Rehab2Rent Properties and Refinancing.
Im looking at a property up the street from where I am, hoping to get it for 120k-130 and according to comps ive seen it could be worth up to 200 or 220. So my question has to do with refinancing my cash out if I choose to keep it as a rental. Lets say currently its getting 900 bucks a month in rent but i come in and overhaul it, now it pulls 1450 for rent. Is the bank going to care about the rent it pulls when they appraise it again or is it simply going to be appraised as if it were being sold again on the open market? That is to say, are they going to take into account that it is a csh generating property or will they appraise it as if I were the primary tenant. Hope that makes sense. Thanks.
Jameson Sullivan