Refinancing Duplexes and how the appraisal is done

[Vincent Ballew]

I have heard that multi family properties can be appraised on their performance rather than comps in the area is this true? I recently purchased a duplex for 105,000 and I have done small cosmetic repairs to it. I have one side renting at 700 a month and I'm in the process of getting the other side rented at 700 as well. I am wondering if I would be able to refinance and pull any money out of it if the appraisal value is done from performance. I plan on checking with an appraiser as well but I wanted to see if anyone was able to offer any advice and or information. Thanks!

[John Thedford]

Appraisals on duplex units will usually be done on the comparable sales method vs income approach.