Duplex built as two separate condos, potential upside?

Question

Property in every shape and form is a duplex, but is labeled as an "on-site condo" with each side being labeled as it's own entity "condo". Meaning that each unit can be sold/bought individually from each other and each is taxed separately. We figured this out after the lender dug through records and after the home was put under contract.

Currently working with a lender that will allow me to take out 2 mortgages for the entirety of the duplex. I'm able to pay lower property taxes on one side this way as I can count one of the "condos" as a primary residency.

I've never seen or heard of this before, this seems unusual to both the lender and agents especially in this area. Does anyone have experience or knowledge about this type of scenario? Is there anything I should be wary of here? How is a home like this appraised?

Thanks,

Account Closed · Answer

Owning both sides of the duplex is great, in that you don't have to deal with a HOA or negotiate with the other side/owner regarding repairing the roof, etc.

I know someone personally who owns only one unit in a duplex.  So far, they haven't had to deal with negotiating anything.  They rent it out to a tenant right now.

I personally, wouldn't want to only own one side.  I don't like having to negotiate things like common walls, roofs, etc.

The only downside I can think of would be if paying separate tax bills would be more expensive than just owning a property with one tax number.  Other than that, I can't think of any down side.

In fact, the seller would probably give a better deal to you, by not having to find two owners who want to deal with only owning half of a property with all of the above issues.

Wayne Brooks · Answer

It can be problematic with a small number of units.....no professional management, two owners have to to agree on everything that is spent....when/if you try to sell one unit.

Moises R Cosme · Answer

Josh,

1. This is normal and usual in our markets; people do it to get additional value out of the property

2. You need the master deed

3. You need the individual unit deeds

4. You need the current master insurance policy; I believe you will still need a master policy and individual unit policies even if you own both units since the property has a condo designation