words, the duplex I bought was $45k.

A new roof, 2nd floor floors and kitchen ran me approximately $16k.

When I go to refi, will the duplex now be valued at $60k+?

Other duplexes that have been rehabbed seem to also run around the 60s - 70s. 

[Brian Pulaski]

If comparable homes support the value, yes. If not, then no. You can't buy a $50k house, put in $100k and then ask for $150k, unless it is worth that. The homes you note that run around $60-70k, how rehabbed are they? Is your house comparable to them? If you only did roof and flooring, and those other properties have been renovated with new everything, then yours might not truly compare.

You can order an appraisal and see what they determine the value is.