How Are 1-4 Unit Rental Properties Valued?
How are 1-4 unit rental properties valued? Are they valued like you would do a SFH where you compare it to comps or are these properties valued strictly off of the income they bringing in. I know that anything under 4 units is considered residential anything above is commercial. Also has anyone ever have to do rehab work to a property with the tenants still living in it? How diffcult was this? How did you overcome some of the challenges.
Is it possible to get a 3 unit with 0% down, like a 80/20 loan perhaps??
Depends who's value you mean. 1-4's are valued by their comps by lenders for the most part, for me, I value them by their income.
I was just thinkin of lenders. I am looking to gettin a 4 unit fixing it up and renting it out and refi to cash out so I can immediately be able to continue to invest
The properties will be valued on comparable sales, income, and possibly cost if the property is newer. Going to try what kind of rehab work!??!? That is the key question. new carpet...yep....new kitchen....nope. Basically if it takes more than a day I'm not going to try to have it done until they leave. It just turns into a pain...if you make it inhabitable while they are leasing, in my state, they can get out of their lease or demand to rent another unit/etc.
I do not have a particular project to reference but I would say comestic work. Nothing large like structural or remodeling. Just want your ideas with how comestic repairs have gone over with tenants that are currently staying there when you are doing these repairs. Also does anyone know of any good refi lenders in atlanta that do not have strict seasoning requirements?