The Income approach will utilize a gross rent multiplier, versus an income capitalization approach (cap rate) approach used in commercial.But back to Dave's question: are there really no other duplex to fourplex in the area?  

Prices on everything is pretty crazy right now, but 100k+ seems expensive.I can imagine how you could get there but it would probably be utility driven (Water, Sewer, power).

The price of the loan, utilities, insurance, and maybe half a year of property taxes or so.

The good news is claiming income allows you to claim expenses, which means a portion of the house, utilities, etc. can become an expense. https://www.nolo.com/legal-enc...

Has anyone utilized Verdant or Carson for HVAC and/or electronic door controls? 

If there is more than one meter for any utility, the city can track this by utility usage. 

We took a 5 unit building that had one electric meter and one 40 gal water heater and separated them individually and had the tenants pay for their own utilities.

As an investor and agent in the area, I work with some investors who utilize lenders that only look at the asset and your credit score (but not your DTI), while others choose to purchase as a second home loan. 

Essentially all they need to come up with is one month's rent, which is typically the upcoming month anyway, and they walk away clean - no lawn care, no utilities, nothing - and we assume the risk if the property takes longer than 1+ month to rent.

Then we got a HELOC; because the interior was not complete, we used a bank that utilized desktop underwriting.