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Income Property

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Bobby Bucks

Elite Member
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
North Dakota
We’ve got an interesting crowd here at the ranch today, all professional
people.....2 R-Men, 1 R-Chick, 1 G-Man, a builder, an ex mortgage
broker, a notary public and yours truly, Bobby Bucks appraiser
extraordinaire. The topic is tenant occupied single family property....the
question is.......when is it an absolute that rental comps and O & I
statements are included?...... R-man #1 says it’s entirely up to the lender
always. R-Man #2 who is a USPAP puppy says that rentals & O & I’s
are a must any time there is a tenant in the property, period. R-Chick
says it depends on whether the property is a true investment property or
is sometimes used as a 2nd home.....if it is ever used as a 2nd home then
the rentals & O & I’s are entirely up the lender. I agree with R-Chick.
She’s knowledgeable and gorgeous to boot. I’ve always argued that a
true gross rent multiplier cannot be established if the property is rented
at several rates during the year and used part of that time by the owner.
G-Man naturally says that the report should be a narrative with rentals
& O & I’s and you should charge at the absolute minimum the
equivalent of 200 prime coyote pelts and get the payment in advance
with a cashier’s check. (don’t you just hate G-Men?) Now I realize it’s
Friday before a holiday weekend and it is the Bucks Ranch where this is
being discussed......we don’t have a copy of USPAP 2002 in sight. We do
however have an abundance of chilled spirits and Johnny Cash on
CD......gotta love it when he does that train whistle on Folsom Prison
Blues....which by the way is exactly where the rest of us will be going if
we don’t include rentals & O & I’s in that report according to USPAP
William. Any thoughts?...................

Dee Dee

Elite Member
Jan 16, 2002
Professional Status
Certified Residential Appraiser
It isn't up to the appraiser, loan officer, realtor or homeowner to decide if rental comps and OIS are needed. It's the INVESTOR who calls the shots.

After several instances where the LO has told me NOT to bother with rental information, then frantically calls me the day before closing saying they need it NOW, I got fed up and changed my own policies.
As soon as I know that it's a rental I demand that the LO call the investor to see what they require. If they squawk about making the call I inform them that if they ask for that information at a later date I cannot guarantee them that I will drop everything to get it. So far, every single time the LO has followed through I get a call back from them, grumbling but humbled, to say that they will indeed need me to provide rental comps and an OIS.

Ben Vukicevich SRA

Senior Member
Feb 9, 2002
Professional Status
Certified General Appraiser
New Jersey

You should know it comes down to bucks.

If the borrower has a lot, no forms need to qualify. If he has some bucks, rental comps only. If he's scraping for bucks, rentals and I&O.

Now for USPAP, just worry about long term leases and their affect on value. But out there in trailer land, those month to months don't matter much. :lol: :lol:

Have a nice Memorial Day weekend. Johnny Cash....yuk... :x


Frederick R. Ruffell

Senior Member
Jan 21, 2002
Professional Status
Certified General Appraiser
'when is it an absolute that rental comps and O & I
statements are included?" are included in what? I assume you mean the appraisal. My answer would be that rental comps would be included whenever the income approach is applicable and necessary. As for "o&I statments" I assume you mean Operating Income statments. It is my understanding that either the appraiser or the lender can compile the information, it just depends on what your client is expecting of you. I charge extra for an operating income statment and for a rent survey if requested. If the income approach is necessary and aplicable I do not charge extra.
Is this reasonable approach? it is always what I have done.[/quote]


Elite Member
Jan 15, 2002
Professional Status
Retired Appraiser
Virgin Islands
The purpose and intended use of the appraisal affects which view of the property would be reflected in the appraisal.


Senior Member
Jan 16, 2002
Will have to agree with Ben, and it seems, when there's plenty of loot it's not a question.

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