Appraisal came in low...now what?

[Frankie Woods]

I have three rental properties in STL that I purchased back in 2015. I wanted to finally attempt the BRRRR strategy and perform a cash-out refi. However, the appraisal came back $20k below what I see as market value. This puts me at about 60% LTV currently. What should I do? Chuck it up to a bad purchase? Hire another appraisal?

[Amanda G.]

The bank appraisal will cost you $400- 600 (in my area, anyway). Consider asking a friendly real estate agent to run you comps on recently sold places - not the asking price but the actual sale. If those still come in low, then you know not to bother trying a BRRR at the moment. There might be a LOC option that could get you some of your funds, if you shop around.