Appraisal came low after the home improvements are done

[Madhu Kumar]

Hi,

This was my first question in BP community. Googled a lot but did not find an answer. And here I am trying my luck.

I bought my first rental SFR property for 35k, put in another 15k of rehab work into it. The place was mess when I bought and was renting around $600. Added new flooring/carpets, paint, kitchen cabinets, appliances and many more. A retired couple loved the home and rented for $1100.

Applied for refinance within 4 months of buying the home with PenFed bank and opted for full appraisal . The appraised value of the home came to 35k. I checked the report and the comps used were all around 35k and am sure those are distressed properties like when I bought mine. I do not see anything mentioned about home improvements in the appraisal report.

My questions are

1. Where in the Appraisal report can i check for, if the appraiser considered home improvements to get its value?

2. Or, the appraisal is nothing to do with the home improvements and they just look at the sq ft, # of bed rooms and bath, fireplace, porch etc

2. Any suggestions on my situation?