The 10 Dumbest Comments Said to me by Real Estate ProfessionalsI actually find most real estate professionals (brokers, appraisers, etc.) to be competent or even VERY competent (at least the ones I try to deal with).

Showing property of interest below: This is what I'm understanding...Property price: $210,100Rehab: $30kARV:$270kTo please a bank, they will ask me to leave 30% in the property when I try and cash out...that's going to mean if it appraises to the expected $270k, I need to leave $189k in (270 x .7) However, I've already purchased it for $210,100...is anyone seeing the difficulty here?

An investor friend offered me first crack at buying his paid-for 5bd/3ba SFH that appraises for $500k and is currently rented for $3k/month on a 12-month lease.

When making offer based on ARV, is it good practice to have future cash refi lender get involved as early as possible (have their appraiser connected?)

Through strategic renovations and tenant management, we forced appreciation, increasing the property’s value to $3.4M according to the lender’s appraisal.

Will an appraiser disregard the income from the non-conforming garden unit when assessing the property for refinancing?

That way you can refinance once the rehab is complete and get a loan based on the new appraised value of the property. 

I would also add that investors are often interested in Blanket loans because they mistakenly think it will save significant closing costs, but they do not as you will still need four title polices and appraisals etc. and you will get far worse financing terms on the loan and have a lot less flexibility down the road to refi and sell properties.  

Not sure what you're financing position/plan is, but make sure that you speak with your lender regarding if there are any issues financing the acquisition of an STR in North Conway, NH in the event that the property appraises as "rural."

Heres the numbers:  Borrower(s)Subject PropertyRate Not Locked 9/30/2024 Sales PriceDown PaymentLoan Amount30 Year FixedContract DepositSeller ConcessionNMLS#  $670,000.00$167,500.00$502,500.007.000% $0.00$0.00  Bank Origination Charges Estimated Title / County / State ChargesOrigination Points % $ - Owner's Title Insurance $ 4,415.00Discount Points % 1.500% $ 7,537.50 Lender's Title Insurance $ - Underwriting Fee Title Search $ - Appraisal Fee $ 650.00 Title Services $ - Credit Report Services (1) $ 299.00 Alta 8.1 $ - MERS Fee $ 25.00 Recording & Transfer $ - Flood Certification $ 8.00 Notary $ - Tax Service $ 85.00 Settement Fee $ - VOE Fee $ 150.00 Total $ 4,415.00 Total $ 8,254.50 Prepaid Interest / Items Potential Additional CostsPer Diem Interest 15 Days $ 1,465.63 Rental 1007 $ 250.00Home Insurance $ 1,800.00 New Survey (if applicable) $ -Flood Insurance $ - 2nd Appraisal / Reinspection $ - Total $ 3,265.63 Total $ 250.00 Escrow and/or Property Taxes Due Total Estimated Monthly PaymentsTotal Insurance(s) 3 Months $ 450.00 Principle and Interest $ 3,343.15Property Taxes 4 Months $ 2,868.64 Total Property Taxes $ 717.16Total $ 3,318.64 Total Insurance(s) $ 150.00 HOA / Maintenance $ - Monthly PMI $ - Total $ 4,210.31Total Estimated CostsEstimated Closing Costs $ 12,919.50 Estimated Escrow Prepaids $ 6,584.27 Estimated Funds To Closing $ 187,003.77