Pulling Comps for Appraisal -- Distance or Neighborhood?

[Robert Kohnfelder]

Hey All!

A current BRRR rehab project of ours has an interesting location, and I'm wondering if anyone has ever had a similar situation they can elaborate on. Specifically, I'm wondering how it will impact the appraisal a few months down the road... It's a SFH that is situated on one of the last streets in the neighborhood. To clarify, the neighborhood spans about 2 miles (north to south), and this property is located just 4 streets away (0.1 miles) from the southern border, where it crosses into a "nicer" borough.

What I'm wondering is when it comes time for the refinancing process and ultimately, the appraisal, how will comps be pulled? I am imagining the most important factor is the neighborhood where the property is situated, but does that mean a recent sale from 2 miles north will automatically override a similar property/sale from 5 streets away in the other neighborhood, or will both of them be considered? And what if there aren't enough recent sales from our actual neighborhood -- would an appraiser likely pull older comps from the same neighborhood, or look for more recent sales just a few streets over, despite being a different neighborhood/borough/school district? As of right now, there aren't many solid comps and it had me thinking about what our scenario might be in a few months... 

I'm sure others have sold/refinanced houses that are on the border of two neighborhoods, so ANY opinions or outlooks would be much appreciated!