Will a tenant who is behind on rent have any affect an appraisal?

2 Replies

I’m doing a cash-out refi on a 2-unit home and am dealing with a tenant who has only paid half of November’s rent, we are in the process of dealing with this tenant but if we go further with scheduling the appraisal, will this have any effect on that process? Should I wait till the tenant is up to date on rent or removed from the property?

It shouldn't have any effect on the appraisal itself, but it could have an effect on the loan underwriting. It's not uncommon for them to ask for bank statements showing deposits matching the rent. 

If you are well-qualified (in terms of DTI) and don't need the rental income to get approved for the loan, you are probably okay to move forward. But this is a discussion you should have with your mortgage broker/lender.

The tenant locking the door and not letting the appraiser in will impact the appraisal, but them being behind on rent will not have an impact. The disgruntled tenant spouting off over every alleged past due repair item could also screw you up.

Best bet is to give them $100 and tell them to go get lunch.