Selling my 2 houses on 1 lot separately - ADU

Selling my 2 houses on 1 lot separately - ADU

Member since 2019 · 16 posts · 1 vote

Hello, I have 2 houses on 1 lot, Main house is 1600 sf 5 bed 21/2 bath, 2nd House is 2 bed 1 bath 800 sf. Both on 1 lot, no garages so i cannot split lots without building garages and lot is too small for that, The houses have separate meters and addresses, This is an ADU before they made ADU'S, I will provide seller financing so appraisal is not a problem, The only issue is how can can sell to separate people, Do I put them on as Joint Tenants on the deed or ? Any advice I would appreciate. Thank you

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Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y

Still really tough unless the tenants are family members, and if/ when they want to sell/ move they will have a lot of problems.  You are kicking the can down the road for now by offering owner financing, but it will be next to impossible for one to sell while the other remains and continues to own in the future.  I'd make sure your potential buyers are well aware of this.

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  • Member since 2019 · 16 posts · 1 vote
    6y

    FORGOT TO MENTION THIS RIVERSIDE COUNTY CALIFORNIA

  • Nabil SuleimanBusiness Member
    Real Estate Agent · Los Angeles, CA · Member since 2016 · 596 posts · 299 votes
    6y

    @Bob Denkers

    Look up Tenancy in common sales and that will likely give you all the info you need 

  • Member since 2019 · 16 posts · 1 vote
    6y

    Thanks Nabil, checking into it Looks Promising

  • Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    I think you'll have quite a bit of trouble finding a buyer to only take part of the property unless you already have someone in mind.

  • Member since 2019 · 16 posts · 1 vote
    6y

    Going to try and convert tenants to owners

  • Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    Still really tough unless the tenants are family members, and if/ when they want to sell/ move they will have a lot of problems.  You are kicking the can down the road for now by offering owner financing, but it will be next to impossible for one to sell while the other remains and continues to own in the future.  I'd make sure your potential buyers are well aware of this.

  • Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    6y

    Can you look into whether the County would allow the 2 houses to be zoned as townhouses so they would each own their own house and have an interest in the property as the common area.  Then the deed could be changed to having 50% interest in the defined common area and own one whole building.  Townhouse 'rules' could set up maintenance and use of the common area as rules and have a process to amend the rules if both parties agree with each townhouse getting 2 votes or something like that.

  • Lender · Irvine, CA · Member since 2018 · 71 posts · 15 votes
    5y

    If doing Tenancy In Common with % ownership, make sure there is a good TIC agreement in place to prevent any problems down the road!

  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    5y

    If they are TIC's are they both responsible for each roof, siding, etc? I'd hate to be in the sdy paying for a portion of the big house repairs. If there's ANY way to swing it, you'd be better off selling the property to one tenant and let them collect rent from the other.

  • Lender · Irvine, CA · Member since 2018 · 71 posts · 15 votes
    5y
    Originally posted by @Bill B.:

    If they are TIC's are they both responsible for each roof, siding, etc? I'd hate to be in the sdy paying for a portion of the big house repairs. If there's ANY way to swing it, you'd be better off selling the property to one tenant and let them collect rent from the other.

    That's where a detailed TIC agreement comes in handy (there are attorneys who specialize in tics) If two separate buildings, I'd imagine each owner repairs their own but still have an HOA fund for common area expenses.

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