So I need some help doing the BRRR strategy successfully... So I just bought two properties and put around $15,000 into each of them. My current lending bank basically just told me, not to my surprise, that there is not much room to refinance and take money out. I put 25% down of these properties and also borrowed 80% of the renovated costs. Here are the numbers on my two properties.
I of course believe the houses have appreciated in value. The bank basically told me they are not sure if a refinance appraisal would work?
Thoughts on next steps? Should I just pursue other banks and get an appraisal?
- Property 1 - Appraised for $119,000
- - Maximum loan amount at 75% is $89,250
- - Current loan amount is $89,250
- Property 2 - Appraised for $86,000
- - Maximum loan amount at 75% is $64,500
- - Current loan amount is $63,562
Do you agree with those Appraisals? If so - then there is no point in going and speaking with other banks.
As I mentioned in my first comment I do believe the appraisals can go a good bit higher.
Before spending a dollar I would take the appraisals you already have and basically perform your own new version using the same exact deductions the appraiser used. If you can convincingly use the same approach he did to come up with the values that you need then go ahead and pull the trigger on the appraisal.
Excellent, thanks for the advice.