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
Technology · Member since 2023 · 79 posts · 36 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 · 4k+ posts · 3k+ votes
1w

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 · 4k+ posts · 3k+ votes
    1w

    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
      Technology · Member since 2023 · 79 posts · 36 votes
      6d

      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 · 10 votes
    1w

    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.

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    • Hossein Sharifi
      OP
      Technology · Member since 2023 · 79 posts · 36 votes
      6d

      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
    1w

    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.

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    • Hossein Sharifi
      OP
      Technology · Member since 2023 · 79 posts · 36 votes
      6d

      @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 · Member since 2026 · 33 posts · 18 votes
    1w

    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

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    • Hossein Sharifi
      OP
      Technology · Member since 2023 · 79 posts · 36 votes
      6d

      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 · 421 posts · 167 votes
    1w

    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
      Technology · Member since 2023 · 79 posts · 36 votes
      6d

      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 · FL · Member since 2017 · 5k+ posts · 3k+ votes
    1w

    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
      Technology · Member since 2023 · 79 posts · 36 votes
      6d

      @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 · 703 votes
    1w

    @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
      Technology · Member since 2023 · 79 posts · 36 votes
      6d

      @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
    1w

    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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