My Flaw with BRRRR.
First off I use the BRRRR strategy and have done very well with it. My problem is the 3rd R (Refinance) ". I one get low appraisals and I can do anything about it because I've tried fighting them and bringing my own comps and having my realtor meet them, but the fact is I. My area refi and sell appraisals are not created equal. One of my problems is that when I rent it the people move there furniture and stuff in and the property ends up looking worse because of the furniture and clutter. These are nice rentals in good areas. Am I able to have the appraisal done before having a tenant move in?
Most Popular Reply
I have been BRRRR-ing for over a decade and cash-out appraisals are always more conservative. You pick the 5 best comps, the appraiser will pick the 5 worst. That changes everything.
On a cash-out refi the appraiser has no target number from a purchase contract. One thing you can do is let them mature over a a winter, wait for the spring comps to be to the books and then re-fi. I assume you have a similar seasonal cycle as we have here in Wisconsin.
Ah yeah, and one more thing: never fight an appraiser..
