question on cash out refinance
Love BP! Its my first time posting, and I have a question I'm hoping someone has an idea on.
We have been utilizing the BRRRR strategy for a few years with good success. Last year, we purchased a very nice 9 unit portfolio from an elderly couple (fourplex, triplex and duplex). They had two year old appraisals of the buildings that gave a total value of 80k MORE Than we offered them (which they agreed to). We thought we were buying with at LEAST 80k equity. The bank said the appraisals were too old and ordered new ones. After lining everything up for the deal, the new appraisals finally came in right before closing and they were 80k less than the 2 yr old appraisals. it was still enough to get the deal done but not what we expected at all.
The wild card in the deal was an unfinished unit in the duplex which was gutted down to the studs and keeping the value of that building low. Only one unit was functional. The unit has been sitting like this for 35 years! We are almost done rehabbing that unit now, and wanting to refinance the duplex to pull equity out for next purchase. The bank is saying they can't release it from the loan because the total value of the other 2 buildings isn't enough collateral if they release that duplex. Any suggestions other than waiting for natural market appreciation?