Rental Property Investor · Salt Lake City, UT · Member since 2016 · 23 posts · 14 votes
Hi everyone,
Im remodeling a 4 bed 2 bath duplex to make it a 8 bed 4 bath (4:2 on each side) and just finished one side. Just about to rent out the one side and start remodeling the other side. The goal is to ultimately BRRRR the thing. On the one hand I want to rent it out ASAP knowing that losing 2 months of rent isn't worth trying to squeeze an extra $100 or so of rent per month. BUT higher rents could mean higher appraisal and higher cashout refi. Therefore, would it be worth it to try to hold out for higher rents for higher appraisal? Or it probably won't matter and just rent it ASAP at perhaps lower rents? It is a duplex so the appraisal process might not take rents into consideration since it's not 5+ units?
Rental Property Investor · Winston-Salem, NC · Member since 2019 · 63 posts · 73 votes
7y
I think you have to look at your situation from an opportunity costs standpoint. Renting ASAP provides you with quick cash that you can use for something else. However, waiting it out and collecting higher rents will inevitably help in the long run and may provide you with more cash for something bigger. As it's only a duplex, increased rents and NOI won't come into play with the bank does its thing. Bottom line...do you need the money now or can you wait?