23k to refi??!!!!!

[Raquel Brown]

I’m at a total lost right now! 
l was just told I would have to pay 23k to refinance a portfolio rehab loan on two properties. 
they are only lending 70% LTV, my rental rates are $1785 and $1985, but the market rents in the areas are only $1400/1450.

I really wanted to keep these as rentals so I’m trying not to give up. 

The interest rate they gave me at us 7.70%, 5/1 ARM, rent to debt service ratio is 1.21

My credit score is 672. Loan amount is 283,500 for the two properties, origination fees are around $4,300. 

Property 1: ARV: 185k appraisal came back at 179k

Property 2 ARV: 230k appraiser came back at 226k

any insight will be great. Or lender recommendations. My goal was to do a rare and term. Wasn’t looking for any cash back in this market but definitely wasn’t expecting 23k to refinance these two deals.