downvotes_puffins t1_ja8yge3 wrote
Residential properties can certainly be valued based on income. What fundamental difference would there be between commercial and residential rental property.
Blecher_onthe_Hudson OP t1_ja9gv7r wrote
Residential properties can be bid up by irrational exuberance and as long as the comps support it the banks will loan on it. A commercial property is a business appraised by its income.
What's hilarious is to look at an appraisal of a three family for example, the dishonest appraisers will torture the numbers so that the three completely different methods of appraisal: comps, rents & replacement, all fall within a couple of percentage points of each other.
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