Combining Two 1/2 Duplexes for FHA Loan

[Edward Stephens]

Hi BP Family,

I just got back from viewing a duplex and really want to make an offer on it. Half of the duplex is owned by a brother and the other half by his sister. The two half-duplexes are adjoined (share a roof), and it looks just like your typical duplex. The county assessor's office lists it as two different parcels of land. My strategy is to purchase this entire deal using a single FHA loan. How it stand now, I am unlikely to receive such a loan, because it is for two separate properties.

The game plan is to have the brother sell his 1/2 duplex to his sister, then go to the county board of zoning and work to get the 2 parcels combined into a single parcel (i.e., plottage). Once this process has been accomplished, I can proceed to purchase the whole duplex from the sister using an FHA loan.

Question #1 - Is this even possible?

Question #2 - How much does the process of plottage typically cost (this is in Kansas City)?

Question #3- Could someone suggest alternatives to solving this problem? I've already considered buying the brother's 1/2 duplex FHA and the sister's with a conventional, non-owner occupied loan - this would cost way more cash than I'm willing to spend.

Question #4- Are there any hints, tricks, or things to watch out for when doing this type of deal?

Thank you all in advance.  Hopefully this thread helps not only me, but other tyro real estate investors in the future.