All Forum Posts by: Kevin Kinton

Just to clear up any possible confusion: An appraiser is not confined to only a 10% adjustment for condition. The underwriting guidelines reference 10% adjustments and anything above that will require substantial support.

Ideally that support should be other recent comps in similar condition. If they are not available, adjustments above 10% should be supported by "paired sales analysis". Yes, it's more work for the appraiser and not all will go to the trouble, particularly these days of minimal fees, but the good appraiser's will.
It's all about finding evidence of market reaction to the condition of the subject. (Hint: appraiser's can make time adjustments in order to use older sales with similar condition in a paired sales analysis)

Thanks for the reponse.
I'm just looking to narrow my focus on a handful of cities to research.

Jon,
You wrote "Find a good area, one where you can buy a house that rents for $1000 for no more than about $75-80K. If you can't find that, don't buy rentals."
In which cities can you find these?

"Influencing" the appraisal is something the lenders are very concerned about these days. The lenders rules are becoming a lot tighter with regards to their polices........

How does Panama compare to Costa Rica?

Cap rates are the way to value larger income properties, just be sure to do your own due diligence to establish the cap rate.

Be prepared for a frustrating negotiation with the lender if you pursue a short sale, the lenders often take forever to conclude the sale......

best of luck, let us know how it turns out.......

All good advise. Don't forget to have your exit plan well thought out before you buy.

With apartment buildings there is no doubt that doing your own due diligence regarding comparable property rents, expenses and sale prices is the key. It's a lot of work but it will pay off.