Tucson Investors. Help Me Determine Property Value.
Good morning,
Well I am in the beginning stages of refinancing my 4-plex in Tucson, AZ. I purchased the property using an FHA loan and 3.5% down in July 2014. I paid $152,000 and currently owe $142,000. In 2014 when I purchased the property, it appraised for $165,000.
I have noticed some appreciation in Tucson and am hoping to get out of the FHA mortgage so I no longer have to pay PMI. I also want to move from a 30 year mortgage to a 15 year mortgage. The lender was unable to find comparable sales in the immediate area and I estimated the property had a value of $200,000. Of course I am getting an official appraisal as well, but at a cost of over $700, I would really hate if my property came up short.
To give you an idea of it's location, it is west of I-10 and north of Speedway in the El Rio Acres neighborhood. The 4-plex itself is two separate duplex buildings. Each unit has 2 bedrooms/1 bathroom and approximately 800 square feet. Each unit also has individual fenced in back yards and a laundry room. All units are electric and have A/C. Rents are $550/month per unit.
In terms of properties listed on the MLS, I haven't seen many 4-plex properties listed for under $200,000 in the Tucson area in a while. Please help me estimate what this property is worth so that I know if I am even wasting time and money trying to refinance.
Most Popular Reply
Anthony, appreciation in Tucson is more of increase in a recent sales on similar properties In same Neighborhood. Other than that I doubt any appreciation without putting equity in to your property. At the same time, any refinancing will require an appraisal by independent party. So even if you spend money on appraisal at this point, you will need to do it again. You can also get broker price opinion which will be very helpful to you.