Residential or Commercial ????

[Kyle Woodruff]

It seems as if I have been drawn to odd properties that are hard to evaluate.  This example is no exception but can make a big difference in the potential appraisal of the property. 

So this is a mixed use property.  A business on the main level, and two 2 bed 1 bath units on the upper level. The property, according to tax records, is zoned as a commercial property.  

However, will an appraiser use a commercial type evaluation such as CAP rates, or can they have the flexibility to use a residential comp type format?

Are they bound do go one way or another or because it is a mixed property, do they have flexibility to determine which way it should be appraised? 

This can make a big difference the in evaluation of a property and has caused me to go gray way sooner than I would have liked :) 

As always I appreciate the insight and efforts of my Bigger Pockets Colleagues.