Has anyone else had this problem and if so what can be done to rectify it. I purchased my first property in 12/08 for $60K and have a mortgage of $48K. It is rented out for $750 a month so I have very good cash flow. My problem is that I tried to refi after a year of seasoning but the appraisal came in at $64K. When I purchased the house a year earlier it appraised at $86K. I was told by the mortgage broker that my purchase price affected the new appraisal, and that there was nothing I could do. I fully expected to be able to pull cash out of the property to fund further projects. I am now pursuing assignments to bolster my cash position but would really like an answer to how I lost $22K in property value within a year and is there anything I can do to rectify this loss?
Has anyone else had this problem and if so what can be done to rectify it. I purchased my first property in 12/08 for $60K and have a mortgage of $48K. It is rented out for $750 a month so I have very good cash flow. My problem is that I tried to refi after a year of seasoning but the appraisal came in at $64K. When I purchased the house a year earlier it appraised at $86K. I was told by the mortgage broker that my purchase price affected the new appraisal, and that there was nothing I could do. I fully expected to be able to pull cash out of the property to fund further projects. I am now pursuing assignments to bolster my cash position but would really like an answer to how I lost $22K in property value within a year and is there anything I can do to rectify this loss?