Low appraisal on refi- advice needed
Hi All,
Hoping for a few opinions. I have a duplex in a very trendy and fast growing area on the west side of Cleveland (Gordon Square). I bought the place almost 5 years ago.
This year I decided to update both units significantly. Adding all modern amenities, new flooring, paint, New lights, opened walls for an open feel, reconfigure the kitchen, installed a/c, dishwashers, laundry, etc.
I am getting $1100 for my up unit and have a deposit collected for the down unit at $1000 a month. So $2100 total. Property has a second parcel with 2 car garage as well.
I am in the middle of refinancing and the appraiser is saying my market rent is only $1700. Then is using this market rent as support for an appraisal of 162k.
Another place with similar location and Conditon sold for 173k with no second lot or 2 car garage and rent was only $1750.
They didn’t use a comp 2 short blocks away that sold for 175k with a more similar lot with a large garage. It needs completely gutted. One unit is vacant and the other with a long term tenant of 10 years was renting for $525 a month.
Before rehabbing my property it was renting for $1500 a month and a well respected investment friendly realtor thought I could sell for around 160-165 before any updates.
The other 2 comps used are in the wrong direction of the heart of this area. I am fine with them being used since they are not far either but they should be offset with properties slightly closer as well. These comps are renting lower, no garage or second lot(highly sought after from tenants in Cleveland of all places in the densely populated city), and worse location.
I already disputed once and they did come up from an initial value of 155k to 162k. Any thoughts or suggestions are greatly appreciated.
I planned to do some debt consolidation and buy another property or 2 with the cash from the refi.
Cleveland refinance refi appraisal brrr