First BRRRR deal and needing some advice!

[Ryan Jackson]

So I am currently finishing up rehabbing my first BRRRR project. It's a duplex and I have the top unit rented and going to rent the bottom when rehab is completed. My concern is the appraisal coming back low. The property should appraise for more than enough but what I've noticed with the few deals that I have done is banks do not appraise properties for anymore of asking price when I originally buy them. This deal shouldv appraised for closer to 80,000 but only appraised for 33,000 which was magically the price I was buying it for. Every property I have bought seems to be this way! Really hoping I can get an honest appraisal of actual worth. What can I do if I feel the appraisal comes back lower than I believe it's worth when I go to refinance??

[Matt Crusinberry]

@Ryan Jackson, Your property needs to under go what people refer to as seasoning. I'm assuming you purchased this property off of the MLS vs. buying it at auction/tax sale/seller financing, etc. I would suggest you give it a 6 months to a year before you try refinancing. You do have the option of disagreeing with the appraisal and fighting it. What we did when we were faced with this situation is... we went back to the bank with reasons why we felt that the appraisal was not accurate. We also put together a folder with evidence that supported our reasoning. The bank agreed with us and order another appraisal.

You could also contact the appraising company and ask what is the time line they typically need for supporting evidence to increase the property's value (comp's in the area). I hope this helps, and if you would like to know how we did this exactly, feel free to PM me. Good luck!