ARV Comps and Cash Out Refi on Small Multis 1-4

3 Replies | Houston, Texas

Could someone please give me any advice on finding ARVs for smaller non commercial multis. 

I purchased and rehab a 4plex in Richmond, Tx for about 160K all-in. It's pulling in +$3,000/month in rent but when I went to do the cash out refi, it was valued pretty much at what I put into it. Appraiser said because it was not valued on the income it was producing as it was not a commercial property and more off comparable sales in the area.

Is there is a way to find/estimate the ARV somewhat accurately for these types of properties? There are barely any comps to compare them to if any.

Looking for more multis but having difficulties analyzing these properties.

Thanks!

@Andrew Dao You can have an agent or broker pull comps. I do this before a refi so I know about what the numbers will be.  Plus if the appraisal comes in too low you would have evidence to support your arguement

I'm an agent in Houston/Katy area and I'm interested in expanding my portfolio to include multi family in the future. I'd be happy to assist in pulling comps for you if you don't have an agent you're working with. Maybe I could learn a thing or two along the way while assisting you more accurately evaluate ARV.

@Andrew Dao as others mentioned, your best bet is having an agent pull comps. That's what I had to do for a 4-plex a while back. Another thing was comps were hard to come by in the community, so we had to broaden the area to other communities. Also had to go back at least a year and "adjust for appreciation" in the community.