Bank financing is very tough for anyone starting out so HML is generally ( unless you use your own cash or cash in your network) the only funding there is.. the goal has to be though moving towards bank financing so you get the best deal possible.. right now I am at 1/2 point and 7% and my bank pays for my appraisals.

We bought the house for $310k and it recently appraised for $400k. 

I also buy it at an inflated price with a rehab credit in order to help with the appraisal when I refinance it.

Example - borrower uses loan to purchase a home in a B or C grade neighborhood for 380k, spends 50k rehabbing primary home, uses 200k to put an ADU in the back, appraisal comes back at 925k. 

We did all the research and comps ourself and did not hire either an appraiser or an attorney. 

Maybe your market is different but in my market appraisers will screw you over on the value of an ADU. 

I’m really rethinking this.There are no comps in the area to support his price but I’m sure it will appraise, usually it does.$275000 with 25% down, taxes $4080, insurance is 3000 yr and rents is $3800 month, Water $400 mth. 

I can do a minimum of 65k for a loan amount but property has to appraise for 100k or more. 

Im not sure how far RWN should go to make things right as of course not doing your own inspection and appraisal is pretty stupid.

Alyssa,I have bene in this business for 20+ years as an appraiser, investor, & agent.