Mortgage Refinance Question

[Chaits J.]

Hello All,

I did my first BRRR and below is my situation.

Purchase Price: 200K

Rehabs : 50K

My mistake is that I bought a duplex that is zoned as single family home in township records.

Now when I am trying to refinance it, appraisal is coming at $230K as appraiser is not considering the 1 bed , bath and extra square footage that is part of the mother in law suite. We were expecting a refinance appraisal of atleast $325K as similar sized homes are at $350K in the area.

My question here is, If I go with private lender for refinance Will they appraise the same as conventional lender or go by the rents and sq footage of the built area?

Rents: $2800 in total.

Thanks all!