Last fall I took the plunge and purchased a 4-unit Multifamily in New Rochelle, NY. I was able to get a very competitive price from the seller, who had been promoted at work, and no longer had time to manage the property. The home was purchased with an FHA loan, so I put down 3.5% and acquired the home for $725k. After the appraisal, I found that the home was over 1,000 square feet larger than what the county records listed it as, so on a price per square foot basis, it was significantly undervalued.
It is has 3, 3 bedroom units I rent out, and a 1 bedroom that I live in. The gross income should I rent out my unit would be about $9k per month. But as it stands, I'm cash flow positive while living in it!
My question to the community - I want to refinance into a conventional Loan ASAP vs. making ongoing Mortgage Insurance payments. There are a number of multi-family properties that have listed/sold nearby that are $100-150k higher than my purchase price. These are smaller properties, with less income.
Do I stand a chance of re-appraising significantly higher simply on comparables? I've done cosmetic upgrades, but nothing significant in terms of renovations. Curious what my chances are of appraising $150k higher just due to recent sales in my area, without altering the structure.
Any insight or advice welcome!
If the comps support the value, you will get current appraisal value wwhatever the market offering right now.
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