Updated over 7 years ago on . Most recent reply
Does the Book Value change after a Refi? Or just Market Value?
Say you buy a property for 200,000 and then you fix it up and REFI it at a valuation of 350,000, pay off the old loan with the new loan capital and and have a new loan etc... the BRRRR method.
Did the "book value" just change or the "market value?" Or both?
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Andrew Syrios
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- Kansas City, MO
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The market value changes (assuming the appraisal was correct) but if you mean by book value the value on your balance sheet, no, that would just be the purchase price plus any capital upgrades and what not.