Key Elemtents to Rehab for Maximum Appraisal
Hey so I am closing on a duplex (2 bed 2 bath each unit) in Foster Powell Portland that appraised for 50k over $320,000, which is the price of purchase. I want to live in and rehab the back unit to refinance later this year (if interest rates don't out pace my current $200 PMI per month) into a conventional loan. I want to maximize my refi appraisal and my future rents. What are some of the key cost effective ways to boost numbers for rent and refi?
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@Melissa Dorman if you are rehab and refinancing you will want to push the product to match a higher comparable property... So, if your place is old 70s and the rents are low, the remodel will need to be such that the new rehab will allow an appraiser to use new construction or remodeled units that receive the higher rent. They look at comps, not financials...
Sub-metering can me expensive but what you should do is a flat charge back for utilities with the new tenants.
DM me if you are interested in talking further or need some contracting advice.