My wife and I currently have parcel with two single family houses that we are house hacking.
We are renting out the 3 bed 1bath and living in the 2 bed 2 bath. The tenants have been there much longer than we've lived here and they treat the place like it's their own with seasonal decor, lawn care, and family get togethers.
I wanted to structure a rent to own scenario for them but am wondering do I need to subdivide the parcel into 2 separate parcels before I can do that?
I've always had that as an idea for a potential exit strategy and would like to see what's possible.
Any input/ advice appreciated!! Thanks
@Bridger L Logan I'd suggest calling the city about it, but my hunch is that you do not need to subdivide it just to sign a rent to own contract or to begin collecting on it. I would expect it needs to be subdivided before the tenant takes ownership though.
You can sign a contract for (just about) anything. It would be a breach of contract if you are unable to deliver ownership at the end though and I think you'll need it subdivided to do that.
I would also contact a local lawyer. Shouldn't be too expensive and will be well worth it. Just make sure they specialize in real estate locally.
@Dave Spooner thank you Dave!
I haven't done rent-to-own, does a standard contract include a legal description of the parcel? If so, you'd need to take care of creating the separate parcel beforehand so the contract doesn't include the legal description for both as it does now.
@Bridger L Logan You're welcome! Let us know how it turns out.