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Updated almost 6 years ago, 01/02/2019
First Property Refinance
Hello Bigger Pockets Community! Looking for some advice on my first property, and how to use it to achieve my next goals.
Around 6 months ago i purchased a small duplex, which i live in half with my wife, that we have rehabbed. We rent out the other unit, but have not done any repairs / renovations to the other unit.
We are currently paying around $500 / month of the mortgage, that the tenants do not cover from the other units rent. I believe we would cash flow around $200 if we moved out and rented both.
I am trying to plan my next purchase, but what is most holding me back, is that i am on commission, and cannot qualify for much as my 2 year mark (when commission is lend-able on) is not until OCT. 2019. I thought i was stuck until October, but now i am wondering i could turn it into a BRRRR property, refinance the house and pull out some cash to try to purchase again.
Things have slowed down since i bought the property. The closest comps to my property, is one that is currently pending at $295k, and one pending just like mine at $275k. I paid 290k, so if this other property sells for 275, i see my house being hard to appraise any higher than i paid. We owe about 250k on the house, and i have a loan with my dad for a portion of the down payment money. I am looking to fix up the property a bit more to help it hopefully appraise for more.
here are my real questions.
We have Vinyl siding, so i am not sure besides landscaping what i can do to increase curb appeal (i think that is one of its biggest drawbacks. Has anyone painted vinyl siding? I know it is possible but not usually ideal.
For the second unit, i think some laminate counter-tops, carpet, and paint, would be enough to really refresh the unit, and cost maybe around $4,000.
Besides these, what else might help me in refinancing? I am not sure if i would be able to force much more value out of the property.
The property if i moved would rent around $2300 total for both units, does the rent factor into the appraisal at all?
Any advice is greatly appreciated.