Appraisal advice for HELOC or refinance

[Andrew Bresee]

Hello BP!

Longtime lurker and reader. I’ve searched and have not found the answer I am looking for. If it’s out there, I’d love a link.

A little backstory-

My wife and I own two duplexes side by side. (4 units, two buildings on separate parcels). Purchased within 2 months of each other with separate mortgages. Things are going well. We live in one unit and rent out the other 3.

We've put quite a bit of sweat equity and actual equity into the primary residence and the adjoining unit and want to refinance or use a HELOC to help pull some cash back out while preparing to buy our next property.

The next property we want to buy is also next door. On the other side of our primary residence. We think it makes sense to target that one for a lot of reasons.

With all of that lead up, here’s the big question- when we look to refinance we will need an appraisal. Comps are tough to find in this neighborhood. Once we do that, and since we will be literally next door to the property we want to buy, will we potentially be raising the comparables significantly for the property we are looking to buy? Or do appraisals and refinances not show up as comps? How does that work?

Thanks in advance for any advice.

Andrew