I haven’t had the house appraised, but I’m guessing we have around 150k in equity. 

The conventional mortgage lender sent an appraiser who realized that there is an issue.

The purchase price is $100k.The property appraises for $100k. 

Key factors include your experience level, credit score (600+), down payment (10-30%), property appraisal and ARV (65-70% of ARV), project scope and budget, exit strategy, cash reserves, market conditions, and lien position.

I BELIEVE you would be ok with a BPO (ask a realtor how much they would list it for.) and an appraisal.

I see a lot of people say they want to go local, and while I understand the sentiment, one of the biggest myths I see perpetuated in lending, or insurance, or appraisers, etc. is that local is better. 

No appraisal required and very fast funding, competitive interest rates (they get better with your experience as a rehabber and number of loans with the company. 

I could wait to do my renovations and just lay down new flooring for now and advertise for rent while waiting to purchase the other side, but that could hurt my appraisal, and refinance amount.

Value as of 11/22: $105K (appraisal)My goal is to pull cash out to rehab.

Side note, when they were selling the house they considered this space the 3rd bedroom, but during the appraisal, they considered it a loft.