Exit Strategy Question

[Cornell M. Dayne]

If I find a value-add type of deal below market, and in 6-8 months after the purchase I manage to remodel the building, raise rents, and shrink expenses.

How easy is it for the appraiser to step in and appraise it for a higher value? I guess my hang up is tied to the fact that when purchasing a property the buyer and the lender wants to see a solid history of rents of 3 years or more.

Why is the lender so much more lenient for a refinance since the rental history at that point would only be 3-6 months old?