Investor · Palm Beach County, FL · Member since 2019 · 370 posts · 330 votes
I am in a rush to do a cash-out refi on a particular Florida property I have. Currently, the 2-unit has one unit rented and one unit in an extensive turnover with several new appliances being installed. The rented unit has some issues with the kitchen cabinets but is otherwise in decent shape, the cabinets are set to be replaced in a month or two.
Comps in the area are higher than I expected, should I wait to order the appraisal till after all work is done?
I am in a rush to do a cash-out refi on a particular Florida property I have. Currently, the 2-unit has one unit rented and one unit in an extensive turnover with several new appliances being installed. The rented unit has some issues with the kitchen cabinets but is otherwise in decent shape, the cabinets are set to be replaced in a month or two.
Comps in the area are higher than I expected, should I wait to order the appraisal till after all work is done?
Wait until the vacant unit doesn't have any ongoing work. For appraisal purposes, an old dish washer is a lot better than an empty hole with wires sticking out. And a new dish washer isn't going to move the needle, so no reason to wait for a new dish washer. Within reason, extend that across all appliances... an old and loud energy inefficient air conditioner isn't really going to hurt you (beyond statistical noise), and a new energy efficient one that's quiet isn't really going to help you (beyond statistical noise). Most of the time, when you hear about "I upgraded the air conditioner, and the appraisal came in $20k higher!" what's really going on, for at least 90% of that $20k delta, is just overall market movement. The broad 'voting with dollars' of dozens/hundreds of buyers/sellers, acting in aggregate, moves the needle a LOT more than one little air conditioner or fridge could ever hope to move it, provided the appliance in question is present and working.