1007 Rent Survey Subject Not Livable

[CANative]

D'oh. A market rent survey is not the same as an income approach. The OP's client wants to know the opinion of market rent.

 

[J Grant]

Then if opinion of market rent is zero, it's zero...if that is what they think it is due to lack of demand. Especially with mold, who would pay anything to rent a place with mold?

 

[CANative]

Then if opinion of market rent is zero, it's zero...if that is what they think it is due to lack of demand. Especially with mold, who would pay anything to rent a place with mold?

Did you not see the picture I posted and the current rent on that property? If you lower the rent enough someone will rent it. "Habitable" is a subjective term.

I currently have 11 live assignments (one borrower). All are more or less in the condition described by the OP. I have to do 11 rent surveys (7 SFRs and 4 2-4 units - two of the 2 unit properties are attached manufactured homes. A 4 unit is a converted commercial building.) sigh.

 

[Terrel L. Shields]

We just did 2 condo REOs under contract and 30 days later the buyers had them in living order. As my ***'t lives next to them she concluded they didn't spend over 3 days on both and the buyer of both was a local remodeler. His crew was "in/out" with replacing patio doors, interior doors, installed new appliances and patched holes in the walls and painted....a service company came by and deep cleaned the carpets...

So the cost to cure and an allowance for 1 months' lost rents puts you right back on track... no step for a stepper. That's exactly how the buyer was thinking. Fix it fast, get a renter in it. His budget was $10K for each unit.

 

[J Grant]

Terrel, your photo was an average minus condition but rentable place imo,. The subject OP sounded much worse.

 

[CANative]

Terrel, your photo was an average minus condition but rentable place imo,. The subject OP sounded much worse.

Icky floor coverings and some mildew in the bathroom sounds "much worse" to the point of not be habitable?

 

[Mr Rex]

Mention the word mold and some folks flip out, reasonable people with some common sense not so much. I did a Home Inspection today and the lady was worried about "mold" that was minor mildew typical of an unoccupied house. A wipe with a damp cloth and the "mold" was gone. The "mold" on the ceiling of the bathroom was from a leaking plumbing vent through the roof. Repair the leak, wipe with a damp cloth and a coat of Kilz and no more "mold". Gimme a break with the mold hysteria, and order mushrooms on your next pizza. Fungus is amongst us.

 

[Echipman]

Thanks to everyone for the input on this! I really appreciate it! Just as suspected, it seems as though my peers are split right down the middle on this issue. Perhaps I'll take this question straight to the appraisal board and see what they say about it. I've posted some pictures of the interior of the townhouse I originally posted this thread about. Maybe this will give you some insight into the overall habitability of it...

 

[Echipman]

Here are some pics of how large the holes were in the walls (probably 8-9 holes of this size and larger). Pic of cracked/broken floor tiles (probably 10 of these are broken). Horribly stained carpet.

 

[HF Mudd]

How long would it take at typical investor/buyer to rehab the subject into rentable condition?

How long would such a property (purchased by a typical investor/buyer) be on the market before it was rented?

This IS the market for your subject. Therefore this IS the market for your subject's current rental potential.

You say that you have sufficient comparables of similar condition which have been purchased by investors and subsequently rented by same. Therein lies your answer - just make sure you explain, explain, explain.