Income Approach vs Comps Approach Appraisal

[Stephen Torti]

Hi All, got the Clear to Close on my first multi! So, question about the appraisal, I bought the property for $170k and the comp appraisal came back at $174k but the income approach came to $184k and that's before I add 2 additional bedroom or do any renovations. The value of this house will be substantially higher using income approach when it's time to use equity to buy my 2nd investment. This is a BRRR property.

So my question is, when would a lender use income vs comp approach when using equity line of credit or cash out refi?  Does it depend on commercial loan vs residential loan? 

Rhode Island

Providence