Banks are weird!
So many of you followed by home build thread and barn build thread. I thought it would be a good time to examine my personal finances now that my home build project is now complete. My mission now that everything was complete was to examine extending my personal credit line. I was thinking about going into the home flipping business so some side cash would be needed.
A 2013... 2144 sq ft. Ranch (home sticker price was $ 279k, with my adders almost $ 300k)
1,512 sq ft commercial building (all in for kit, footers, concrete, insulation, doors, and erection about $ 100K)
12.49 wooded acres $ 67k with $ 40k improvements= $ 107k (1300' gravel driveway, pond, $ 10k in drainage piping)
My 2014 bank appraisal prior to buying 6 adjacent acres next door, building a $ 10k deck, and $ 100K barn was $ 290k.
.....today's bank appraisal after additions $ 285k. Guess that shot a big hole in my borrowing capabilities for home flipping.
The moral of the story is add $ 141k into your home and the bank negates it's value by $5k. Try to repeat my build for the bank's appraisal price.
The bank does no one any favors.