Need Advice on Appraisal Issues and Refinancing Options

[Najeh Davenport]

 Hey BP family,

I’m hoping to get some advice because I’ve hit a bit of a roadblock with a refinance, and I’m not sure what my next steps should be.

A couple of months ago, I purchased a property using a hard money loan for $115,000. Before the purchase, I got an appraisal that valued the property at $130,000 as-is. Fast forward two months, and now the property is rented out, so I decided it was time to refinance.

I went with Kiavi for the refinance, paid $1,000 for their appraisal, and was shocked when it came back at $115,000 the exact price I paid for the property. No improvements have been made, but nothing has deteriorated either. The new appraisal just doesn’t make sense, especially when compared to the first one.

Now, Kiavi is telling me I need to bring $20,000 to the closing table** to make this work because they're lending at 70% LTV. I wasn't expecting this at all, and I'm trying to figure out what to do.

Here’s what I’m thinking:
1. Dig into the Appraisals: Go over both appraisals with a fine-tooth comb, look at the comps they used, and challenge the discrepancy if needed.
2. Switch Lenders: I’m currently working on refinancing (six other properties), so I’m thinking maybe I should take everything to another lender who might be a better fit.
 My Questions:
- Has anyone dealt with this kind of appraisal discrepancy during a refinance? How did you handle it?
- Are there other lenders you’d recommend for refinancing rental properties that might have a smoother process or better terms?
- Do you think it’s worth challenging the appraisal with Kiavi, or should I just cut my losses and move on?

I’m trying to keep things moving, but this $20K requirement is throwing a wrench in my plans. I’d love to hear your thoughts, advice, or any experiences you’ve had with similar situations.

Thanks in advance for your help!

[River Sava]

Hey Najeh - 

Sorry to hear you’re dealing with this—appraisal discrepancies can be a pain. It might be worth digging into both appraisals to compare the comps and see if there’s a case to challenge the lower value. Your lender should be able to help dispute the appraisal if there are clear inconsistencies or missing information, especially now that the property is rented and generating income.

It might also be worth exploring other lending options, as some lenders have more flexibility with appraisals or different processes that could work better for your situation. Good luck and happy to connect with you!