Cash-Out Refi Advice for First Timer

[Matt Z.]

Hi All,

I'm reaching out for tips as this is my first time considering cash-out refi. 

Exactly 1 year ago today, I purchased a duplex for $~348k in a fairly high rent area with a top-quality tenant pool. Put down 15% on a conventional loan, couldn't do more because I needed cash for renovations. 4.25% interest w/ ~$50/mo PMI,.

House appraised at $375k at time of purchase. Based on the renovations, and increasing values in the neighborhood (based on recent sales), it should appraise at a bare minimum of $450k.  

I'd like to make sure the appraisal isn't a disappointment, which would thus affect the amount of cash I can pull out and still maintain 20% equity. 

This is an urban neighborhood of very old (100-200 y.o.) homes, many with historical and landmark designations.  My house has a few important & unique advantages that boost rent value & reduce likelihood of vacancy - amazing layout that rivals many new-construction apartments, huge back deck and fenced-in landscaped yard, driveway that can fit 2 cars, high-end boilers that keep energy bills low, massive combined 2nd+3rd fl unit with 3bed/2ba, high-end fixtures, beautiful common spaces, ample secure storage, blah blah blah. 

However, having an appraisal during the winter months poses a few disadvantages: Some remaining paintwork including rear deck refinishing needed outside that can't be done until spring, landscaped yard isn't at its best in the winter (though I have pictures of it), I still have some work I want to do to the foundation/basement, etc. 

Do I prepare some sort of research package to present to the appraiser, with my own comps and such?  Or would this insult the appraiser?

Also, do I hire an appraiser myself then approach lenders for a cash-out refi?  Or do a approach the lender first?

Goal of Cash-Out Refi:

- Have cash on hand for another possible purchase

- Get rid of PMI on this property

- Maintain 20+% equity on this property to avoid PMI and have a nice cash flow.

Thanks,

Matt