Remaining economic life for a condo unit?

[Joyce Potts]

But, yes some because of condition, build it cheap, and then rent to a certain type of clientele that may have a propensity for certain illegal and addictive substances, and property condition tends to fail rapidily!

Therein lies the distinction between physical vs. economic life.

 

[CSP 49]

Underwriter is correct.

REL is a HUD requirement for a condo. The statement is to be included in the reconciliation section.

I don't know how to post the link but here is how to get to the answer.

1. HUD.gov

2. Bottom right on appraisers

3. Bottom left, find answers

4. Valuation FAQ's

5. Item #3 under Cost Approach

How did I find this? By not putting REL in a condo report, getting a call from the lender and calling HUD to verify. It was not an easy find, it took several people at HUD to find the answer. It doesn't seem to be found anywhere in 4150.

 

[CJ1234]

http://www.HUD.gov/offices/hsg/sfh/appr/aprval.pdf

See FAQs page 7