Appraisal Issues with BRRRRR

[Carmen Pellegrino]

Ok feeling very frustrated. Need some advice. I am in the refinance phase of the strategy. We did the remodels got the properties rented did almost all of the work ourselves. The rent is good and return is not bad but our appraisals for refi came back way under what I was expecting. We had a realtor walk through and give us her estimate on selling price plus checked comps but basically the value went up the amount we put in. This means most of money will not be able to be pulled out. Any help or ideas around how to deal with this? Example one SFH purchased for $48000 remodel included new kitchen, new appliances, new flooring through most of the home(original hardwood in areas not replaced) new bathroom, rebuilt deck, completely rebuilt porch to include new roof. Put about $20k in and a ton of hours. Comps in area going for 80K-110K. Appraisal came back at $65k.....House is rented at $950 month tenant pays utilities.