Challenging Commercial Multifamily Appraisal

[Dustin Beam]

Hi Everyone, I did attempt to search for this within the "MF and Apartment Investing" forum specifically, but that function either doesn't exist or I'm too dumb to figure it out :) . I got a lot of results in a general search about SFH, but don't think that will apply directly. So I apologize in advance if this was discussed recently.

My partner and I have a couple complexes (16 unit and a 32 unit) that we are looking to do a cash-out refinance. The appraisals came back where they used a CAP rate of 7.5% to value the property. We felt that was a high CAP rate in the current climate. I reached out to a person I know who works as in investment sales at a local broker and asked his opinion on that rate. He said that CAP rate is basically unheard of right now.

My plan, as of now, is to pay him to provide "comps" of similar properties in the area showing that current sales CAP rates are lower these days and cross my fingers and hope the banker and appraiser sees it my way. I also get the feeling that it may not work.

Any advice on the best way for me to challenge this appraisal?

Thanks!

Dustin