What is the best ratio to use to deduce a sale price for an income property? What percentage of the price can be attached to the income potential and should the best assessment of the price for the real estate be discounted to reflect the income potential. Would "overpricing" the house,because of the income potential, be the better equation.

Normally rental income to apprassed value ( or selling price) is the ratio most investors are looking at. They care little if the home appraises for 200,000, what they care about is the price they are going to pay, compared to the expected rental value.