Hi all. I've found this ground floor apartment which has a very awkward floor plan. It's been 2 years and no one has bought it. If I manage to buy it at a discounted price, how will the bank value it?
So, this place is about $430k. If for some miracle, I manage to buy the place for $300k, and get a loan for it, the bank will value it &300k max, right?
And if I refinance it a few months later, how will the bank value it? Will it vie it based on market value, or based on my purchase price?
Reason I'm asking is because I am hoping that buying it at discount will give me immediate equity so that I can use it to do some Reno so that the layout will be more functional. Then sell it.
Thanks in advance.
So, this place is about $430k. If for some miracle, I manage to buy the place for $300k, and get a loan for it, the bank will value it &300k max, right?
And if I refinance it a few months later, how will the bank value it? Will it vie it based on market value, or based on my purchase price?
Reason I'm asking is because I am hoping that buying it at discount will give me immediate equity so that I can use it to do some Reno so that the layout will be more functional. Then sell it.
Thanks in advance.