Refi help in with Cleveland duplex.

Realtor · St. Petersburg, FL · Member since 2022 · 23 posts · 9 votes

I'm hoping someone can give me some guidance here. Last year I bought a duplex in Cleveland intending on the doing a BRRRR. The loan was due in June. 2 months before it as due, I started to work on refinancing the property. I owe $77,000 and in order to secure another loan I need a valuation of $94,000. I have two appraisals. One is for $93,000 and the other is for $68,000. I really don't want to lose this property but the lender who currently has the loan has zero options for me. They told me to reach out to a private lender, I don't know any personally. Any ideas are greatly appreciated.

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Erik EstradaBusiness Member

Lender · Member since 2022 · 6k+ posts · 1k+ votes

2mo

Quote from @Gene Paniccia:

That's a very tough spot to be in. Have you tried doing a Rebuttal on the appraisal?

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Joseph CacciapagliaBusiness Member
Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes
2mo
This is a tough spot, but one that many BRRRR investors find themselves in lately. If/when a new lender orders their own appraisal, would you guess it's going to come in closer to the $93K or the $68K? Also, are you currently in maturity default? If so, how long to you have to get a deal done? The small loan amount is going to be challenging for a lot of lenders, especially the type that would move fast on something like this. Do you have capital available if you need to do a cash IN refi?
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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
2mo
Quote from @Gene Paniccia:

I'm hoping someone can give me some guidance here. Last year I bought a duplex in Cleveland intending on the doing a BRRRR. The loan was due in June. 2 months before it as due, I started to work on refinancing the property. I owe $77,000 and in order to secure another loan I need a valuation of $94,000. I have two appraisals. One is for $93,000 and the other is for $68,000. I really don't want to lose this property but the lender who currently has the loan has zero options for me. They told me to reach out to a private lender, I don't know any personally. Any ideas are greatly appreciated.

That's a very tough spot to be in. Have you tried doing a Rebuttal on the appraisal?
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Stacy RaskinBusiness Member
Lender · Member since 2022 · 1k+ posts · 494 votes
2mo
There are lending options where the lender won't see the appraisal until further along in the process but another appraisal will most likely need to be ordered depending on if you used an appraisal management company (AMC) and what company you used as different companies have different rules regarding AMCs. Happy to connect to discuss further.
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Raymond Duplessis
Lender · Princeton, NJ · Member since 2026 · 24 posts · 6 votes
2mo
Sorry you're dealing with this. Having two appraisals that far apart makes the situation especially difficult. Based on a $77,000 payoff and a $94,000 value, you'd need roughly 82% leverage just to cover the existing balance, before closing costs. That may be above what many DSCR or private lenders will allow on a refinance.

I’d still explore it, but I would first determine why the appraisals came in so differently and whether the stronger appraisal used truly comparable duplex sales. A new lender will usually require its own valuation and may not be able to rely on either appraisal you already have.

Depending on the property’s condition, rents, credit, and how much cash you could bring toward the payoff, there may be a short-term bridge or rental refinance option. I work with real estate investors on situations like this and would be happy to review the numbers without making any promises upfront. Feel free to message me the property address, current rents, estimated taxes and insurance, credit range, and whether the loan is currently past maturity.
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Robin SimonBusiness Member
Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
2mo
Quote from @Gene Paniccia:

I'm hoping someone can give me some guidance here. Last year I bought a duplex in Cleveland intending on the doing a BRRRR. The loan was due in June. 2 months before it as due, I started to work on refinancing the property. I owe $77,000 and in order to secure another loan I need a valuation of $94,000. I have two appraisals. One is for $93,000 and the other is for $68,000. I really don't want to lose this property but the lender who currently has the loan has zero options for me. They told me to reach out to a private lender, I don't know any personally. Any ideas are greatly appreciated.

Is the loan currently officially in default - i.e. your current lender gave you no extensions or anything?
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Gene Paniccia
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Realtor · St. Petersburg, FL · Member since 2022 · 23 posts · 9 votes
2mo
No it’s not in default. Payments are current.
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- Robin SimonBusiness Member
  Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
  2mo
  Quote from @Gene Paniccia:
  
  No it’s not in default. Payments are current.
  
  This will help you tremendously. As long as you keep it extended and current, your refinance options are going to be a 100x easier and more feasible
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Vijay FriedmanBusiness Member
Miami, FL · Member since 2026 · 766 posts · 122 votes
2mo
Quote from @Gene Paniccia:

I'm hoping someone can give me some guidance here. Last year I bought a duplex in Cleveland intending on the doing a BRRRR. The loan was due in June. 2 months before it as due, I started to work on refinancing the property. I owe $77,000 and in order to secure another loan I need a valuation of $94,000. I have two appraisals. One is for $93,000 and the other is for $68,000. I really don't want to lose this property but the lender who currently has the loan has zero options for me. They told me to reach out to a private lender, I don't know any personally. Any ideas are greatly appreciated.

@Gene Paniccia
That's a tough position, especially with a loan maturity approaching. Before giving up on the deal, I'd try to understand why there's such a large difference between the two appraisals, since that will likely affect any refinance options. If the property has stable rental income, it may also be worth speaking with lenders that specialize in investment-property refinancing rather than relying solely on conventional programs. Hope you're able to get it across the finish line.
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Stephanie MedellinBusiness Member
Mortgage Broker · CA · Member since 2014 · 1k+ posts · 642 votes
2mo
@Gene Paniccia What do you believe the value should be, and are there better comps that could have been used?
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Danielle LoguePro Member
Northern Virginia · Member since 2017 · 1 post · 0 votes
2mo
Have you compiled your own appraisal packet? If not, consider assembling the following to prepare your next appraiser. Include things like the purchase price & date, an itemized list of the improvements (what you fixed or purchased, the approx date, and contractor), any before and after photos, a few local comps. All of these support what you think the estimated appraisal is. Sure, they have their own evaluation list, but this shows you've done the work and supports what you think it's worth.
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