[jjeaff]

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]

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.