Cincinnati BRRRR refi: first appraisal $325K, second lender's appraisal $253K. What a

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Cincinnati BRRRR refi: first appraisal $325K, second lender's appraisal $253K. What a

Hossein Sharifi
Investor · Member since 2023 · 139 posts · 73 votes

I completed a BRRRR in Cincinnati last year and started a cash-out refinance this summer. The first lender's appraisal came in at $325K. For various reasons I ended up switching to a different lender with a better rate, and their appraisal came back at $253K.

I disputed it through a reconsideration of value and submitted a number of comps, and they only moved it to $275K. That's a $50K gap between two appraisals on the same property a few months apart, which makes me question whether the second one was done carefully.

At $275K I'd only pull out part of my initial cash, and I don't want to lock in a worse outcome just because of one appraisal.

For those who've been through this:

- Is it worth paying for a new appraisal or switching lenders again, or going back to the original lender with the $325K appraisal?

- Has anyone successfully escalated a second ROV, or filed a complaint about appraisal quality? Did it change anything?

- Would you take the $275K refi now and refinance again later, or wait?

Any experience with Cincinnati appraisers or lenders who handle BRRRR refis well is appreciated.

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 5k+ posts · 3k+ votes
4w

I would get a second appraisal by the new lender. I've rarely had appraisers change their valuations. Worst case I'd consider switching back.

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 5k+ posts · 3k+ votes
    4w

    I would get a second appraisal by the new lender. I've rarely had appraisers change their valuations. Worst case I'd consider switching back.

    1Reply
    • Hossein Sharifi
      OP
      Investor · Member since 2023 · 139 posts · 73 votes
      3w

      Thanks @Caleb Brown. Sounds like the consensus is that appraisers rarely change their minds, so I'm not going to push a second ROV. Switching back is definitely on the table.

      0Reply
  • Austin GoetzBusiness Member
    Lender · Minneapolis, MN · Member since 2026 · 33 posts · 11 votes
    4w

    As a lender who has worked at a few different banks and mortgage companies, I rarely see ROV's come back with a higher value or at least one that you were hoping for. I've been on both sides of the coin where the appraisal comes in lower than expected and higher than expected. Ultimately, it is up to the appraiser and what comps they are seeing or pulling in.

    If you want to explore another lender option, feel free to reach out.

    [email protected]952-797-2007
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    1Reply
    • Hossein Sharifi
      OP
      Investor · Member since 2023 · 139 posts · 73 votes
      3w

      Appreciate the honest take from the lender side, @Austin Goetz. Good to see someone from Minneapolis on here too. I may reach out once I know where things stand with the first appraisal.

      1Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    4w

    ROVs are a complete hit or miss nowadays. If successful, you can likely see a small difference in value. It is very rare for an appraiser to budge and provide a huge jump in value.

    Even if they do change the value, the lender will question the validity of the report a lot more. They order CDAs, have appraisal desk reviews etc.. Many AMCs are already integrated with the lender's LOS system so they will see the original value along with the new appraised value. You'd have to convince both the appraiser and the lender to agree with your value...

    You are better off ordering a new appraisal and submitting with another lender. Preferably a broker that can select AMCs directly.

    [email protected]818-269-7983
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    • Hossein Sharifi
      OP
      Investor · Member since 2023 · 139 posts · 73 votes
      3w

      @Erik Estrada I didn't realize the lender can see the original value next to the revised one through the AMC. That explains a lot about why ROVs rarely move. If I go the new-appraisal route, a broker who can choose the AMC sounds like the way to do it.

      0Reply
  • Dan Duenas
    Lender · Irvine, Orange County · Member since 2026 · 67 posts · 36 votes
    4w

    Your instinct is right to be suspicious of that $72K gap — two appraisers seeing the same property a few months apart should not be $50K apart after an ROV. But here's the honest answer on your options: a second ROV almost never moves the number meaningfully. ROVs change outcomes maybe 1 in 10 times, and usually by a few thousand — not fifty. The three replies so far are already telling you that.

    The cleanest play is almost always the boring one: go back to lender #1. That $325K appraisal is already in their file — no new appraisal fee ($500-700), no new hard pull, no new 30-day timeline. The "better rate" from lender #2 is only cheaper if it actually closes, and right now it's attached to a valuation that's costing you far more than the rate saves.

    On taking the $275K now and refinancing again later: run that math hard, because it means a full second set of closing costs. The extra cash you pull out has to be worth 2-4% of the loan all over again in a year or two — usually it isn't, unless you need the capital out now to fund your next deal.

    One more route worth knowing: on a cash-out refi of a rental, a DSCR refi appraises the same property but qualifies on the rental income alone — no tax returns, no W-2s, no pay stubs — down to 620 FICO with no ratio required, up to 85% LTV. If personal-income underwriting is ever the friction, that's the lane that skips it entirely.

    Happy to run your numbers — both the go-back math and a DSCR quote side by side. — Dan

    0Reply
    • Hossein Sharifi
      OP
      Investor · Member since 2023 · 139 posts · 73 votes
      3w

      Thanks @Dan Duenas, this is really thorough. You're right on the gap: $72K between the original appraisals, $50K after the ROV. Good point that the better rate only matters if it closes at a value that works. I'm leaning toward checking with lender #1 first.

      0Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 644 posts · 271 votes
    4w

    A $50K gap is big enough to take a closer look, @Hossein Sharifi . I would compare the two reports side by side—especially the comps, adjustments, and condition ratings—then ask the original lender whether the $325K appraisal is still usable.

    Another ROV probably will not move much unless you can identify a factual error or a strong comp that was missed. Switching lenders may be worth it, but compare the actual net proceeds, rate, fees, and cost of another appraisal.

    I would be cautious about taking the $275K refi with plans to refinance again soon, since two sets of closing costs can eat up the benefit. If the property cash flows well, I would first price out the original lender and one local Cincinnati lender familiar with BRRRRs, then choose based on the best overall deal—not just the appraisal number.

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    • Hossein Sharifi
      OP
      Investor · Member since 2023 · 139 posts · 73 votes
      3w

      Thanks @Divin Kanyama. I'll put both reports side by side and go through the comps, adjustments and condition ratings line by line before deciding anything. Comparing net proceeds instead of just the appraisal number is a good reminder.

      0Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    4w

    Hossein, adding one tax point to what Dan and Divin said about refinancing twice. On a rental, the points and loan costs from a refinance aren't deducted up front. They're amortized over the life of the loan. If you refinance again later with a different lender, whatever hasn't been amortized yet is generally deductible in the year that loan is paid off. So the tax cost of refinancing twice is smaller than the closing costs suggest, but the cash cost is still real, and the extra cash you pull out has to justify it.

    If you want help modeling the two paths side by side, feel free to DM me.

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    • Hossein Sharifi
      OP
      Investor · Member since 2023 · 139 posts · 73 votes
      3w

      @Ashish Acharya that's a helpful point I didn't know. It's good to hear the tax side of refinancing twice is smaller than it looks, even if the cash cost is still real.

      0Reply
  • Mark UpdegraffBusiness Member
    Real Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 713 votes
    4w

    @Hossein Sharifi Before I paid for appraisal number three, I’d want to understand why the first two disagree.

    I’d put the reports side by side and look at the actual comps, adjustments, condition ratings, square footage and anything else materially different.

    Then I'd have a good local broker or agent build a completely independent comp set. Not because a CMA replaces an appraisal, but because you need to know whether $325K or $275K is the outlier before spending more money chasing one of them.

    After that I’d price the actual choices: net proceeds, rate, fees, payment and time with lender #1 versus lender #2 versus starting over.

    One lesson I’d carry into future BRRRRs: if the refinance only works at the very top of your comp range, appraisal variance is part of the risk whether we like it or not.

    I’d make the decision based on the economics of the capital left in the deal, not on proving which appraiser was “right.”

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    • Hossein Sharifi
      OP
      Investor · Member since 2023 · 139 posts · 73 votes
      3w

      @Mark Updegraff your last line is a great reframe: the decision is about the capital left in the deal, not about which appraiser was right. I like the idea of an independent comp set from a local agent before spending more on appraisals. And noted on refis that only work at the top of the comp range.

      0Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    4w

    How long ago is the appraisal dated with the original lender?

    Typically they will only be "good for" 90-120 days and then have to be updated or get a new one anyway so it could be close, I think the market is a little shaky right now so if you are really needing to refi, I would look to go quickly and not shop or wait around too much longer

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  • Noah WrightBusiness Member
    USA, Nationwide · Member since 2024 · 340 posts · 123 votes
    2w

    Going line by line through both reports before you spend another dime is the right instinct, and it'll pay off whichever way you go. One thing that shrinks the decision: you don't lose the whole gap between the appraisals. Most DSCR programs cap cash-out somewhere around 75 to 80 percent, so you only lose that share of the difference, and that's the number to weigh against another fee and another few weeks. The other thing is that an appraisal sitting in lender #1's file isn't the same as a value their underwriter signed off on. If their review hadn't cleared it when you left, it can still get trimmed once you go back. An appraisal is only worth what the lender's review will accept. Had lender #1 finished reviewing the $325K before you switched?

    [email protected]737-773-3717
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  • Irv ArreolaPro Member
    Lender · Los Angeles CA · Member since 2026 · 57 posts · 9 votes
    2w

    Before you pay for a third appraisal, ask whether the new lender will accept the first one. Some will and many won’t. A swing that big usually comes from different comps or different condition notes, so put both reports side by side. Taking the lower number now and refinancing later can work, but count the second round of closing costs first.

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    0Reply
  • Neeraj Diwan
    Lender · Stamford, CT · Member since 2026 · 43 posts · 7 votes
    5d

    @Hossein Sharifi since you've already completed an ROV, I'd ask lender #1 whether the original appraisal is still acceptable to their underwriter before paying for another report. Compare net proceeds, payment, fees and any prepayment penalty across the available paths. Neither appraisal should be treated as guaranteed, and refinancing twice needs to justify two sets of costs.

    0Reply
  • Juan Hasbun
    Lender · Fort Lauderdale, FL · Member since 2020 · 58 posts · 15 votes
    5d

    A $50K difference on the same property a few months apart is definitely frustrating, but unfortunately it's not unheard of.

    Before spending money on another appraisal or switching lenders again, I'd try to figure out why the gap exists.

    A few things I'd look at:

    • Did the second appraiser use different comps?

    • Were they pulling sales from a different neighborhood or school district?

    • Did one appraiser make heavier adjustments than the other?

    • Were there any new sales between appraisals that impacted values?

    If the first appraisal was $325K and the second landed at $253K before the ROV, that's a pretty significant spread. To me, it suggests the appraisers had very different views of the market rather than just a small adjustment disagreement.

    From a lender's perspective, I'd be hesitant to lock in a refinance solely because I'm tired of fighting the appraisal. If the property truly supports a higher value and the cash-out piece is important to your strategy, it may be worth exploring another lender before accepting an outcome you're unhappy with.

    That said, I'd also take a hard look at the economics. If today's rate and terms are attractive and the property still cash flows well, there's something to be said for securing the refinance and re-evaluating later as rents and values continue to develop.

    Personally, if I were in your shoes, I'd compare:

    • Going back to the lender with the $325K valuation

    • Trying a third lender

    • Taking the current refinance and revisiting it later

    Then I'd run the numbers on each option.

    The biggest mistake I see investors make is focusing on the appraisal value itself instead of the overall return. If waiting six months costs more in interest and opportunity cost than the additional proceeds you'd receive from a higher valuation, the answer may be different than it appears at first glance.

    I'd be curious whether the lender shared the appraisal itself. Comparing the comp selection and adjustments from the $325K report to the $275K report may tell you more than the final values do. That's usually where these large discrepancies show up.

    0Reply
  • Ryan BakerBusiness Member
    Lender · Strongsville / Cleveland, OH · Member since 2026 · 103 posts · 26 votes
    4d

    Hossein, a light refi appraisal is one of the most common BRRRR headaches. A few things that help: ask the lender to submit a reconsideration of value with three better, closer comps; make sure the appraiser gets your full scope of work, receipts and before/after photos; and if the lender won't budge, a different lender with a different appraiser can come in with a different number.

    It's also worth asking whether waiting out a few more months of seasoning, or going with a DSCR loan that leans on the rent, gets you closer to the cash-out you planned.

    Happy to look at the comps and numbers with you on a quick call, my direct line and email are on my profile.

    (Drafted with AI assistance.)

    [email protected]330-548-3340
    0Reply
  • Tommy Deguchi
    Member since 2026 · 62 posts · 3 votes
    1d

    A second appraisal sank my first BRRRR refi too. My guy underwrote off the higher of market rent or the signed lease, which gave me ratio room, and cashed out off the new value with no seasoning. The second look was worth it. DM me if you want his info.

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