1007 - no data

[jtengland]

I'm working a standard 1004+1007 assignment. I've got all of the sales data I need and I've already completed the majority of the 1004 form. However, come to find out that there is one lone sale in the subject's city of a rental property and nothing active. There is a sale of a rental property from 2007 and one from 2004, and that's it. How do you guys approach the 1007 rent schedule in these cases?

I know I just have to work with what I've got, but I don't feel that using rental property sales that are 2-5 years old will yield conclusive or reliable results.

Thanks!

 

[Carnivore]

I find it impossible to believe that in San Jose there is only one rental sale. I know that there are many rentals. You need to get with a local property managment company,cough up the fee they charge for rental comps.

After you do that, sit down and have a heart to heart talk with yourself and try an find out why you dont have adequate sources for your residential appraisal practice.

I live on the east coast, To demonstrate what I know about your area already:

Bookmark this site: http://www.ffiec.gov/geocode/default.aspx

I randomly selected an address

now here is what I got on 70 Sunol St, San Jose, CA 95126 - attached below

Here is some more: http://www.allpropertymanagement.com/search/california/san-jose-property-management-companies.html

Here is some more: Association of Realtors http://www.sccaor.com/

Get with the program!

 

[jtengland]

Thanks for the reply, I think, but I never said where the data was hard to find. I'm not referring to San Jose, I'm talking about Morgan Hill. And I will definitely sit down and have a heart to heart about asking for help again.

 

[CANative]

You're not doing an income approach by completing the 1007. It's just a rental survey to develop a market renal rate opinion for the subject. You don't need sales of rental properties. Just rentals of similar properties.

Call a couple of rental management companies in the area.

 

[jtengland]

Thanks for the reply, Greg, I will do just that. I completely understand the form and the conclusions it is used to develop, I've just never had trouble getting the data I need from the MLS. My mistake, and exactly why I reached out for help. Thanks again.

 

[Stone]

Thanks for the reply, I think, but I never said where the data was hard to find. I'm not referring to San Jose, I'm talking about Morgan Hill. And I will definitely sit down and have a heart to heart about asking for help again.

Sometimes people make assumptions they shouldn't. Don't let that stop you from asking questions.

 

[Carnivore]

I understand what your assignment is better then you. :icon_idea:

Your trying to figure out how to do an income approach to value and I am trying to show you how to just get market rents. Big difference.

I am assuming your doing a 1004 for lending purpose and they need market rents comaprable to the subject. You do understand later they will probably want the 216 also and you need info for that also.

Even if there are NO COMPARABLE RENTALS, you still have to explain why and how you know there are NO COMPARABLE RENTALS.

This all goes to intended use. They need to know if he can afford the loan by using rent receipts off of this subject.

 

[CANative]

Over the years on AF I've noticed that many appraisers overthink the 1007 (more like a brain-frt than not knowing something) and start looking for sales of rental properties instead of just rentals of rental properties. We don't need a GRM just a market rent.

 

[CANative]

You know later they will probably want the 216 also and you need infor for that also.

the borrower and the client are supposed to provide that to the appraiser.

 

[jtengland]

I understand what your assignment is better then you. :icon_idea:

I am still trying to figure out how I must have offended you.

I am trying to better myself by asking for guidance. I am only as good as how I was taught, and this whole conversation is solidifying my realization that I need to toss out some of those methodologies and gain new ones... which, and I'm repeating myself here, is why I asked in the first place.