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Updated almost 8 years ago on . Most recent reply
Difficulty in finding 4plex Comps.
A lender that I am considering using for 203k loan told me recently that quadplexes are difficult to purchase and sell due to difficulty in valuing them. His rationale was that the 4 plexes in the area do not sell often, and value is based on similar properties sold recently.
What is the implication of this statement? I plan to owner occupy the property and rent out the remaining units.
I don't understand why the bank would care to determine the value of the property, as I would assume it would be determined between buyer and seller.
He recommended sticking with a duplex. Is there any truth in this?
Can anyone present any ideas to help me wrap my head around this problem he presented?
Most Popular Reply
@Spencer Brett Not for a residential mortgage. They will use comparative analysis, which is what your current lender is fearful of. They will not use an income based approach.