Nice Home in a Rough Neighborhood Appraisal?

[Stanford Walker]

It's just a quick question. I was wondering how nice homes in rough neighborhoods would be appraised for a refinance. I came across a property with a lot of potential that I could possibly BRRRR. The only problem is that it's in a rough part of town. Should I pursue this or not and how would it be appraised?

[Michael Noto]

@Stanford Walker There won't be much of a difference in how your property is appraised as compared to an average property in the same neighborhood. That is one of the big things with BRRRR, very rarely do you get proper "credit" on the appraisal for making the home a lot better condition wise then the comps. The appraiser is walking your home, but not the comps.