Mixed Use

[SCOTTARNONE]

A very good client of mine has requested an appraisal of a mixed use property. I have never done one before so I said I would get back to them after I felt out the assignment. Luckily for me it is literally 3 blocks away from my house so I walked by to check it out. It is a small 3 story building, with a store front maybe 500 square feet on the first level (currently a travel agent) and an apartment on both the second and third floor, bringing the Subject to a total of 3 units. Now I was told a very long time ago that in a situation like this a standard 1025 small residential income form is to be used. Is this still the standard? Does anyone out here that performs mixed use appraisals have any words of encouragement or wisdom for me? If possible can someone send me a sample of a mixed use report that they have typed up.
Thanks for any and all help


Scott Arnone
Arnone@comcast.net

 

[Pamela Crowley (Florida)]

What is the zoning?

The store front, I believe, would make it commercial. Sounds like a commercial appraisal is needed along with the commercial appraisers license. Personally, I wouldn't touch it.

 

[Ghost Rider]

Unless you are certified general, you might not be qualified to do this assignment. You've said it yourself, that you've never done one of these types of buildings, so that does bring up the competency issue. I know FHA will lend on mixed use properties as if they are residential, but it depends on the percentages of the GBA that is commercial use compared to the residential use, but no matter what, I'd try to walk away from this one unless you can find someone in your area who is CG to help walk you through it for the first time.