Posted by ray@lcorn on May 25, 2009 at 08:26:58:
In Reply to: Calue on Rental properties posted by michaela-CA on May 20, 2009 at 15:46:52:
Hi Michaela,
You're fighting a losing battle here. Single-family rentals, and duplexes through quads are always going to be appraised with residential methodology, e.g. comps and replacement cost. Even if you have a bunch of them, the ultimate exit is individual sales. The income approach typically doesn't apply until the project is above 5 units.
However, you may accomplish the same ends by paying close attention to constructing the the note terms to attract higher bids. See the articles and posts on the note forum for advice on how to enhance the value of notes.
ray