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Updated almost 6 years ago,
BRRRR: Do banks use cap rate to appraise small multifamilies?
Question about the step in the BRRRR process where Banks appraise your property in order to determine value to refinance against:
Do small multifamily (2-4 unit) investment properties typically get appraised based on comps or on Cap Rate? i.e. can I drive the appraisal value up by increasing my NOI, or am I at the mercy of what the appraiser thinks the house should be worth based on subjective assessments of condition, square footage, # of bedrooms, location, etc.?
Thanks in advance for your wisdom! I tried searching through the forums but couldn't find this answer.