Vote needed! Why 'o why does thou appraisal come inneth so low?

[Jc M.]

I need your wisdom and vote please.

So, a year ago I bought a little duplex in North Collinwood, Cleveland for $65k cash, slapped a new roof on it, upgraded the electrical with new panels and meters, fixed some knick knacks and the recent appraisal came back for only $66k. The upgraded electrical is just a footnote on their report and the incorrectly marked the roof condition as "average" instead of "new". The nearly exact same house next door sold for $72k. Another down the street went for $107k. Investors buy old houses and fix them up to add value - why isn't this being recognized on the appraisal? 

I cannot continue with the cash-out refinance with this lender because the loan amount is now less than $50k based upon the appraised value. Which of the following should I do next?

1. Raise hell - already did that. The appraiser refused to amend their report.

2. Pay for a new appraisal - Ugg, more $$$.

3. Find another lender  - <$50k loan with fewer lenders and less favorable terms.

4. Fix more to raise value - units still need updating and rents are below market. Only takes more $$$.

5. Sit on it like a mother hen and wait - continue to stabilize and try to cash-out refi again later. 

6. Stop buying tiny properties with the hopes of pulling cashout in <1 year.

6. Start buying more tiny properties and get more creative with financing.

8. Plow money into the lotto - screw real estate.

Thanks guys and gals!