Appraisal for house with mother in law suite

[Jacob Albright]

Hi I’m still new and learning as much as possible. We bought a fix and flip for 78000. It has two house on the property one is a mother in law suite. We fixed this one up and put 23000 into it, it was pretty bad. Wanted to get some of that cash back to fix the main house up next so I refinanced for cash. The appraisal just came back and was saying the house is only worth 84000. It’s seems like they compared only houses that looked like the main house and didn’t go off of anything for the mother in law suite. I’m just wondering if anyone has ever ran into this and why fixing up the mother in law suite wouldn’t add any value. Thanks for the help everyone!