Has anyone had any experience with buying a property that had 2 houses on the same parcel lot? Any problems with the bank financing bc of appraisal problems? What are the advantages and disadvantages to these? I am going to look at such a property on Monday that can be a potential great deal with a lot of cash flow ($around 700 a month), and great cash on cash return (50%), cap rate 15.6%, NOI of $915/month. I'm just leery of this type of property for future sell off or cash out refinance to roll into another deal.
Looking at one Right now. If they are both the same type of building (e.g. SFH) and permitted, there shouldn't be a problem either appraising or financing. Where you may run into trouble is if there are two different kinds of buildings on the property, like the one I am interested in, which has a triplex and SFH on one property. These are challenging because they don't fit into a neat little box for anyone involved.
Yeh they're both SFR. one is a 2/1 the other is a 1/1. Both currently rented. It's a good rental property but if I wanna unload it in the future I don't want to have a really tough time selling and for the right price due to it being abnormal.
Talk to a real estate attorney about subdividing the lot and deeding each separately. It will make them more "liquid" when and if you want to sell them. You'll have to get a survey done to see if each property would meet the zoning set back requirements to even be able to subdivide them.
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