We put about 100k into it, and now got it reappraised in hopes to cash out to a 80% ltv.It appraised at 1.1Million.

This spring I bought a second Colorado wholesale 4-plex from myself on an estate deal for just $240K that had an appraised ARV of $850K and am rehabbing it and getting close to completion.

Then, after fixing it up you get an appraiser out there to determine the properties new worth.

You will have problems if it doesn't appraise high enough at exercise. 

@Dionne Rodriguez market has been up as much as 15% in certain markets since last year but without additional info I'm not sure where appraisal would land.

The downside is (1) compared with residential, comps used in appraisals are nowhere near as accurate, so the income approach is heavily relied on, which can produce huge swing in “valuation” depending on cap rates, interest rates, revenue swings, expense costs.

Had an appraisal for a cash-out refinance which came in at 185k.

I locked in the 3.25 at 5K lender credits with the agreement that it is subject to change depending on what the appraisal comes back as.

We estimate that it would appraise for about $450K now!

Younger investors, or older ones without kids and parents and dogs and other such things can certainly choose to live in a duplex unit.I don't expect this to be a game changer, although I do expect that it will change the way ADUs are appraised.