I hate BPO's for income property, the AMC's system doesnt allow for logic..

Does anyone perform the income approach to value for income property? It seems that their system doesnt allow. ahhh....

It says that GLA needs to be within 40%. It is if you divide the number of units into the number of square footage.

example... subject 1900sf and 3 units means 633 sf each..comp is 3000 sf with 4 units =750 sf. THIS IS WITHIN 40%. I am going submit and explain is this typical?

Bob, I agree, they should have different forms for income properties. I have never followed the guidelines when evaluating a rental property.

In the comments I emphasize on the important factors. For example, rents are higher, landlord pays all utilities, utilities are separated,rental history, 1 unit vacant and needs work. Updated/remodeled or not. I have done enough of them and never had a clarification request.

Bob H - I've done several multi families and truthfully have never used square foot adjustments like that. But it's not a bad idea really - did they accept it?

In this area, we have a lot of 3 and 4 families so it usually isn't a problem to get a comp within the same sq ft with the same number of units.

While I agree that it would seem to make sense to use rental income, etc. in determining market value, it's surprising how many of the properties have either vacant units or are renting to family or friends at way below market rents. If I used projected rents, it could get way too complicated for a BPO. Maybe that's why the forms don't ask for it. I will say it took me a while to feel comfortable determining market value and not taking rents into consideration.