Is an appraisal necessary/recommended?

[Shane H.]

I have an accepted offer from a seller for a triplex and owner financing. I will be getting a rent roll and lease agreements to confirm, but assuming they haven't lied about the rental income then the purchase price I'm getting this property for pencil's out. 

Being that it is owner financing, my plan is to refinance it into conventional as soon as i can while avoiding PMI.

I could go into deal analysis if anyone is curious, but I mostly just wanted to ask a cursory question of this. "If the deal makes sense cash flow wise, should i still pay for an appraisal?"

It isn't that i'm not curious what the appraisal would come in at, but I will likely be getting one when i go to refinance in 6-18 months and all the value would do right now is: 

1) Give me a more accurate idea of what the bank would value the property at

2) Delay closing as appraisals are 3 weeks out minimum right now

3) If it comes in high the seller could use that info to back out

4) Add additional costs (around $950) to the closing

P.s. - I will still be ordering an inspection.

Thanks in advance!

[Caleb Heimsoth]

Originally posted by @Shane H.:

Originally posted by @Caleb Heimsoth:

@Shane H. I would do a minimum appraisal at the least. You’re not obligated to share the result with a seller

So not a full appraisal but like an ARV?

Sort of. Do two things.  Find an agent to run comps. Then find an appraiser to do a Drive by appraisal