All Forum Posts by: Jason Mendoza

Are they doing the 2nd appraisal post rehab because you plan to refi with the same lender? I worked at a private lender for many years that specialized in the BRRR method and can say as long as you stick to your scope you should land in the same general area. If you can - keep the same appraiser as well since value can be subjective in areas. Only way to be completely off is by not sticking to the scope that was provided for the original ARV or a huge market shift in between. Hope your investment goes smoothly!

Hi Gregory -

In this case I would say it depends on 1. the equity in the property currently 2. willingness to get the property rent ready. In my experience, you are in a great position since you already own the property. You don't have to go through the hassle acquiring a asset at this time. If I were in your shoes, I would use this property to learn the process of investing. Get a cashout refi and use those funds to get the property ready to be rented. This will give you the opportunity to build a relationship with a General Contractor (If the property requires a lot of work) and also with a lender. Having a good roladex of contacts is key in our space. Get that property rentable and acquire your first tenant. See how the property management side works and see if its for you. I would keep the LTV low on the refi to make sure you keep as much equity in the property has possible since it was inherited. It will give you ease of mind if you ever have a change of heart and decide to want to sell it down the line.