I'm curious to find out what the value is for my investment property without having to pay for an appraisal in case the value is too low for a refi then it becomes wasted money. Not sure how accurate zillow's estimate is when I view my property on there. Thanks in advance.
Zillow's estimate is garbage. It is inclusive of a large group of properties...most of which have nothing in common other than they are on the same map. Learning how to analyze market, specifically to find the micro-markets, is critical to your success. It is not hard to do, but it does take both the right tools of the trade and experience in the collection of the correct data to be successful at it. You can use Zillow for that info, but you can't let them decide on the area you will analyze or the criteria you will be analyzing against.
I try to specialize in a small area and a specific price point range, that way I know what a house in that specific area looks like in the A-G price range. I'm CONSTANTLY looking at the MLS for that area and price range to hone my skills. I even have my wife go thru and cover up the price and let me try to guess. Silly I know but it works lol. I can typically guess really, really close. Obviously that number for you in Hawaii would be drastically more but you get the idea.
Can anyone give specifics? Can you spell out and explain how you come up with valuations and ARV? What tools and give an example showing the process?
Without specifics, it's hard to say. 1st guess time: we're talking a MFR (2 to 4 units). In that case, make friends with a local real estate agent / broker and ask if they will do a CMA for you.
5+ units is rather a different situation. You'd need to be able to learn at least the typical rents in the area and the typical Cap. rate as well as getting some idea of expenses so you can get an estimate of the NOI and use the Cap. rate to project a possible property value / selling price.
@Justin Young from the lenders I talked to locally, they all use the city and county records for a refi or HELOC. So you wont be paying for an appraisal unless the amount you want is over $250k was what I was told.
Talk to your real estate agent and see if they can do a CMA Report. This is a good indicator what the going rate for your property.
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