All Forum Posts by: James Rodgers

@tyler 

@Tyler Blackburn 

@Casey Hildreth Agreed, if it works out well for you I'll consider giving it a shot as well.

Does anyone in the Birmingham, AL area have an appraiser you've been working with whom you think highly of? I'm looking to get help with a "desk appraisal" and it will probably be with small MFRs. 

Thanks!

@Account Closed I do stitcher, what number podcast is it? Thanks man!

@Account Closed That seems logical to me. So you're saying if I am the trailblazer who builds the first up-to-date MFR in the area, don't expect it to appraise any differently from a SFR in terms of square footage? If that's the case, BRRRR might not be ideal in the areas I'm looking. I've also been considering either the FHA 203k or homestyle renovation mortage for this first MFR I'll live in.

@Glenn D. I always appreciate people who communicate in bullet points :)

1. I was afraid of that. 

2. You and Will Gandy are kinda saying the exact opposite. Perhaps difference across the country? I will definitely contact an appraiser like you recommended and that will tell. 

3. Can I request the appraiser take a particular approach? Or is it simply up to the personal opinion of the appraiser? I can see that if there are few comps and they have to go with the income approach, that might be in my favor if the cash flow is impressive?

Hi everyone, 

I am specifically looking for MFRs here in Birmingham, AL for my first investment property. I plan on living in one of the units. A quad would be ideal. 

An issue I keep coming across is the fact that most MFRs I come across have no recent comps which would help me get an ARV. A lack of recent comps would also influence the appraisal. This is of great interest to me as I hope to use the BRRRR approach, and I know the refinance is critical here, making the appraisal critical.

For example, I recently went to view a triplex with my contractor to come up with a repair budget and an offer price. I was excited about the property, the location and the cash flow I was estimating. However, the RE agent I've been working with was very concerned as the only multifamily comp she came up with was like 10 units or more, and sold, total, for much less than what the seller of this triplex was asking. She also kind-of compared it per sqft to the SFRs in the area. Her advice was to just walk away, since the repairs needed themselves would be more than she thought it could even appraise for. 

So my question is this: how critical are the comps in an area to a multifamily appraising well (by well, I mean enough to refinance and pay for rehab)? Say I purchase a large, 1920s house, rehab and also convert it to a multifamily (4-unit, hopefully), while >95% of everything else in the neighborhood is either single family or large apartment complexes; what should I expect in terms of an appraisal and refinance? I feel like I am struggling to ask a clear question, but hopefully it is getting across. 

I have heard it mentioned in a positive light that there were "no similar comps in the area." I have also come across the concept of appraisal based on income-generation, not just SFR market value, but that's about all I know, that it is a thing.

Any knowledge is appreciated! Thanks everyone!

James

@George Carrasquillo I am glad I saw this! Thanks for making the Birmingham and BP communities stronger! I hope all goes well for you.

James

Can't link to a profile cause I'm on my phone but @ Clayton Mobley is your guy on knowing Bham areas and investing, hit him up. 

@Sebastian Marroquin ooh I really like your last paragraph, I will for sure do that when I do land a larger property. Does that affect the terms on your loan at all?

James

@Arianne L. having gone through it now, I think I might have made an offer for $110k or $120k. The numbers still would have been great. I did waive most, including an inspection, but kept a financing contingency.