Cash out refi appraisal issues...
I want to preface this by saying I'm very new into real estate investing. I purchased my current home and started rehabbing and improving with my own credit and cash and the numbers listed below aren't ideal for a typical house hack or brrr strategy, but I started reading about and getting interested in house flipping this year. I've had all of these improvements done before then and am now trying to pull out the new equity along with some of my money back from the upgrades to start flipping.
I'm currently going through a home re-finance with my bank to pull out the little cash equity I have already put into it. I purchased the house barely 3 years ago at the low-end of the market for about $110,000. Over the last three years I have put in about $25-$30,000 in home improvements (New windows throughout the entire house, updated kitchen all, new appliances and countertops, had entire house polyurethane injected insulation to improve efficiency, massive landscaping improvements, along with other misc updates).
Comps in my area are going from $150k-$175k, including a house 8 houses away identical to mine, without the updates, just sold last summer for $160k.
I went into my personal bank because they offer a "easy home refi program" with only $299 in closing cost.
Everything went great at the bank, my wife and I have near perfect credit, so they went ahead and scheduled an appraisal. One week later I get a phone call from the bank saying the appraisal came back from a drive-by appraisal at $164,000. This was good but I still thought I could get more if they scheduled a walk-through and actually saw all the work that was done instead of just generically comparing it to comps in the neighborhood. The bank agreed, and I put together a portfolio showing before and after pictures along with associated cost for each improvement. Using that they went ahead and scheduled a walk-through appraisal which was two weeks ago. Now, because I haven't heard back I called the bank and spoke to the bank associates and they're trying to tell me after the walk through the new appraisal came back at $132,000... I can't even begin to fathom how this is possible, this looks closer to the original appraisal I got when I first purchased the home. I haven't had a chance to personally review the appraisal yet but I can't imagine that this is accurate.
The bank associate said they would review it further and look into disputing it. Are there any appraisers in here that can weigh in or have any idea what could've gone horribly wrong? Looking for any help possible and trying to dispute this and get the correct appraisal.