Will they go into my SFH to 2 Unit BRRRR - Refinancing

Question

Hi BP,

In 2019, I converted the SFH I live in into a 2 unit multi-family home. I now live in the 2 bedroom basement unit with one renter of the other basement room. I rent out the main house as well.

I am considering refinancing to complete my BRRRR and have a few basic questions:

- Do you need to physically be there for the appraisal? I am currently away from the home during COVID-19 temporarily.
- Should the home be empty or occupied for the appraisal? Being rented is important for appraisal values I believe? If occupied, will the tenant's "neatness" impact the appraisal value?
- Do they need to do a home inspection/go inside the home? Especially since I bought it as a SFH, and it's now legally been converted to a 2 Unit multi-family.

Thanks so much everyone,
Drew

Wayne Brooks · Answer

Agree with above, but....triplexes are. Allied by comp sales, not by income generated.

Kevin Romines · Answer

1) Do you need to be there for the inspection - No however someone needs to be there to let them gain access to the property for the interior part of the inspection.

2) No, the home should not need to be empty. The lender will use your your lease agreements. If any unit is empty, the appraisal will show what market rents are for the unit, so the lender would use that for any vacant units. Yes the tenants neatness can have a minor affect, however the appraiser views all properties as if they are empty, compared to the comps they choose that are most relevant to your property.

3) Fannie Mae and Freddie Mac do allow a drive by appraisal due to COVID, you will need to talk to your loan officer aboutr ordering a drive by if the lender allows it. None of mine have been drive bys, but it can by done?