All Forum Posts by: Rigo V.

@Dylan Thomas thanks man! Glad to see a fellow investor! Hopefully it all works out 

@Dave DeMarinis yes I plan on going back. I think I have a pretty strong case. Hopefully they’re reasonable 

@Theresa Harris thank you Theresa. Yes I plan on doing so. I was told she was very young but I figured her boss and owner of the company would be assisting her.

Hoping they can atleast admit their mistakes and correct it. 

I purchased a property in Dallas PA with a HML for $70k and put $70k into it. As you can imagine it was completely redone. The HML required an after repair appraisal And the appraisal came in at $200k. I went to do a cash out refi and the new appraisal came in at $138k. I seriously doubt my property went done $62k in six months. I also had my realtor pull comps two months ago and he also came in at $195-205k.

Can I appeal this appraisal and what are the chances they fix it? 

I went through the appraisal report and found several in accuracies below

1- The rents are wrong in several different spots on the report. I provided them with leases and they got it wrong. I know this has nothing to do with the value but goes to show how the report is inaccurate.

2- The comps are not the best ones and I'll explain below.

Comp #1- 74 Claude St, Dallas- Zillow link below. This comp is the best of the three but the calc is wrong. This property has been completely redone in similar fashion to mine but as you will see its square footage is only 1300. If we did cost per sf and multiplied it with my SF we would arrive at a price of $198K ($103.85 per sf that this property sold for, times 1915 my SF). This value would make more sense.

https://www.zillow.com/homedetails/74-Claude-St-Dallas-PA-18612/53481397_zpid/

Comp #2- 82 Carverton Rd- Zillow Link below. This property is a triplex so the comp is not the best one to use. Its like comparing apples to oranges. This property is also very dated from what you can see in the link below. I am attaching pictures on my property when it was done in Sept and you can see the quality is quite different.
https://www.zillow.com/homedetails/82-Carverton-Rd-Shavertown-PA-18708/53498986_zpid/

Comp# 3- 1360 Huntsville Rd- Zillow link below. This property is over 2.5 miles away and again very dated compared to my property. This property also has 2 bedrooms less and a 1 whole bath less. I do not believe this is an accurate comp to use. Its like discounting a whole apartment.
https://www.zillow.com/homedetails/1360-Huntsville-Rd-Jackson-Township-PA-18708/53498219_

I purchased a duplex in an LLC because the hard money lender requires it. I am now struggling to get any refi mortgages past a 20 yr. Anyone else have this issue?

@Jake S. yes I am hoping it would come in close to what is was originally appraised at to minimize the cash left in the deal.

@Michael Noto I could understand that but this was a brrr deal so his appraisal was not close to the original purchase price because of the rehab. $70K purchase, $70K rehab,  $200K appraisal. 

Got an appraisal done in may for a brrr deal for my HML. Arv came in at 200K. Has anyone every experienced it being significantly less or more in 6 months once you refi with the bank?

How much did it differ?

@Kimberly Smith did you HML not require an appraisal? most HML will have an appraiser check out the property and tell you what it would appraise for after the repairs are done.

Did it just come in much lower now that the repairs are done?

@Corby Goade I think you misunderstood my question. I am asking if an appraiser looks at the rents and if that somehow subconsciously affects what he appraises the property for.

For instance I bought a vacant property and the appraiser for the HML noted on the appraisal total rents as $2K after the rehab. I rehabbed the place and my rents are actually $2645. Does that make any difference on the value? To me because I wouldn't see my property for the amount he appraised it for since my property cashflows really well even at that price.

Obviously I realize its all values for purchase and refi are based on comps but wanted to see what community thought.

So I know for 1-4 unit properties the value is based on comps but does the amount that the units are renting for have any affect on value? Even subconsciously on an appraiser's mind?