Small Income Residential appraisal

[PropertyEconomics]

I agree with Mr. Kinney. Also most people look at two to four unit properties to be occupied by a owner, or a owner and family members. I know some people buy these properties as investments, but they still fall under typical FNMA, FHA and VA financing with most weight given to the market approach.

Careful .. this statement is absolutely not true in all markets. In my market nearly ALL are purchased as investments with very few being owner occupied. As a result FHA would not finance most 2 - 4 unit properties here.

Additionally, I dont care what FHA, FNMA, VA may or may not say ... the issue is whether the property is purchased for its ability to produce income. In my market the sales comparison approach would only be considered secondary support to the income approach as it is most reflective of the motivation of the typical buyer here.

 

[Michigan CG]

Careful .. this statement is absolutely not true in all markets. In my market nearly ALL are purchased as investments with very few being owner occupied. As a result FHA would not finance most 2 - 4 unit properties here.

Additionally, I dont care what FHA, FNMA, VA may or may not say ... the issue is whether the property is purchased for its ability to produce income. In my market the sales comparison approach would only be considered secondary support to the income approach as it is most reflective of the motivation of the typical buyer here.

I completely agree with the above post.