My question is about appraisal's. I am looking to get into rentals and I see you can get loans for up to 80% LTV. I know in the past if the appraisal came out higher than the asking price you could have equity right away. However, now a days the appraisal will come out to whatever amount you are paying for the property. I know this from my own purchase of my personal home. Does this only matter if you are going through a bank? I have found some property that I would think should appraise more than the asking price but I know the appraisal will come out at the final sales price. Is there a way around this issue?
I know what you are talking about. I had experienced that with my primary residence. I am sure there are some houses that appraise for higher than the purchase price still.
I don't know what your plan is, to buy and hold or fix and flip. Your way around it if it is fix and flip is to just do work that will increase the appraisal: improve curb appeal, enhance the kitchen or bath, or turn it into an open concept.
If its just for buy and hold, I will do small work that will attract tenants and leave it at that.
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