Tips when refinancing Multifamily
3 Replies
Luis Valdez
Rental Property Investor from NJ (new jersey)
posted over 1 year ago
I've done improvements to my multifamily and I am looking to refi. Loan officer is asking for the value of the property. How can I give him an accurate price with going over or under the value of the home?
Andrew Fernquist
replied over 1 year ago
Hey Luis,
That's a good question. When you say "improvements" do you mean that you've made some changes to the units or that you've actually been able to improve the NOI (either through increased rents, decreased expenses, or both)? If this is commercial my assumption is that you'd take the NOI / CAP rate to get to your value number.
Stephanie P.
from Washington, DC Mortgage Lender/Broker
replied over 1 year ago
Originally posted by @Luis Valdez :I've done improvements to my multifamily and I am looking to refi. Loan officer is asking for the value of the property. How can I give him an accurate price with going over or under the value of the home?
Ask a Realtor to do a comparable market analysis of the property with similar conditions and they should be able to get you a close estimate of value.
Luis Valdez
Rental Property Investor from NJ (new jersey)
replied over 1 year ago
@Andrew Fernquist thank for your feedback. The property is residential and improvements consist of adding new central air to both units. Updated appliance, add exhaust fans to both bathrooms.