Operating Income Statement

[hal380]

Hello Kim;

You have gotten some good advise here.

I have something that may help. I sometimes use the "HUD Fair Market Rent Schedule for Existing Homes". These rents are published in the Federal Register.
I like them because there is an air of authority.

Hope this helps.

Hal


HUD Fair Market Rents (for whole nation in pdf format

 

[Jungle Boy]

Hal

that was an interesting site, and may come in handy with some appraisals. Thank-you !

I am assuming that these rates are for affordable housing, correct ?

It would come in handy when figuring rental income for Section 8 housing only ?

rk

 

[Kim Thompson]

Hey TC,

I did not tell them that I am incompetent. I simply disclosed my lack of knowledge on the subject--just like it states in USPAP.

Kim Thompson

 

[Kim Thompson]

Hal,

Thanks for the link. It is actually only $20.00 low for this neighborhood, but makes good data to reference and back up my findings since there was so little data available in this market.

Thanks to all that replied.

To set the record straight, I am a Residential Certified Appraiser and have been for 8 years. I have completed ONE Operating Income Statement in that time period since the market I work in is $300,000 plus homes. The one and only I completed was actually already filled out when I got it. I just verified and added my two cents worht. In this latest instance, I have no cooperation from the Borrower or the Lender and this home has NEVER been rented out. I can figure out what the rent should be, but without the Borrowers help, I have no idea what she plans to pay for (utilities, lawn maintenance, pest control, Rec. Facility fees, Management expenses--if she will use a management company, etc.) I can figure out what is typically paid in the area and assume she will use a management company. The rest I can guess, find in Marshall and swift or lowes.com or homedepot.com.

Thanks Again,
Kim Thompson

 

[Jim Onderisin]

Another place to get info to estimate the rents is the "properties for rent" section of the newspaper classifieds.

The first one is always the hardest. After this, it'll be like falling off a log.

 

[Artemis Fowl]

Property Management Companies. Found some in the phonebook. They have alot of data and usually a few rental comps you can use.

Usually the rent schedule is requested along with an Op Stmt as you need to establish market rent on the Op Stmt.

What Jim said...not bad once you've done a few.

 

[tommcsherry]

Here's the source I use for the appliance life estimates...The material was developed for the National Association of Home Builders (NAHB) Economics Department based on a survey of manufacturers, trade associations and product researchers.

http://www.oldhouseweb.com/stories/Detailed/10382.shtml

Lots of other good (basic) information on this site as well.

 

[Pat Butler]

Kim-- you really need to have the cooperation of someone involved with the property to fill out part of the form- especially the top part that talks about who is paying for what.

Typically, the lender never provides us with any information but they are suppose to provide us with the owner's column information on the form. That is useful information because the owner's ACTUAL expenses for their property is very useful information with respect to maintenance costs for example.

I'd supply the form to the owner and get their figures. I wouldn't complete the form without the owner's cooperation.

 

[jonathan asbury]

Take it for sure, rental surveys are usually easy money!!

on thing about what greg said though -

use that unless it is more than market rent. If it is more, than use your estimated market rent.

If the current rent is more than estimated market rent and there is a LEASE in effect, wouldn't you use the current (higher) rent because of the increased value of the lessor in the property. I dont mean 3 more months, I mean a year or longer lease.

jonathan