KO Appraisal
Commercial service
Multifamily
Apartment buildings and residential income property, valued on the income they produce.
What makes this assignment different
Valued off the rent roll and market vacancy. In California, rent control and tenant protection rules can cap achievable rent, which changes value directly.
Who orders this appraisal
- Owners
- Lenders
- Investors
- Attorneys
What the engagement covers
- Net operating income, built from a rent roll rather than from asking rents. Actual collections, actual vacancy, and actual concessions are what a buyer inherits.
- Unit mix and size. Two buildings with the same unit count can produce very different income if one is studios and the other two-bedrooms.
- The gap between in-place rent and market rent. A building with rents well below market carries upside a buyer will pay for, but only to the extent leases actually roll and local law permits the increase.
- Rent regulation, where it applies. California has statewide limits on rent increases and just-cause eviction for much of the older stock, with exemptions that turn on the age of the building and the form of ownership. Whether a specific property is covered is a parcel-level question and changes what the income stream is worth.
- Condition and remaining life of the expensive components: roofs, plumbing stacks, electrical, and parking surfaces. These do not reduce rent until they reduce occupancy, so they hide from the income statement and surface in the reserve.
How it works
- Current rent roll with lease start and end dates, actual rent, and any concessions.
- Two to three years of operating statements.
- A schedule of recent capital expenditure, and any known deferred maintenance.
- Utility arrangement: which services the owner pays and which are separately metered.
- Any regulatory agreement, affordability covenant, or rent-restriction recorded against the property.
What you receive
USPAP-compliant appraisal of multifamily property. Standard turnaround is 1–3 weeks. Rush appraisals available for urgent deadlines.
| Appraiser | Kevin O'Brien, MAI, SRA |
|---|---|
| License | CA Certified General Real Estate Appraiser #3005065 |
| Standards | USPAP compliant |
| Turnaround | 1–3 weeks standard; rush available |
| Testimony | Deposition and expert witness testimony available |
Common questions
Which approach to value governs for multifamily property?
Income capitalisation normally governs, because apartment buildings are bought for their cash flow. Sales comparison carries real weight as support, since multifamily transactions are frequent enough to build a comparable set. For two- to four-unit property the balance shifts toward sales comparison, because those often sell to owner-occupants competing with buyers of single-family homes rather than to investors.
What multifamily subtypes do you appraise?
Multiple-unit housing, condominium, student, senior, and mobile home park, per his declared competency.
What is the most common error in these valuations?
The most common error is capitalising a pro-forma rent roll. A schedule showing every unit at market rent, fully occupied, with no concessions and no reserve, is a marketing document rather than an income statement. Correcting it usually moves value more than any argument about the capitalisation rate.
Next step
Tell me about the property.
Most assignments start with a short call, property type, the purpose of the appraisal, and the deadline you are working against. You get a fixed quote before any engagement, never contingent on the value reached.
Typical commercial fees range $2,000–$4,000. Residential and simpler assignments quote lower. Every engagement is quoted in advance, so the figure is known before work begins.