Is an appraisal required for a fix and flip lender?
No, in most cases an appraisal is not required. Since most fixer uppers are damaged in some kind of way, an appraisal isn’t necessary for a lender in Austin. However, a home inspection will be required to confirm the condition of the property.
What is after-repair value?
Texas lenders tend to use local comparable properties to predict what the after-repair value is after renovations have been completed on the subject property. They will take into account the materials you plan on installing, such as granite. Additional square footage or bedrooms increase the after-repair value (ARV).
Is a general contractor required for fix and flips?
Yes and no. A general contractor is required to do the work or sub-contract the rehab work. However, you are able to do some or all of the work providing you pull a permit when necessary.