Purchase price: $250,000 Cash invested: $62,500 Brand new build: Appraised at $310,000. at closing the builder financing and buy down of 1% put the 30 year fixed financing at 5.75% investor financing with 20% down.

Cash out refi: When you cash out refi the property, the BOR will most likely increase the tax to match your appraised value.

The bonus is that it appraises for more than you have put in. 

FYI-  for a long term rental, a lender will consider the income right away (75%) if there is a signed lease agreement or an appraiser' estimate STR/MTR Income Must Show Up On Your Tax Returns- Before a lender can recognize that income for underwriting to offset your DTI, they must see it reported on a schedule E on your most recent tax returns. 

Also, is it the assessed value that's $225k or the appraised value?

And then it appraised for $240,000.So we had nothing really invested in the deal at that point but then we operated it for a year as a LTR before converting it to a STR.

These guys can be larger and clunky when it comes to appraisal turn times as well as overall communication.  

The price of the property was perfect and it has already appraised higher since purchasing.

If they require an appraisal, they will likely cut the loan amount, too (standard LTARV is 70%). 

They require you to make up the difference if the property doesn’t fully appraise.