4-Plex / Quad / Fourplex Appraisal

[Oscar Beteta]

Hello BP!

I'm currently evaluating a 4-unit property in Plymouth Meeting, PA. After speaking to my lender, he confirmed that their method for determining the property value would be solely based on comp sales and not income. Note that I am working to get an FHA loan.

I was under the impression that banks would use a combination of comps and income generation methods to determine the value of the property.

Can someone provide me with more insight into this?  Will all lenders around the Plymouth Meeting, PA area determine property values for 2-4 unit properties using only comps?  Are there other areas where banks would look at both the comps and income generation valuation methods?

Thanks in advance for the help!