Modena, NY · Member since 2018 · 6 posts · 0 votes
My father and His brother owns a zoned residential property, roughly about 12 acres. A few years ago they allowed another brother to build a house on the property taking away 4 of the 12 acres. I would like to structure a deal to purchase the entire property and build (2) modular duplex’s and rent them out. My question is since there is a house on the property that has a mortgage on it, is it too risky to purchase the entire property ? Any suggestions in this case?
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
@Bobby Newkirk nothing risky about the deal. You would get a loan for the entire property that would pay off the existing loan.
Other options would be to subdivide the existing house and other parcels and finance them all separately. That would likely create the highest value overal.
Modena, NY · Member since 2018 · 6 posts · 0 votes
7y
@Greg Dickerson thanks for the info. Your second option is a better option. I’ve decided to buy out my uncle and partner with just my father with the property as an rental property. Also I’ve decided to survey the house off the property. My other question is after surveying the house off the property. Will it be harder to get a loan to finance 2 modular homes to rent out being that the properties value is less because the property will be vacant ?
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
@Bobby Newkirk it all depends on your financial strength and the income the property can generate. The best thing to do is talk to some local and regional banks in your area and run the proposal by them.