All Forum Posts by: Najeh Davenport

I have an opportunity for a subject 2 deal, and need some advice with the contract. between me and the  home owner. I need more than a chatGPT response. thanks in advance 

awesome Thanks 

Hi everyone,
I own a 7-bedroom, 4-bath home in Montgomery, AL, and I’m exploring the idea of turning it into a group home or sober living facility. I want to provide a safe, structured living environment for individuals transitioning out of recovery or other challenging situations.

I’m new to this process and was hoping for advice on the following:

• How to navigate zoning laws and permits in Montgomery for this type of setup.
• Licensing requirements for sober living or group homes.
• Strategies for finding residents or partnering with local organizations.
• Financial and operational tips for managing this type of property.

I’ve heard zoning can be tricky and want to ensure I comply with all legal and safety requirements. If you’ve done something similar, I’d love to hear your experience or any resources you recommend.

Thank you so much for your time and advice!

Thanks for the feedback—it really makes me step back and think about this whole situation.

To answer your question about the hard money loan: I went that route because I needed to close quickly, and hard money was the fastest way to secure the deal. At the time, I figured I’d have options to refinance later, but yeah, in hindsight, renting it out as-is without doing any work wasn’t the smartest move for refinancing. Lesson learned.

You’re also spot on about the equity. Between lender fees, appraisals, and interest, it feels like a big chunk of it has been eaten up. The hard money lender didn’t suggest going straight into a long-term rental loan, but honestly, that’s on me for not digging deeper into the options before jumping in. Definitely filing that under “things I’ll do differently next time.”

About the appraisal discrepancy—it’s frustrating, but you’re probably right that it’s not a huge shock since I didn’t make any changes to the property. I’m going to pull some solid comps to back up the $130K valuation and push back on the report. It’s worth giving the appraiser a chance to review and fix it if possible.

I’m also debating whether switching lenders makes sense. Kiavi’s fees feel pretty steep, and the process has been slow, but I also know there’s a chance I could end up in the same situation elsewhere. If you’ve got any recommendations for better lenders who might be a good fit for something like this, I’m all ears.

Appreciate you taking the time to break it down for me—it’s definitely helping me figure out my next steps!

 Hey BP family,

I’m hoping to get some advice because I’ve hit a bit of a roadblock with a refinance, and I’m not sure what my next steps should be.

A couple of months ago, I purchased a property using a hard money loan for $115,000. Before the purchase, I got an appraisal that valued the property at $130,000 as-is. Fast forward two months, and now the property is rented out, so I decided it was time to refinance.

I went with Kiavi for the refinance, paid $1,000 for their appraisal, and was shocked when it came back at $115,000 the exact price I paid for the property. No improvements have been made, but nothing has deteriorated either. The new appraisal just doesn’t make sense, especially when compared to the first one.

Now, Kiavi is telling me I need to bring $20,000 to the closing table** to make this work because they're lending at 70% LTV. I wasn't expecting this at all, and I'm trying to figure out what to do.

Here’s what I’m thinking:
1. Dig into the Appraisals: Go over both appraisals with a fine-tooth comb, look at the comps they used, and challenge the discrepancy if needed.
2. Switch Lenders: I’m currently working on refinancing (six other properties), so I’m thinking maybe I should take everything to another lender who might be a better fit.
 My Questions:
- Has anyone dealt with this kind of appraisal discrepancy during a refinance? How did you handle it?
- Are there other lenders you’d recommend for refinancing rental properties that might have a smoother process or better terms?
- Do you think it’s worth challenging the appraisal with Kiavi, or should I just cut my losses and move on?

I’m trying to keep things moving, but this $20K requirement is throwing a wrench in my plans. I’d love to hear your thoughts, advice, or any experiences you’ve had with similar situations.

Thanks in advance for your help!

That what I was thinking, or co living. Im really excited about both. 

I used a heloc to purchase one of our properties. The only responsibility of Your parents would be the monthly payment  so if you take out $100,000 they probably pay like $1000 a month but if you can only take what you need when you need it. For example contractor qoutes you 30k for renovations with a deposit of 10k. I personal would only pull the 10k and when its time to pay the second deposit i would only pull from your parents heloc then. It will say you on the monthly expenses

 definitely didn't think about this. I will put a call in tomorrow for the insurance quote!!!!

that's good to know, I hope I can get those same prices in Alabama