3 ms·

I have heard this explanation a few times, but what i don't get is why doesn't a long term vacancy trigger an adjusted loan to value ratio? Seems like it would

by jjeaff 5y ago

I have heard this explanation a few times, but what i don't get is why doesn't a long term vacancy trigger an adjusted loan to value ratio? Seems like it would cause an appraisal to be much lower than just charging less rent and actually getting a tenant.

bdowling 5y ago
The present value of an income stream starting in the future at the established rate may be higher in some cases than the present value of an income stream at a lower rate that starts immediately.