[Mark K]

I've appraised for FEMA before and I've not known them to force a sale by eminent domain or other proceedings; always voluntary in my experience.

I've also appraised many houses taken by eminent domain for R/W and its amazing how many bogus leases and bogus purchase agreements/options show up at the time of the appraisal. A 20 yr lease on a residential dwelling? Gotta throw the BS flag on that one.

Nothing says you can't do the appraisal as you indicated in your original post but how much credibility would it have?

I've had bogus purchase agreements for 5X the market value handed to me when I showed up to appraise a house for a total take. I said thanks, included it in the addenda, discussed it away, and appraised the property for MV.

To be credible the report has to be based on something that at least resembles reality; a 20 yr. residential lease on an SFR does not fall into this category, IMO.

[Mr Rex]

I think the OP worded it poorly, its not really a 20 year lease, its 20 years of leases with normal vacancy rates, if I understand the question.

[Denis DeSaix]

It sounds to me like you may be trying to analyze investment value and not market value.

That may be an appropriate analysis; I'd urge you to be confident about your understanding of the differences and how they relate to one another, and then determine if investment value is relevant to the valuation problem.

Not necessarily complicated, but not always a simple calculator key-stroke problem either.

Good luck.

[David Mescon]

Originally Posted by Mr Rex

I think the OP worded it poorly, its not really a 20 year lease, its 20 years of leases with normal vacancy rates, if I understand the question.

I was wondering the same thing. If there's a 20 year lease, why would there be a vacancy loss? No mention of collection losses; and, if the long term tenant, for any reason, defaults, what are the odds of replacing the tenant? Just wondering...