All Forum Posts by: Samir Solanki

@Jerry Padilla

I believe that's what the appraiser did when I originally purchased the property to get the comps. When I bought the property, it was listed as a single family. Now we're doing the cash out refi as a triplex since the property is a triplex and that's why no appraiser wants to take it. I've upped the payment amount for the appraisal so hopefully someone will bite. 

@Kevin Sobilo That's a great point! I'm paying for the standard appraisal cost which comes out to around $700. I actually don't mind paying a bit more to "entice" other appraisers. Thanks for the input. 

Thank you for the response. I'm going to look and see if they're use ROI for valuation. But from what I remember, if the property is less than a 5Plex, they have to use the comparable sales method in order to qualify for conventional financing. I could be wrong? The rate I'm getting on the cash out over thirty years is 4.25%, which I really don't want to give up. But if it doesn't work out I may need to look at other financing options, which I'm sure will be more expensive.

I'm in the process of doing a cash out on my current BRRR.

Property info:

3 single family homes on one large lot. Qualified as a triplex when I bought it. 

Purchase price: $200K 

Rehab: $40K 

Current rentals: $3,300/Month

The property is fully leased

Now I'm trying to do a cash out refi. Quoted rates are great and a preliminary CMA from my loan broker and RE agent show a potential valuation between $350K and $400K. I'd be happy if it came back at $300K.

Now my loan broker is saying that he can’t find an appraiser that will appraise the property because it’s unique in the sense that it’s 3 SFRs rather than a traditional 3 unit building. He says that appraisers are saying that comps are hard to find. 

Anyone have this issue before? How did you deal with it? Thanks in advance. 

@Account Closed My lender is able to finance as a multifamily dwelling with no issues. Terms are great, too. Just wanted to share. 

It's interesting, I checked the appraisal district and they have these homes listed on the property! Even then the taxes are super low. 

Hello, everyone. I'm looking to purchase a property that includes a 13,000 sqft lot with three single family homes on it. 

Asking Price: $200K

Home 1 - Currently occupied by owner, but can rent for $1000. slight work needs to be done, but no more than $3K

Home 2 - Currently rented for $900 and no work needs to be done. 

Home 3 - A bit run down, but can be fixed up for less than $10K and can be rented for $900. 

Now this is different for me, but these three homes are on one single lot and share the same address. But apparently this is common in this neighborhood and each home is identified by a "1/2" as a post script to the numerical address of the home (if that makes sense). Wondering if anyone has any experience with this. My concern is if this can be financed as a conventional mortgage or will this be considered a multifamily? I think it's a good deal based on the numbers, but when it comes to selling the property, I just can't sell them individually, it has to be sold altogether. Thoughts and opinions are welcome. 

Thanks for the replies. Here are my follow up answers:

Theresa - We're estimating around $7000 - $8000 to replace. The roof has been up in this condition for at least a few years with no structural issues. The seller has offered to lower the purchase price by $6K - $7K. It's a smaller roof. 

Ryan - duplex is 2 bed 1 bath (upstairs and downstairs, each). The electrical and plumbing was redone along with some drywall work. It's not in the worst condition as compared to other properties, but would probably need some work in about 3-5 years. The rents are at $1800 total. Lots around this area are going for $150K - $175K. 

John - Thanks for the reply. I don't think the roof specifically would be an issue for another few years, but again I don't know how long that would be. COnsidering the seller is giving an allowance, it may be worth it. I agree that this is more of a land play considering the location of the property, it's fantastic! I'm definitely not getting rich off the rental income here. 

Hello all real estate professionals. I'm looking to purchase an all brick duplex in Downtown Houston and just recently had an inspection done. The inspection found that the roof in the attic was black which means there was a previous fire. The seller wasn't aware of it (he doesn't live in the property). I'm not sure if that's true or not, but he knew I was getting an inspection done. The duplex is 2011 sft, 2 stories. The roof isn't very large and the inspector said it didn't seem to have structural issues. Tenants have lived there for many years without any problems. The seller was upset that he didn't know there had been a fire and he hadn't conducted an inspection when he bought it. He is giving an allowance of $6000 off the total sales price for this issue. The home was built in 1938 and his original asking price was $235K and now is down to $216K after negotiations and this fire issue. 

Some additonal info: The home is in prime downtown location and empty lots here are going for $150K and $175K for the same square footage. Just wondering what your thoughts are on this. Would this be a deal breaker? If I had to replace the roof, what price range should I expect to pay? Or perhaps I may just need some remediation work which I would think would be significantly cheaper. Interested to hear y'alls thoughts on this. Thank you in advance. 

Thank you for your quick responses, Kevin and Yavor. I keep having a hard time just buying something for the potential appreciation. My gut tells me it'snot the best deal, unless the seller comes down to around $160K, which I doubt he will do.