Cash-out refi questions Milwaukee area

[Scott Holoubek]

Hey BP community- I'm looking to refi/pull cash out of a duplex that I've owned for 14 months. After doing major work, it's been fully rented for about 10 months. I don't currently have a mortgage and lenders I've talked to have said that I can really only expect to get 75% of the total money I've put in (purchase price + cost of renovations). Is this what others are finding? I was hoping I'd be able to get 75% of appraised value, which should be higher than money invested (based comps I've seen and the rents it's now generating.)

Thanks in advance for any info!

[Marcus Auerbach]

@Scott Holoubek, let me send you some names. The issue with cash out refi's often is that the appraiser does not have a contracted price from an accepted offer ("..what a seller and a willing and able buyer have agreed to in an open marketplace"). 

A lot of our properties are very similar, yet appraisals come in 10% plus minus FMV; it all depends on the comps they choose. So it is a good idea, to give them some reference points, but many of them don't like to be told what the result should be, so you are walking a fine line.

What I do is run a CMA with carefully selected good comps and hand that over or leave in the kitchen with a friendly note.

VERY IMPORTANT: whatever you do, don't look directly at him!