4-Unit Short Term Rental- great cashflow- no comps to refi?

[Jill Haselman]

Bought a 4-Unit ($520K), gut renovated with my cash, fully occupied, furnished vacation/short-term rentals (with a waiting list).  Here is the property

Booming area of Delray Beach, FL in best location possible.  Cash flow is incredible, as predicted.  Recent news article refers to my street and the neighborhood it's in as "the next hot spot" and that "land prices have doubled in the last 12 mos" (they have).

Seeking a cash-out refinance ($700K) and all numbers look great, BUT lenders and Appraisers don't have an identical comp (that's why it's the hottest little boutique spot in town... duh), so they are stuck and don't know how to value the asset or the business or which way to go. When will banks and lenders understand actual markets and investments vs. using outdated generic formulas that don't fit a specific deal?

Issues:

• 4-Units vs. 5+, so it's "Residential" vs. Commercial, but doesn't operate as residential, nor should it.
• Short-term leases (with 11 mos history) vs. annual leases.  Bank statements to prove the income.  I would make pennies on the dollar with annual leases  AND people with annual leases can lose their job or leave overnight, so where is the security in that model?  Q1 of this year had average gross monthly income exceeding $30K/month!
• No current identical comparables- that's why it's such a good investment. Two strong comps under contract but not closed yet for $1.25M and $1.4M. Neither renovated. Closing dates are unknown per their Agents, largely because the area is such as massive building zone and they are held up in permitting. SFR being built across the street for $1M+. Shacks (tear downs) that were listed 1.5 years ago at $450K are now listed for $900K just for their lots. It's unreal, but I can't get an Appraiser who "gets it".

I need to refi my HML, which is already on an extension, and get my cash back out. I have already lost two other deals in this hot area because I have my hands tied.

I'm also not new to real estate investing and have great credit.

Why is this such a challenge?