Cannot get appraiser out to 2-4 unit multi-family property

[Alex Knott]

Hey BP, 

I would appreciate advice on getting an appraisal completed for a 2-4 unit multi-family property. So far we have not had any luck with our lender(s) successfully getting past this barrier in the closing process.

As for the details:

I partnered with two friends and we got our first rental property (triplex) under contract at the beginning of August. We have an agent helping us, we had conventional financing approved, our diligence was ran, and the seller agreed to our terms. We were set to close in a little over a month at the beginning of September. 

In mid August, our lender (big name brand bank) tried to get an appraiser out there but could not get an appraisal scheduled. They tentatively scheduled one for a month later but said they were uncertain if it would even occur. We decided to go with a new lender that our agent recommended due to this uncertainty and slightly increased our EMD in exchange for an extended closing date. The new lender was confident in closing at the end of September.

Fast forward to now, the new lender was just notified today that the scheduled appraisal for this week has been cancelled ("for reasons out of their control" was the appraiser's description for cancelling).

At this point my partners and I are confused on what to do and why this keeps occurring. Would love to get advice on how to overcome this hurdle in order to close and to know if anyone else has been running into this issue.

Thank you in advance.

[Jason Hirko]

This is a great reason to close with hard money, and then refinance with your big bank at their leisure!