Hey guys so I have a single family home right now that I’m slowly fixing up as I love in it with the goal in mind to pull the equity out to purchase a multi unit building. My question is how to get an appraiser to use a basement bedroom towards the total square footage of the house? Also any tips on forcing equity in a home would be appreciated. Thank you!
@Michael Rock, the bedroom has to be legal and included in the assessment from your town. That should do it.
You can't really force appreciation (like you can with 5+ multi-families) with SFHs because the price is based on comps. You're only real opportunity is to find a house that has opportunity to "reach" the market. E.g. a 2/1 in a neighborhood of 3/1 houses could be made more valuable by adding a bedroom, making it more in line with the rest of the homes. All depends on the cost of adding the bedroom and how much additional value that will bring.
I had a contractor say it would be 4-5 thousand to excavate the window the height required and the value added after would be close to 20k since it’s 200+ square feet at about $100 a square foot
in order for a basement to count as square footage it has to "conform" and there has to be an egress window from my understanding. otherwise its nonconforming and not safe to occupy.