Lender recommendation needed

[Jim Fredo]

Does anyone know of a commercial lender, who loans in PA, who permits income-based appraisals for residential rentals with less than 4 units?

[Gabe G.]

Hello @Jim Fredo,

Unit counts 1-4 are actually considered single family homes, and are not commonly appraised using the income approach. Income approach is limited to commercial properties which begin at 5 units in residential. I've been investing for 10 years and have not come across a lender who uses the income approach for under 5 units. I would love to be wrong, so if you find one, please let me know.

All the best!

Gabe