Waived Appraisals good or bad idea?

2 Replies

I am looking at a property to buy this is the break down.


Original Listing Price : 700,000

New Listing Price : 650,000

Taxes : 11,500

Insurance : 2300


Rental Income $7,600


Only thing is the SELLER knows it will appraise for around 600k and he is firm on 650k is it a bad investment to pay the difference in Cash to make up the difference???

@Chris Toedter It is a pretty skinny deal when you look at all the numbers. I'm guessing it is seller carry? Is there an opportunity to put on a little lipstick and raise the rents as units turn over. I'd say paying 50 over is unwise-you need that for reserves and light rehab. Seller may not be so firm when he sees you walk.

If the seller will carry enough of the price at zero interest you can figure out what amount equals paying the $600k price with a regular bank loan.

IE.  I’ll pay $600k and get a bank loan or I’ll pay $650k if you finance $100k, interest free for 100 months. Or something like that.