Duplex Appraisal/Refinance in New Jersey

[Brian Wolf]

BP Gang I need your help!

I bought my first property 4 or so months ago and I would love to BRRRR it. I'll give some financials on the place at the bottom. The downstairs unit needed a new bath (done) and I plan on also redoing the kitchen as well as splitting the HVAC (One oil unit currently). The top unit currently doesn't have access to laundry so Id also like to make a communal laundry area for added value. The bare minimum I'd need it to appraise for is 240,000ish to get my .75 Loan to Value and payoff the original loan (I understand I'll leave plenty of the rehab $ in this deal, still learning). So in my head I have a few plans of attack and I want to bounce them off you all. Granted, I could be so far off and none of this matter because the appraisal just isn't there and I just need to sit on an, albeit cash flowing property, without being able to refi for a while. Did I mention there's all but zero comps in the area. So here's my thoughts...

1. I continue saving money via my 9-5 until I can do all the upgrades I mentioned, prob 1 year. I'm doing most of the work myself to hopefully make up my equity gap. Then appraise it and hope it comes out where I need it. If not I still have a nice cash flowing property.

2. Call in an appraiser now and walk them through what I want to do. If it sounds like the numbers are there then take a hard money loan that's been offered to me to complete renos sooner. If I went this route I would want the appraisal to come in at 240,000 + Hard Money Loan Amount to then be able to repay my investor right away. I only want to take a loan if I know im good for it right after refi so hence my hesitation to do this without a good grasp on ARV.

Is there a better way to go about this route? Would an appraiser let me poke their brain on what I want to do and how that'll affect value? Any South Jersey recommendations for an appraiser?

3. An alternate route I haven't considered.

----Financials----

Purchase Price: 190,000 ( I know not an ideal BRRRR discount price)

% Down: 3.5% (Again, yikes and I know not ideal)

Pre-Reno Rents Appraisal: Top 1B1B - $900 (Assumed tenant paying $800) Bottom 2B1B - 1200

Thanks guys!

- Brian