The income based approach to valuation is only used for commercial properties, that’s 5 units and up for multifamily.  

However, I should note that this tenant has been late paying rent several times recently, which has added some strain to the landlord-tenant relationship.How would you approach this situation?

I agree with this approach!

It’s a move that worked out exceptionally well, especially in a growing market like Phoenix.Here’s how you could approach it:Unlocking Equity:A HELOC is great for flexibility, while a cash-out refinance might be better if you’re aiming to make multiple acquisitions quickly.

It’s a lot to keep track of, especially when researching multiple markets.Would greatly appreciate any advice/insights from experienced investors who've navigated these challenges :- How do you approach understanding and evaluating short-term rental regulations when considering a new market?

If so (and even if not), I would love any recommendations to a loan officer in the metro Detroit area.Thank you in advance,Aaron RaffaelliDo you have either;A- existing primary mortgage payment history. or,B- 12 month verification of rent payments (as your primary housing)you should be able to land a DSCR loan no problem with that approach.

I'm really interested to learn how more experienced investors would approach this.

While it’s possible the machines could keep on chugging for years to come, I always like to take the conservative approach.

That is a successful approach.  

The sales comparison approach is typically done for residential real estate and will be less appropriate and come in under value because there are no good comps, and even an appraisal using the income approach (unless the appraiser is trained to do more complex commercial appraisals) is probably not going to be the most accurate either because they typically use market cap rates and in this case you don’t have good comparable income properties to find the market cap for the analysis.