What Adds Value To Multifamily
I purchased three multi family homes in the albany, ny area. I am stuck with PMI and would like to refi in a few years to buy more property. What adds value to multi family homes - is it any different from single family homes?
more rental income
I would update the kitchen and bathroom if it needs it and raise the rents.
I recently bought a duplex, and the appraiser used the gross rent multiplier from similar properties to help determine the value. I dont remember the exact numbers, but an example would be a gross rent mulitplier of 107. You then multiply this by the monthly rent, $1200 for a price of $128k.
The way you make the property more valuable is by raising the rent. In the above example, every dollar you can raise the monthly rent, you would raise the value by $107. Raise the rent by $100 per side for a total of $1400 per month and the property is now worth $150k, 22k more.
Of course buildings with less than 4 units dont rely on this exclusively the same as larger buildings do.
Ryan
I have never heard of an appraiser using the gross rent multiplier for housing with less than 5 units. I think they should...because the more they are renting for...the more valuale they are. This method is usually reserved for the 5+ unit properties.
To increase value, you will want to look at making improvements that cost you less than the perceived increase in value. For example, building a deck that might cost $6,000 but will add $10,000 in value on an appraisal report.
you might want to reset your expectation for the duration of the contingency. Around here it more like 10-15 days for physical inspection.
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Snorkel Molakini!.. and if you have time go to Hana. Always wanted to find the red sand beach myself but one week there is not enough time. Sorry had to throw in my two cents.