Challenges of Dual Occupancy Properties ??

Question

I've just listed a dual occupancy property, it's two single family houses on one lot

Are there any challenges or financing hurdles that buyers may face when looking to pursue this deal?

Isabelle Trepkoski · Answer

I am running into this now with another property my client wants to buy. It is 3 multi-families on one large parcel. Not all companies will lend on this even if it is legal. If you are the listing agent I would probably start looking for some lenders who understand the situation and would be willing to lend. Then provide those names to interested parties. I am a investor focused agent in Columbus. Where is the property, I might have a buyer.

Obi Johns · Answer

Good to know!

Obi Johns · Answer

Yes, I'm the one in King Lincoln. What did your client think? Did your client's lender have any feedback on if it they would qualify it?

Michael K Gallagher · Answer

I think I had a client send me this to look at! is it the one in King Lincoln?  I don't know of any specific lending hurdles, but the question, I think, would be if it falls under fannie/freddie guidance.

worst case I'd assume you could get it approved or pushed through lending calling it a single family with a carriage house/inlaw suite, those are pretty standard in and around downtown.  I've closed several on the buy side with conventional lending and have not had an issue.

Eric Veronica · Answer

It can be challenging.  Make sure to speak with the lender up front.

As long as the two properties on one parcel is legal within the local municipality AND there are other similar comparable sales that the appraiser can use then you are off to a good start.

There are quite a few of these in the Cleveland area which we close regularly.

Challenges of Dual Occupancy Properties ??

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