Appraisals for investment and rental properties require an advanced level of competency of the appraisal process. These types of appraisals are not just concerned with fair market value derived from a "Sales Comparison Approach", but also rely heavily upon what is known as the "Income Approach" to determine property value based upon income generation.

 

Knowledge and understanding of construction and replacement costs in conjunction with advanced appraisal techniques such as the use of gross rent multipliers, operating income statements, discounted cash flow, etc. are required to accurately determine the value of a particular investment property.

 

Investment appraisals are best suited for current or potential landlords, investors in search of their next "flip", companies or individuals adding multiple properties to their real estate portfolio, or families looking to temporarily rent their home for various reasons.