House appraised for more than expected- should I change my strategy?

[Katie Camargo]

Looking for advice as I am a relatively new investor: I found a house with positive LTR cash flow projections and negotiated the seller to under-asking ($340k). Our plan was to use a DSCR loan to finance (25% LTV). I just received the appraisal back and the house appraised for much higher than even I expected ($407k). For those of you that are more experienced in this space, would you change your financing approach based on this new information? Appreciate the advice!

[Jay Hurst]

Quote from @Katie Camargo:

@Nicholas L. and @Jay Hurst - thank you both! I'm planning on putting 25% down because that is a requirement of the loan. It's a 2-unit house, if that matters at all. Does that help? 

 @Katie Camargo   What we do as a lender on these type of deals is what we can an "as-is 2 step". We would lend 75% of the as-is appraisal on step 1 which is a short term bridge loan. So, in your case, that would be 75% of the 407k which would be 305,250.  Assuming a 340k purchase price that would be 34,750 out of pocket.   Then we turn around and refinance into a 30 year fixed on step 2.  So, this cost a bit more in closing costs BUT your are out 34,750 plus closing costs instead of putting down 25% of the 340k which 85k plus closing costs.