Bay Area, CA · Member since 2019 · 9 posts · 1 vote
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?
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
6y
@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.
Hello Stanford! The type of property you get, the neighborhood will play a part of an appraisal know matter what kind of product you provide. Rarely is their use of a property that can over come the surrounding neighborhood. The buyer or renter will use that as a negativity too, most of the time. It might be available because of that too. Good luck to you!
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
6y
@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.
Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Stanford Walker Stack your investing cards in your favor and find the bad home in a great neighborhood and pursue that :) Location, location, location!
Real Estate Agent · Cleveland, OH · Member since 2019 · 359 posts · 295 votes
6y
@Stanford Walker You really need to look at comps. Are there other nice houses that sold in the rough neighborhood? If not, it indicates that nice improvements would be an overimprovement for the area.