Refinance Challenge on Buy and Hold Purchased in 2022

[Jeremy I.]

I bought a rental in 2022 through owner financing and used the realtors CMA to value the house. The note is due in a month and I've been trying to refinance the house and the appraisal came back approximately $150,000 lower than the purchase price of the house, which is causing me to have to bring approximately $65,000 to close. I'm trying to determine what my options are, and how to proceed. I've thought about hiring a lawyer to renegotiate with the prior owner, approaching a wholesaler, or allowing the house to go into foreclosure. All bad options. Any help will be greatly appreciated.

[Jay Hurst]

Quote from @Jeremy I.:

I bought a rental in 2022 through owner financing and used the realtors CMA to value the house. The note is due in a month and I've been trying to refinance the house and the appraisal came back approximately $150,000 lower than the purchase price of the house, which is causing me to have to bring approximately $65,000 to close. I'm trying to determine what my options are, and how to proceed. I've thought about hiring a lawyer to renegotiate with the prior owner, approaching a wholesaler, or allowing the house to go into foreclosure. All bad options. Any help will be greatly appreciated.

I see in your profile that you are seeking investors to avoid hard money lenders. I am not not trying to pile on here BUT if you had a lender on this trasnaction you would likely not be in this place. Properties in the price range we are likely talking about have not lost 20-40% of value. The appraisal that a lender would have required you to get when you purchased when have likely shown that the interested party CMA was garbage. Sure, lenders charge for their services but they also look out for you. A bad deal for you is a bad deal for the lender too.