Is this a commercial or residential property?

[Account Closed]

I own a fourplex with a detached 24x24 garage (currently rented by a tenant). it has its own power meter. No facilities. The property itself is zoned commercial. I am curious would an appraiser/bank/buyer view this as commercial therefore value based on income rather than comps? 

[Greg Dickerson]

Anything under 5 units is residential by code classification even if the property is zoned commercial. With smaller properties like this the values a usually determined more form a comp standpoint over CAP rate as they could be worth more depending on location and uniqueness of the property. If there is nothing remarkable about the property then smaller deals usually trade at higher CAP rates.

The appraiser will use three approaches to get value.

Comps

Replacement cost

Income probably last and least weighted.