Two 4-units into one 8-unit

[Jake Hart]

Hi, I'm purchasing 2 4-unit properties that are sitting right beside each other but are on separate parcels of land. I called the zoning and planning department and they advised me that these parcels are currently zoned as commercial. My plan is to combine these parcels into 1 parcel. My question is, after these separate 4-unit buildings are technically on one parcel, would appraisers then be able to use the income valuation approach vs the market value approach? I would assume the answer is yes, but wanted to make sure. 

[Matt Devincenzo]

@Jake Hart my point is that 'zoning' or 'legal descriptions' have nothing to do with lending and appraisal standards directly. If you simply hold these as a single property, operate them as a single property and pursue a commercial loan with the stated intention of financing them together that is most likely sufficient. The only thing the appraiser needs in order to value these based on the income approach is to to given the direction that he should provide that info. 

So I would be very careful about not merging these parcels into a single legal lot because you think it is necessary for financing, to then find out that you did so 1) without actually needing to and 2) restricting your future resale options.