Stuck At the Second R in Brrr

[Shara Carlton]

I was trying to do the Brrr strategy with purchasing my first property. I bought for 60k with an HML, it was already rehabbed, so we just repaired plumbing and a few holes in the walls, now, we are trying to refinance and cannot. We bought the house as a 4/2 but it is appraising as a 3/1 because the extra room and bath do not meet building permit requirements. So, now the value is only $15k more than what we bought it for and we cannot find a lender to get us out of this hml. Any suggestions on how to find a lender for this project? I was looking into B2R, but we don't have enough equity to qualify. How do i present my loan request to a lender to get the refinance based on rental income, employment income and credit only, and Not solely on the value of the property? loc maybe??