All Forum Posts by: Shari Lawson

Thanks for the input everyone!  I feel more equipped to handle the situation when I encounter it again.

Great suggestion @Rick Pozos!!!! 

@Justin R. 

 Multiple times??? I wish I had caught the error when I purchased the property...Lessoned earned -all future buys I will make sure to verify the stated measurements. 

Oh wow. Yes, It was appraised at time of purchase and the it reads 1470 in the report. I'm assuming the appraiser did not measure the property but went off what was listed...

I purchased a property in San Antonio, updated it and rented it out. All records stated that the property was 1470sq ft and I was paying property taxes based on a 1470sq ft house. The house was appraised at the time of purchase and the ARV was $116K.

We recently put it on the market to sell. Under contract for $135k.

The buyer’s appraiser says the house is not 1470sq ft , it is only 1270sq ft and appraised it at $126K. The buyers bank would loan them no more than $126k.

How could this 30 something year old house not have been accurately measured all this time!? 200 sq ft could not have magically vanished. And I was paying property taxes based on a higher sq ft amount!

Has this or something similar happened to someone else? How did you handle it?

(I must add- Yes, the final appraisal was higher than my initial ARV, but that's not the point. Numbers-Purchase price $65K+Reno/closing/holding costs $22K. Hard money then refi so final loan at $88K. Coop at $13K. Sold for $126k)

@Ann D.  Welcome to BP! make sure to check out the podcasts. All the best.

If I am not familiar with the area or need to re-evaluate my numbers I usually call about 3-5 active listings on craigslist for like properties within the zip. But I think zillow has some rental information.

@Justin Dixon Also consider your exit strategy and how you plan to finance your next deal. The value, equity or lack of equity may play a role in your available options. All the Best!

@Jason Ehlert

I recommend starting close, no more than a 15 min radius. That's mainly so that (1) you are familiar with the area  (2) you are familiar with the property values and (3) If you plan to do the maintenance yourself the property is within close range.  

As far as what you should be looking at- I would say do the numbers work? Are you making your desired return on investment?

Also, as far as financing goes-banks look at quads similar to single family and you would possibly be eligible for owner-occupied type financing such as FHA if you were to live in the property.

All the best!

@Harrison Ojimma

My most recent reads that I recommend.

"Multi-Family Millions-How Anyone Can Reposition Apartments for Big Profits" by David Lindahl and "How to Make Big Money in Small Apartments" by Lance Edwards.

All the best!

@Garrett Diegel

Stay on top of your realtor as you have been. My first short sale took almost 9 months and the second short sale took 7 months. I hope the deal pans out for you!