Appraisal/Refinance - Duplex & 4plex - Tulsa

5 Replies

Has anyone recently refinanced a duplex or 4plex in Tulsa? I am in the process of refinancing one of each and just wanted to hear what others have experienced as far as how the appraiser went about determining the value. There aren't many of these types of properties in Tulsa and it seems like most people hold on to them once they have them. The few that have sold were in such disrepair when they were purchased that they don't provide any useful data to determine the value of a completely remodeled property. I have also heard that for a unit this size the appraiser will not use rental income to determine the value. I'd love to hear what others have experienced going through this process.

Appraisers for residential property will look at recently sold comparable property and take the averages of those sold property to get you your appraised value. 

Not in Tulsa @Bobby Spurlock but I recently attempted to refinance a duplex. Very disappointed as the bank's chosen appraiser pulled 2 comps from a different county (worse as far as school systems, property value) etc. I even went through the appeal process and provided comps in the same neighborhood to no avail. Hope you have better luck!

I wonder if it would help getting it under a commercial loan, maybe they would be more apt to do an income based approach, take my 8 condos for instance, if they did a comps approach they would be way lower than income, however the appraisal being ordered by my commercial bank may have swayed the appraiser because the appraisal on my line of credit was much higher than it would have been if it was just a single condo. A commercial loan however would be a 20/yr note.. something to think about

@Bobby Spurlock You will often hear that anything that can be classified as residential (1-4 units) is limited to residential guidelines. However that is not always the case. Discuss it with your loan officer and ensure when the appraisal is ordered, the appraiser is made aware that it is an investment rental property and to please utilize both a sales comparison approach and income approach in the appraisal. Additionally, the loan officer should provide the existing lease agreements for the appraiser to review. I did this recently on an SFR rental. It cost a little more for the appraisal, but gave us options. The appraiser did both approaches, and in this case the comparable sales brought in a higher value than the income approach, so he went with that number. I also recently saw an appraisal on a 5-plex that did the same thing, but the appraiser averaged the two values. The point is there is a ton of information out there passed along as rules, facts, or law; when in fact they are merely a particular company/lender’s internal policies, or worse, the old “this is just the way we have always done it”. Do as much research as you can on your own so that you have an increased “BS” detector. Good luck!

Thanks for the input guys! I actually met the appraiser at the 4plex this morning and he did say he will take the rental income into consideration. I gave him a copy of our signed lease agreements. Fingers crossed!

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