Income Approach

[Mike Garrett RAA]

I concur...sounds like they want an income/expense analysis and a comparable rent schedule rather than an income approach; however, they might want that also.

Suggestions:

1. Does your MLS have a field on the form for owner/occupant? Mine does. Search those marked tenant occupied, call the agents and find out how much the property is rented for.

2. Call some property management companies that are board members. Most, at least IN MY MARKET, are pretty cooperative in providing data to appraisers.

 

[Brian L. Stone]

I clarified with the LO as to what exactly they wanted in the report. Turns out they are not asking for the income approach, what they want is an Operating Expense Income (Fannie Mae 216) and a Single Family Comparable Rent Statement (Fannie Mae 1007). They are paying me more than the usual fee for this extra info. I still needed to know where I can find rental data in the subject area so Thanks to all for you input.

 

[Tom Burns]

I am doing my first appraisal where the LO has asked for the income approach on the 1004. In all my previous appraisals it was not necessary to use this approach as it was not needed to provide credible results.
My data sources (MLS, NDC) do not show me which homes in the neighborhood are rentals. My question is, where do I get the information that tells me how many, and which homes are rentals, and how much the rent is? so that I can determine a GRM.

Try this site out...
http://www.huduser.org/datasets/fmr/fmrs/select_Geography.odb

Your topic came up in a recent USPAP course I took, and the instructor gave the class this link that he uses. You can search by state/city. Hope it helps.