Hey all,
My wife and I are house hacking a duplex which we closed on back in February. The house is four levels with one common stairwell, each level having it's own separate entrance. I've looked into having the house rezoned as either a triplex or quadplex. However, I've learned that the house is already a non conforming duplex as the zoning codes have changed significantly since 1944 when it was built.
My wife and I are occupying the first floor and renting out the second floor. The attic and basement are both roughly 600 sqft of unfinished space and I'm converting the basement to a 1 bed 1 bath studio. My realtor originally advised me that the value of the house would increase by the value of the square footage added. I've since learned that it is not so straightforward with small multifamily, especially when there are not a lot of comps in my immediate area. Aside from the basement, we've also put in new LVP flooring and appliances in the two occupied units.
I guess my question lies in my concern that the improvements will not be realized on appraisal, causing me to have a hard time pulling equity back out of the house. I'm trying to get a better grasp on how the improvements may or may not effect the appraisal upon refinancing and if there are any actions I can take to positively effect the appraisal?
