Appraisal on a 2 unit duplex with 3rd partially finished studio.

[Eric Brown]

Hello,

I recently looked at a property to purchase using an FHA loan and have become tangled in deciding how to make an offer on the property. It currently serves as a 2 unit property and has all the qualities of a well maintained duplex. The current owner started adding an additional unit to the property on the lower level by blocking off a wall and adding a shower however it remains unfished as it stands today. By unfinished I'm talking about no running water, no range oven in kitchen, and some wiring in the newly renovated bathroom. Besides that there is not much goin on in the third unit.

My question to my fellow investors out there is what is your experience acquiring properties with an FHA loan that have partially finished units? I want to make an offer on this property but want to avoid the headache of an appraiser saying that the third unit must be completed before sale. Do you see any scenario of making a competitive offer with an FHA loan?

Thanks,
EB