Refi with low appraisal value

[Kevin Larson]

I completed a Brrr earlier this year. When I refinanced the property to pay back my private money lender the appraisal came it at $105k. My projections and comparables in the neighborhood supported an appraisal at $115-120k. The loan I took was fixed for 10 years at 5.35% with an ARM after 10 years at 75% LTV.

After 7-8 months of property values increasing and more comparables to support my $120k value I decided to refinance again to get into a fixed 30 yr with a 4.8% interest rate and to pull some equity out of the property.  I paid the lender a fee of $650 for the loan.  The appraisal came back at a ridiculous $60k value.  I did a rebuttal providing a full punch list of all the improvements to the property, comps that my realtor ran that support my $120k value.  The lender came back with a change to the appraisal that now states $85k.

To the savy investors out there and Brrr experts, if you were in my position how would you proceed?

Would you start over with a new lender and try to get your $650 lender fee back?

Have a strategy that makes sense to continue with the current loan?

Stop the loan and wait to see what happens with the market in the future.

Thank you in advance to the BP community for your reply and advice.

Best regards