Sounds like the borrower's are using the rent from the property to make the mortgage payments. So the lender then needs a Fannie Mae Form 1007 / Freddie Mac Form 1000 titled Single Family Comparable Rent Schedule. You find and grid three comparable rentals, some clients want them noted on a location map, and possibly photos also (all depends on clients supplemental standards). The lender also appears to need a Freddie Mac Form 998 / Fannie Mae Form 216 titled Operating Income Statement (which could be filled out by the property owner, but lenders insist on appraisers filling it out). And there is a separate fee for each form in addition to the fee for the URAR.
Also, and a dumb work of advice....don't take the AMCs fee when it comes to the Single Family Rent Schedule - they probably wanna pay you something obscene like $50 for it. Make sure they know that is far under market. Why do this?? Simple......
As previously discussed in another thread, the lender is going to charge the borrower through the nose for a non-owner occupied loan on the property. I'd guess a higher interest rate at the least, and a couple of points in addition to that are likely. Take your cut of the pie for the extra research you need to do to properly complete an appraisal of this type.
Thanks guys, I think the Fannie Mae 1007 is what they want. It is a single family and they told me to do a 1004 and the operating income schedule but in addition they just said the word "RentaL" and I wasn't completely sure what form they meant.
If you don't know what the forms are, are you sure you know what to do? There are three parts to a single family income property.
1. URAR - do the appraisal as if it was owner occupied except for the income approach which is merely a matter of gross rent multipliers x estimated or actual rent.
2. Comparable rent schedule - Find three sales that were tenant occupied. Contact the agents involved and get the lease information. Many appraisers use the same comps on the URAR on the Comparable Rent Schedule.
3. Income and expense analysis - This is the tricky part. More than likely there are no reserve accounts, you will need to estimate the expenses and reserves. Remember that there are different life expectancies for the items such as carpeting, appliances, and roofs.
May I suggest Henry Harrison's Guide to small income properties.
As far as fees, I charge $50 per additional form or $100 more for a single family rental property. I know lots of appraisers who charge more.