Real Estate Investor · Los Angeles, CA · Member since 2016 · 8 posts · 5 votes
In August 2015 my wife and I purchased our home here in Murfreesboro with a FHA/THDA loan. The property is 1/2 acre, with 1/4 being an empty corner lot. My original plan was to build a duplex on the empty lot to rent, but due to our current financial situation, I'm thinking we would be better off to just split the property up and sell it.
My question is, is this even possible without refinancing? Because to my knowledge, our types of loans don't allow for renting or selling without a penalty.
I'm a complete newbie in the real estate world, so any advice is appreciated.
Investor · Murfreesboro, TN · Member since 2013 · 59 posts · 80 votes
9y
I would call one of the codes department in Mboro and tell them what you are thinking about. They should be able to direct you to the proper person to answer your questions regard dividing the lot.
Investor · Murfreesboro, TN · Member since 2013 · 59 posts · 80 votes
9y
You most likely would have to refi since the lot is part of the collateral.. But, the first step I'd take is talk with the city folks (codes department?) about what it would take to split the lot. Then talk with a local real estate agent to get a feel for what the empty lot would sell for if you decided to proceed. Then weigh all that against your refi costs and see if it's worthwhile.
Real Estate Investor · Los Angeles, CA · Member since 2016 · 8 posts · 5 votes
9y
@Anthony Stephenson, By talk to the codes dept, do you mean I need to get an inspector to come look at the property? Or can they tell me what I need to know there in the office? Sorry for the newbie question.
Investor · Murfreesboro, TN · Member since 2013 · 59 posts · 80 votes
9y
I would call one of the codes department in Mboro and tell them what you are thinking about. They should be able to direct you to the proper person to answer your questions regard dividing the lot.
Rehabber · Clarksville, TN · Member since 2015 · 74 posts · 44 votes
9y
@Jimmy Holman you will need to call the codes department to confirm that the lot is zoned for multi family. The current mortgage holder my be willing to release the property depending on how much equity you have it is highly unlikely.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
9y
Yes, ask your lender if it would be possible for them to release the second lot,massuming it truly is a separate parcel. You'd likely need a current appraisal for them to consider it.