Forcing Some Appreciation

[Sean Autry]

Has anyone here ever hired an appraiser JUST to get their input on what they can do to force appreciation? Im trying to get a HELOC on a rental property, but the desktop appraisal came in too low. I'm thinking of consulting with an appraiser just to find out what I can do to the property to force some appreciation. Has anyone else done this?

[Jeff B.]

The heloc might be applicable for the SFR, but forced appreciation is highly related to a MFU(5+) where the evaluation is on the GSI the property generates.

As soon as you see a margin between FMR in the area and your actual rents, the simple act of increasing rents FORCES a new evaluation value for the property. An inference from this is the added-value approach is not forcing value - - the rent changes do that without Capex expense.