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Duplex
Welcome to Home Point Appraisal, Your Trusted
Real Estate
Duplex
Appraiser
A Duplex Appraisal is a valuation of a two-unit residential property designed to determine its current market value. The appraiser evaluates each unit’s size, condition, features, and income potential (if rented), as well as the overall property, location, and recent sales of comparable duplexes in the area. This type of appraisal is commonly used for financing, investment analysis, or tax purposes, reflecting both the property’s individual characteristics and its income-generating capacity.
Why Choose Home Point Appraisal?
With over 25+ years of experience in the SoCal real estate industry, we have expertise and knowledge of your local market. Call us for fast response or click the button below to get an instant quote.
Frequently Asked Questions — Duplex Appraisal
How is a duplex appraised differently than a single-family home?
A duplex (2 units) is appraised as a 2-4 unit residential income property using the residential appraisal form 1025 (small residential income). The appraisal includes both the sales comparison approach AND the income approach. Comparable sales come from other duplexes, market rent analysis supports the income approach, and the final value reconciles the two indications. This differs from a single-family appraisal, which relies primarily on sales comparison alone.
Can I use rental income to qualify for a duplex loan?
Yes, in most cases. Conventional, FHA, and VA loans allow rental income from the non-owner-occupied unit to count toward qualification, typically at 75% of market rent (the 25% haircut accounts for vacancy and expenses). Our appraisal includes a market rent analysis (Form 1007) that the lender uses to calculate qualifying income. The market rent opinion can sometimes be the difference between qualifying and not qualifying.
What if the duplex has rent-controlled tenants?
In LA County, many duplexes are subject to local rent stabilization. Below-market rents reduce the income approach value, but typically don’t reduce the sales comparison value if comparable sales are also occupied by rent-controlled tenants. We analyze the rent situation and explain the value reconciliation. For owner-occupied duplexes where you plan to occupy one unit, rent control on the other unit reduces flexibility but doesn’t typically prevent financing.
How are illegal or non-conforming units handled?
If the duplex has a non-permitted second unit, an ADU added without permits, or a garage conversion not on record, the appraisal reflects this. We typically appraise the property as the legal configuration (single-family if the second unit is unpermitted) and note the unpermitted unit’s existence and condition. Some lenders will accept value contributions for unpermitted units; others won’t. We document everything transparently so the lender can make the call.
Will FHA accept a duplex appraisal for owner-occupied purchase?
Yes. FHA allows owner-occupied 2-4 unit purchases as long as you occupy one of the units as your primary residence. Our duplex appraisals meet FHA standards, including the required safety, soundness, and security checks, and properly classify each unit. We’ve completed numerous FHA duplex appraisals throughout LA County for both purchase and refinance.
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