All Forum Posts by: Chuck W.

Sometimes an underwriter will accept the appraisal if the appraiser finds a competing area with duplex sales. they will typically want more than 3 comps. I have used 3 unit properties on duplex appraisals and adjusted for the third unit. Have you tried a different lender ?

Determining the after repaired value or market value of your subject property is very important, especially on your first flip. Just relying on online services like Zillow is not enough. The best information you can obtain will come from your local multiple listing service. Information like how many days was the comparable sale on the market before it sold? Was the sale an “arms-length transaction” with no unusual motivation or seller paid concessions? What condition was the property in at the time of the sale? You should try and obtain a copy of the MLS (multiple-listing service) fact sheet on the comparable sale. Talk to the agent that sold it, if you can. Ask questions about the property and the sale.

You should have at least 3 comparable closed sales of properties similar to your subject. The sales should be no more than a mile from the subject property, preferably within blocks. The sales should have occurred within six months preferably more recent. You should also be familiar with the locational differences. For example in West Los Angeles California, property sells for more money north of Wilshire Blvd. If you are in the San Fernando Valley of California, property sells for more south of Ventura Blvd. Same style house, same age, same condition but the difference can be a couple of blocks north or south.

If it is your first flip and the subject property does not have recent comparable sales in close proximity to your subject and you are not “really sure” because of a lack of similar property sales, consider passing on the deal and wait until you have more experience before attempting hard to value properties.

are the comps closed sales within the last 6 months ? look at the dom (days on market) for each comp to get an idea of the demand (marketing time). Then look at the average dom times for site built homes in the neighborhood. I have never been a fan of manuf homes, but that doesn't mean you can't make money on the deal. by the way you can typically pull your own building permits as an owner of the property.

what are your current comparable sales telling you the current value is ? is it in a park with space rent ? what year was the coach built it ? local lenders are not having any trouble financing manufactured homes ?? its on a permanent foundation ?? did you get a home inspection report ? you should be able to get a ball park for repair costs from a local contractor. I prefer old school good handyman for non essential repairs.

Frank,

As a real estate appraiser for 15 years in California, I find that local established property management companies are the most reliable source for up to date information on market rents as well as general market conditions for rental units.

I want to introduce myself, I am Chuck Wilson from Salem Oregon. I have been listening to the Bigger Pocket Bodcasts for about a month and really have found some very valuable information. I am an old (really old) real estate guy. Back in pre historic times I was a residential real estate appraiser in Bakersfield California. Imagine this was before digital cameras when you looked up property recording information with a microfiche machine. My how times have changed. I moved from Bakersfield to the central coast of California in 2000 and began my career of buying and selling houses. I maintained the appraisal business while I flipped. I did about 5 flips and then ended up with 3 properties that luckly I sold in 2006 right before the big crash. I bought a 53 unit apartment building in Salem and am currently in escrow to sell and re enter the house flipping business. Just want to say I really appreciate the quality of material and people on Bigger Pockets.

Contact me at [email protected] or 503-339-6954

Thanks

Travis,

Really enjoyed your podcast. Lots of good info. Thanks

I live just north of you in Salem Oregon. Would like to chat with you sometime. Could I buy you lunch or coffee sometime ??

Thanks

Chuck