All Forum Posts by: Michael C.

Appraisal came in at purchase price. Is that normal or do you usually come in under appraisal?

I thought it was going to come in higher honestly. That was also apprising as a triplex with 2800sqft, not sure it would have made it as a duplex at 2100sqft from Denver record. maybe I shouldn’t have brought up the sqft discrepancy or my findings of it being a tri instead of duplex. With all that extra info it still just made it barely. 
Appraiser took $50,000 off all comps right off the bat for the condition this one was in (missing flooring, countertops, appliances from a started rehab) 

Or do appraisers just ‘try’ to come up with the value at purchase price to make seller, buyer and bank happy?

Luckily I am getting $20k concession so technically I’m under appraisal a bit just thought it would be higher. 

Edit- more info. 
out of 5 comps 2 duplexes and 3 tris

Adjusted sale price for comps- I’m lowest

Price per sqft- Unadjusted one was lower. Adjusted  I’m lowest.

Price per unit- unadjusted I’m lowest, adjusted I’m lowest.
price per bed- unadjusted one lower, adjusted 2 lower. 

I’m currently remodeling my basement to add a small bathroom to the basement, where there are 2 legal bedrooms. Trying to make basement feel like it’s own unit, has wet bar, hot plate and mini fridge for a small Kitchenet. In the process of adding a small 3/4th bath with corner shower by expanding an extra storage closet. 

Would it make sense to try and get a small stack washer and dryer or combination laundry unit in the basement?  The main floor already has one. 

Does anyone think 5 bed 3 bath house hack needs a second laundry unit? 

Really only reason I ask and not just add it is there isn’t much room and I’d have to redesign some things to add it. 

Do you think it’s important? Or just a nice to have if it was there. 

Sorry man but this sounds completely backwards. 
Instead of buying a $500 oven from Home Depot with next day delivery you want to give them hundreds of dollars for nothing or for breaking your oven. Why are tenants supplying the oven? I think it’s pretty much a law everywhere landlord must provide heat, hot water, and oven. 
If they picked the one that took that long to arrive why is it your problem now?
Your tenants are running your business. Not you. 

3.25% with first bank. It’s kind of expensive. 
why would they require more down?  Under 4 units is still residential loan not commercial.

Might be too late close in about 2 weeks.

Just a little update. All good news. 
1. $20k seller concession. 
2. emailing with the city it’s a legal triplex. Found some paperwork from zoning listing it that way in 1987 so they are going to change it officially and add the 3rd address. (Denver water also had it listed as a triplex)  Best part, this was all unintentional too. I was just asking questions and for Different records, they were like wait this doesn’t match. 

Should I tell the transaction broker it’s a legal triplex? Agent and the seller think it’s a duplex and never dig into it.  I guess I’m a little worried they will see $$$ with this info and could complicate or try to get out of the deal. 

but on the other hand the bank and appraiser need to know this to get the correct value and have the deed recorded right or the 3rd address won’t be recorded?

I’m not sure what do you all think??

@James Carlson
Ok. Wow they take it more seriously than I thought. 
I would only STR while actually living there, once I move I would go long term.

Really good info thanks.  I think the big difference is these people actually had easily provable different primary Residence. If an investigator wants to come check it out, I will actually be the one answering the door when he knocks.

Also which tax site are you using to look up the property as an apartment?

@James Carlson

I think you are wrong. per the link you sited-
"Each unit in a duplex is a separate primary dwelling unit, so the primary resident of each unit may obtain a license to conduct an STR. However, a person who resides in one duplex unit may not obtain a license to conduct an STR in the adjacent unit, because that unit is not their primary residence."

The duplex has 2 addresses. If one is my primary and one is my wife's primary we could still live on the property in 3rd unit (with no legal address) and have 2 STR's.
There would only be one rental contract per property at a time because it has 2 house numbers. The 2 contracts have different addresses. 

@Bill S.
As Steve K said earlier There's an expired listing in the MLS, from a few years ago (listed at $360k), that says it used to be a 4-plex but "previous tenant converted downstairs into a 3 bedroom 2 bath residence". 

Giving up the 4th unit may qualify as loss by vacancy  from termination of compliant uses in Denver zoning code. Even though the space wasn’t vacant for 12 months it wasn’t used as 2 units in 12 months. 

I can also tell because the basement unit was converted badly. Doorways through bedrooms in what was the diving wall to connect the units into 1. That’s why it wouldn’t be to much harder to put it back to 4. If only 3 units the basement needs the floor plan reworked. 

I didn’t think to look for evidence of another kitchen at the inspection. I have pictures of both electric panels.  There appears to be either 5 or 6 220v breakers. (2 labeled main range, one dryer, others not labeled) currently has 3 ranges, one dryer, no a/c, gas heat and water so I would assume the 5th 220v is a plug somewhere else in the basement, that’s where the old kitchen would have been.  No dishwashers. So not sure what else would have 220v connection. 

@Dorothy Ma

Would love to chat about a similar situation and get your opinion.  Let me know if we can connect.