BRRRR didn't appraise

[Leigh S.]

Sigh. I just renovated a duplex and have been working with a lender for a cash out refi. Because there were no comps, the appraiser used the Sales Comparison approach and valued it at $95K. I had conservatively estimated that it would appraise for $135k, knowing that the same floor plan on the next street over (converted from a duplex to a single family home) closed last week for $154k.  I tried to challenge the appraisal, using the neighboring home as a comp, but the lender wouldn't allow it since it's no longer a duplex. So, now I'm questioning whether I even move forward with the financing.  I'd love some insight on what others have done in this situation.