How do Finance One Duplex, Two Deeds?

Question

Joe Miller · Answer

@Kraig Kujawa It required some work but I was able to get it done. What I did was I called the county and set up a time to go speak to someone in the office. I presented the woman I spoke to with the numbers I had run, the letter from my company relocating me to the area, and a letter from the bank saying they couldn't loan on the property. After hearing me out and having some conversation she explained to me that she saw no reason that the property couldn't be combined under a single tax ID and that the land description be changed to satisfy the bank. All she needed to move forward was a signed letter (which I drafted) from the owner express his desire to combine. The owner submitted the letter and a few days latter things were good to go. Now I am a few months into my house hacking journey!

Aaron K. · Answer

If it is two separate bills to the county for property tax it will be two separate loans unless you go for a blanket loan.

Alex Olmo · Answer

If the numbers make sense, sure why not? HOA fees can eat away at cash flow.  Make sure the HOA is stable with minimal delinquencies and fully funded reserves. What area in Central Fl?

Aaron K. · Answer

@Joe Miller what is this magic, efficient, timely, and helpful local government you speak of?  I wish it were that easy everywhere.

Ned Carey · Answer

@Kraig Kujawa the term "Duplex" can mean two entirely different things.

• A single building with two units
• Two attached houses side by side, usually deeded separately and with different owners.

One option is to get a commercial "Blanket", or sometimes called a "Portfolio", loan for the two duplex properties. you are more likely to be able to get this type of loan from a smaller local community bank. Of course you can simply wait until you have used up your 10 load and then buy every property with a commercial loan.

Kraig Kujawa · Answer

I hear you. The HOA isn't too bad and covers some stuff that would otherwise eat at cash flow.

Kraig Kujawa · Answer

Update on this one: I took @Joe Miller advice (Thanks again). Called the property and planning assessor and found out that the owner tried to combine the units in May but was denied. There's no chance of combining them in the future. So essentially its a package of two condos.

I'm not sure if I'm getting a deal or not. On one hand i could sell the units separately. On the other, I will have to get two loans (more costly) and I would have to eat up two of my 10 FNMA loans (i currrently have 4 remaining).

Perhaps I go back and say "this requires a double loan, im willing to help you solve a problem, but youll have to knock 10k off the price'

Thoughts? Gonna make a call this afternoon

Kraig Kujawa · Answer

@Joe Miller yep - two parcel numbers, one duplex. How did you get around it?

Joe Miller · Answer

@Kraig Kujawa  Do you mean that there are two Tax ID numbers associated with the property? If so I have dealt with this and can explain how I was able to work around it with a little effort on my end!

How do Finance One Duplex, Two Deeds?

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