FHA Condo - Economic lifespan of building?

[Couch Potato]

I thought so. Tired of taking it up the wazoo? Stop turning and bending over for your prison buddy.:icon_idea:

You should send that tip to former governor Easley.

 

[Mr Rex]

I hope and pray that Mr SlEasley will join Mr Black in Lewisburg PA or perhaps Louisburg NC. Louisburg is trying to float bonds to build a bigger jail to house the excess of federal inmates at a profit. Only thing is, they can't get the feds to sign a long term lease. I remember when the poultry and hog farmers were told build it and they will come. Only a govt entity would buy that line in today's economy.

 

[CANative]

Just put 30 years and make them happy.

Tired of taking it up the wazoo? Stop turning and bending over for your prison buddy

To do this would I not need to be able to analize Population Growth and City Redevelopment

No comment needed.

 

[Josh Shapiro]

Required for FHA - give it your best shot.

Interesting. Ihave completed about 50 or so FHA condos. Not one have I included this and not one has come back asking for it!

 

[Josh Shapiro]

Just put 30 years and make them happy.

So just put 30 years or 60 years, whatever I feel like putting. A year from now have the state come down on me asking me to support my 30 or 60 year comment...... I will save this quote and have them talk to you and you can explain it to them and it will be ok!

 

[Walter Kirk]

Do you think that the building is going to fall down before the mortgage is paid off? since it was built in 2007 you can say with some certanty that It will last at least 30 years if not 50.

 

[Josh Shapiro]

I am just trying to make a point that it does not matter what we do, things will never change. It just makes me wonder how people on this forum can be so (cross the t and dot the i) when it comes to some things and then just feel its ok to pull a number out of their rear on others. The same people that you see being sticklers on certain things are the same people saying to just put 30 years and make them happy.....

 

[Couch Potato]

So just put 30 years or 60 years, whatever I feel like putting. A year from now have the state come down on me asking me to support my 30 or 60 year comment...... I will save this quote and have them talk to you and you can explain it to them and it will be ok!

Either you know your market, and you can give an estimate of economic life, such as 40-50 years, 10-15 years, 30-70 years, etc., or you should have passed on the assignment due to a lack of competency. The state is only going to come down on you for economic life if your figure has no basis in reality. If you put 5000 years, they likely will have a problem with the number. Even then, they are unlikely to bother about it unless there are other problems with the appraisal. You have made a determination of highest and best use, you know your market, so you ought to have some idea of the economic life.

I think it is clearly debatable whether or not it is required, but it simply is not worth fighting over. If you completed the report, you have stated the property meet the minimum property requirements, so you have already stated the remaining economic life is at least the term of the loan even if you did not realize the implications of your actions. All they are asking is for you to be more specific in what you already reported. :new_all_coholic:

 

[Mike Garrett RAA]

I'm with Greg, just make it longer than the term of the loan. Can anyone prove to me any real property has an economic life of more than X years based on the present economy and democrat congress?

 

[ZZGAMAZZ]

Rather than continue to argue with the underwriters I describe my estimate of the REL range, give a very brief description of the formula used to calculate depreciation, impose an extraordinary assumption because I didn't inspect the common areas of the development or any of the other private units, and indicate that the REL can be continually extended into the future with continual and routine preventive maintenance.