Question about DSCR, why is my appraisal so much lower than my rent collection

[Alex Frantzis]

So I closed on a 4 unit mutli back in december that was 75% occupied, on MTM and well below market.  I bought for 425k in one of the best neighborhoods in Cleveland, great rental demand, close to city center and walking distance to everything.  I put in about 90k in renovations and upgrades and now fully occupied (last lease is being signed today) collecting $7200/month in rents, with all tenants now on 12 month leases.

I am in the process of refinancing under DSCR but the lender's appraser came back at $575k valuation, as I am looking to cash out on this one.

My question, is it common for an appraisal to come in that low, especially with 7200 in rents a month coming in?

Thanks for any guidance, just wanted to see if it was worth shopping around or just closing it at 575k valuation and moving on. 

[Matthew Crivelli]

Appraisal is not based on cap rate. They are using sale comps. If it was a 5+ unit building cap rate would come into play.