I do a lot of work in small towns and on oddball properties in which there are no comps and for that reason the cost approach won't work. The one universal formula that always works is income ratios. I don't care where you go, after you consider district trend, property condition, risks, vacancy history, expense history and projections, etc., the cap rates and multipliers will be the same. If you treat the above mentions items properly the depreciation and obsolescence will be accounted for and your conclusion will be reasonable. If you don't have an apparent market due to limited size of one particular type property, my theory is to create one that makes sense. Even if you have nothing to base value on, if you can support an income and expense projection, you can use the band of investment method and create a reasonable model. The most important and least recognized value-influencing factor is good appraisal judgment.
