Appraisals and Refinancing in Providence/ Rhode Island

[Fan Bi]

We just completed two refis in Providence but the appraisal didn't come back at the target and I'd love to hear any stories from local investors who've followed a BRRRR strategy.

Hollis St -  Realtor.com $207,000,  Zillow at $274,000,  Trulia at $261,000, appraised for $230,000. It's fully occupied four-unit that rents for $3,675, so even at $270,000, it still satisfies a 1.4% gross yield. 

Harrison St -  Realtor.com $198,000,  Zillow at $262,000,  Trulia at $200,000, appraised for $200,000. Also, fully occupied four-unit that rents for $3,200, so even at $240,000, it still satisfies a 1.3% gross yield. 

The worst part was both appraisers used comps from over a year ago, and in a hot market that makes a big difference, and I'm confident they were anchored on the purchase price  (both acquired ~15 months ago) even though we invested in upgrades. 

Would love any thoughts or stories.

[Jason Lee]

Zestimates, etc are worthless. Have you run your own comps? Ask for new appraisals and cherry pick your own comps, then meet with the appraiser and hand them your comps. As you walk through together point out all the upgrades you've made. If I have a deal (representing the buyer or seller) where I think the appraisal will be a challenge, I go and try to make my case. They usually appreciate the extra info and are happy to take my comps. If you think there are comps that could hurt you, then point those out too and give reasons as to why those are not good comps for you. If you have an agent then they should be doing this for you.