Appraisal during rehab or when the house is fully complete

Appraisal during rehab or when the house is fully complete

Rental Property Investor · The USA · Member since 2020 · 7 posts · 1 vote

I am currently rehabbing the basement of our rental property to add in an additional bedroom, bathroom, and about 550 sq ft of living space. The frame is up and we are waiting on the electrical inspector to come in and take a look at everything. They seem to be taking a while to get to the property. What I would like to do is start the refinance process with an appraisal. Should I wait until the project is complete? 

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  • Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    5y

    @Michael Lynch, you will get the best value out of the appraisal waiting until complete. They will not give you the value until complete, unless it is specifically an ARV assessment. But banks will only value what is there on a traditional mortgage.

  • Real Estate Agent · San Antonio, TX · Member since 2021 · 65 posts · 21 votes
    5y

    @Evan Polaski said it perfectly. The bank will not give you a accurate number until the the rehab process is complete.

  • Real Estate Agent · Tempe, AZ · Member since 2011 · 1k+ posts · 543 votes
    5y

    Depending on the loan type you want to refi into, some will use the ARV for the refi loan.

  • Rental Property Investor · The USA · Member since 2020 · 7 posts · 1 vote
    5y

    This information is golden. I have been waiting to refinance, but also want to complete it as soon as possible. In order to move onto the next project.

  • Real Estate Agent · Tempe, AZ · Member since 2011 · 1k+ posts · 543 votes
    5y

    You can certainly refi in the middle of the rehab and can us the ARV for the loan amount if you refi into an FHA 203k or possibly a conventional rehab loan such as Homestyle or CHOICERenovation.

  • Rental Property Investor · The USA · Member since 2020 · 7 posts · 1 vote
    5y

    Thank you guys so much for the information. I will 100% wait until the rehab in finished. 

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