Having trouble with my cash out, please help

[Philip Joseph]

I am trying to pull money out of a property that is completely paid off and I'm running into issues.  My normal institutions would not do a home equity or cash out for a rental, so I decided to try Rocketmartgage (RM).  RM set everything up for me to get $60k, but the property just appraised for $73k (disputing this as comps have sold for $85-$100k).  Once the appraisal came back, RM increased the closing cost by $3k, so now it's almost $7k closing cost for a $60k loan.  Oh and they would only do a 12 yr loan period, 15, 20 or 30 years was not an option.  I'm about to call it off, but before i do, does anyone know another option?  Do you think i would have better luck with a local bank?  Note, I'm willing to take to a smaller loan (i.e $50k which is 70% of the appraised value), but RM said that is too low for them.  

Philip