Low Appraisal - Should we Finance 50%???

[Maura Paler]

We have an accepted offer on our 4th Vacation Rental property in a small Adirondack town. 

Appraisals often come in way below selling price for vacation homes here due to the type of comps - there are 2 kinds of homes, vacation homes and local homes, with GREAT disparity between the two, but they are not distinguished in appraisals. 

So, this deal is $260K (there was a bidding war for it, I'd thought it would go for $300K), lakefront, turnkey, we expect $45K gross income. Expenses approx $8K for utilities, $15K for mortgage, tax and insurance. 

The real estate agents appraisal came in at $189K! So as an investment property our bank will finance 70% of appraised value, if the bank appraisal comes in as low (or lower!) our out of pocket will be about $130K. We can do it, but....wow. 

Not sure if this makes sense and having a hard time wrapping my head around it. 

Any creative financing suggestions? Thoughts?