All Forum Posts by: Lee Bell

If it's the one I think it is, I don't see a kitchen or baths in the photos.

If there are no kitchen or bath pics in your ad, people are likely to assume the worst.

8 buildings and 6 units per building would be 48 units.

Yes to that. Recheck the basic math.

I have a story from the other side of the fence.

Years ago, I rented an apartment on a 6 month lease, with first months rent and 1/2 month security deposit. At the end of month 5 I gave notice I would move at lease end. Paid 1/2 months rent, and sent a note I needed the other half to find a new place, but no worry the place is undamaged. I had done this before more than once, no problem. A few days later I get a 3 day notice to pay or quit / leave. Then they sued for eviction. I moved out end of month as planned. No damage to the place. 

They continued the legal process. Eventually I went to court representing myself. I believe it was small claims court. The landlord did not show up, but sent an attorney. The judge was angry, attorneys are not supposed to be in small claims court. The judge decided they were technically allowed to sue me, beacuse I technically broke the contract. I had to pay some court costs, but nothing else. So, nobody won that fight.

The hood and building were C class at best, I would say. Still are. At the time we called it El Cockroachador, a twist on the apt buildings name. Looking at Yelp reviews people still complain about roaches there. Same owner too, I bet he is rich. But slimey nonetheless. 

Try not to go nuts with the suits. ;>)

The lender will have to order the appraisal, they can't use one you bought.

My husband described these LLs as streetwise men who were not easily intimidated.

If that is not you, or close enough, running a place like this is not for you I guess.

[quote]Certified Residential Appraiser here. I can tell you it would not be appropriate for an appraiser to use a single family home as a comparable for a duplex.[/quote]

Plus one on that. It sounds like you have a difficult appraisal problem with this property. Possibly due to the age and historic status in part. Urban areas I am familiar with (LA) usually have duplex comps in reasonable distance. I would also be looking at 3 units of similar size if lacking 2 units, but not SFR. Location location, and in a city you should not have to go 5 miles for comps. I would not go from this suburb to that one either.

There are always exceptions for weird properties, but maybe those just can't go FHA, Fannie, or Freddie. The buyers interest and yours might be better served by talking to a local portfolio lender who is not bound by Fannies regs and can be more flexible.

No comment on whether the appraisal was right or wrong. I have no idea of your market. Sadly there are bad appraisers out here, and appraisal management companies (AMC) that only care about fast, and cheap appraisal fees. They go hand in hand. Anyway, appraisers do not make the market, buyers and sellers do. We just report it. Better appraisers don't do cheap and fast. Portfolio lenders tend to want a good appraisal, after all they are loaning their money not some syndicated sucker money.

Just my $2.  :>)

What is the highest and best use of the property?

Is it worth more as SFR or duplex?

The answer to this is the answer to your question.

Lee Bell, new member here from Reseda CA, in the San Fernando Valley of Los Angeles. I am a Certified Residential Appraiser, working here since 1992. We (my wife and I) are thinking about retirement, cashing in the house we own here and moving somewhere less expensive. Then buying rental properties for cash flow. Maybe some flips. I am semi handy and have too many tools. We are a ways off from Social Security age.

We have not decided where we may move, but have been thinking about the Lake Isabella area. I found Bigger Pockets from some link or other while looking at properties on Realtor.com. I see a lot of good info here, and there is a lot more to investing than appraising. So, I am here to learn and plan. There may be some jokes too. So, there is my intro, let me see where to add a pic to my profile.