Either it appraises low or your reno budget goes over (as it often will). 

Lenders have mentioned that they have minimums for each loan's underlying asset - either a sqft minimum (750sqft) or an appraisal value ($150k), or both - neither of which those parcels meet on an individual basis. 

It's a residential asset, it will be appraised based on closed residential comps.

The logic behind this is that the appraiser will give more value to the home and you have just affectively financed a new roof.

I ended up going with Foremost, however I was unable to insure the properties for their full appraised value ~ 110-125K each.

For mine, I have to have an initial appraisal done, then the bank will lend up to 80% of the equity I have in the property.

While some lenders like Hard Money lenders may be willing, you may not be able to have access to the property for inspections and appraisals.

Appraised high so I was able to negotiate purchasing the property for less than 5k out of pocket.

Appraised high so I was able to negotiate purchasing the property for less than 5k out of pocket.

Loan can go slightly over appraised value if the need were to arise.