Multiple properties on single deed

[Andrew DeWeerd]

Hey everyone!

I just purchased 2.5 lots that were put together by seller (through quitclaim) prior to closing to be sold to me on a single warranty deed. Between it all, the half lot has an actual street address (just land, no dwellings), and the other 2 lots combined have another street address, along with 2 houses (3/2, and 2/2 guest home separately metered electrically but single water line). It's zoned SFR so it's tricky, but hear me out, I'm looking for any help if you have knowledge in the area.

I bought the property with the intention to execute a combined house hack / live-in-flip for a year (currently living in the 2/2 unit, rehabbing the 3/2 now), and then turn both into a full rental after a year, with strong equity creation through the purchase & rehab process to sell if need be.  This leads to me my future plans though, to rent both houses out - my realtor, a seasoned commercial property mgr, told me that bc the houses were basically on multiple parcels of land (even though same address), that it wouldn't be a problem with the SFR zoning (even though one house basically intersects both full parcels).  So here I am, starting to research how to do this properly/legally (put the cart in front of the horse perhaps.. rookie move), and realtor doesn't think I need to do anything but he's not getting a huge vote of confidence from me.  So I'd love if you would discuss these options with me if you're patient enough!

1) Do I need even to do anything, since there is multiple land parcels for the SFR zoning, even if they're both on a single property "address"?  

2) Can it be as simple as getting another address added at the post office for the other home, since there's multiple parcels of land?  Utilities has the houses metered separately already, under 1234 and 1234 #guest.

3) If not, can I somehow utilize the vacant property that already has the property address to qualify as the renting out of multiple SFR homes, even when they're both on the single deed?

4) Anything else I'm not thinking about that ya'll might have experience with?  

Anything helps!  

Thanks,
Andrew

#: Sarasota, Bradenton, Manatee, Florida, house hack, live in flip, @biggerpockets, @Mindy Jensen, @Brandon Turner, @Scott Trench @J Scott, 

[Amy Aziz]

@Andrew DeWeerd Hi Andrew! I always recommend reaching out to the county the land is in. They are normally pretty nice and helpful once you get them on the line. :)

[Amy Aziz]

@Andrew DeWeerd Hi Andrew! I always recommend reaching out to the county the land is in. They are normally pretty nice and helpful once you get them on the line. :)

[Andrew DeWeerd]

[Wayne Brooks]

The “single deed” means nothing, it was just conveyance under one deed for multiple parcels.

Having different addresses, means nothing.

I’m not sure what the problem is?  

If one house, “sits across the lot line” then they couldn’t be sold separately, as is. I would assume they were legal when they were built, and grandfathered in when it was zoned single family....grandfathered non conforming properties do have some restrictions, involving major alterations, etc.

If the properties are large enough, the lots could be reconfigured to have two different, compliant properties, assuming you could meet current set back and lot size requirements.

[Mindy Jensen]

I don't know what a half lot is, and I don't have any experience in the issues you're facing. I've only purchased single homes on single lots.

[Andrew DeWeerd]

Originally posted by @Wayne Brooks:

The “single deed” means nothing, it was just conveyance under one deed for multiple parcels.

Having different addresses, means nothing.

I’m not sure what the problem is?  

If one house, “sits across the lot line” then they couldn’t be sold separately, as is. I would assume they were legal when they were built, and grandfathered in when it was zoned single family....grandfathered non conforming properties do have some restrictions, involving major alterations, etc.

If the properties are large enough, the lots could be reconfigured to have two different, compliant properties, assuming you could meet current set back and lot size requirements.

Thanks Wayne! Yeah I guess the biggest question is if I can rent both sides out on this property as it is being zoned SFR, given all of the parcel & address points mentioned above.

[J Scott]

I would talk to the county, but assuming both structures are built legally (as-is), I see no issue with you renting them each out separately.  As for getting a separate address, that would be up to the county.  And as for selling them, unless you were able to subdivide the land in such a way as to make each parcel/structure legal (as Wayne said, lot size and setbacks, mostly), you wouldn't be able to sell them separately.

Don't know much about zoning down here (I've only been in the area for a few weeks), but let me know if there's anything else I can help with...

[David Gotsill]

@J Scott congrats on taking the plunge.

If you stick to your plan of holding and renting out, I don’t think you should have any issues due to the lots/addresses. There could be some problems if the structures themselves are not safe or somehow otherwise not compliant, but I find it hard to imagine that Florida renters are protected from lot-line or address issues (we don’t even do that here in Cali, where we love tenants like nothing else...).

I’m not sure how you financed the acquisition, but I could see issues regarding the lots being raised by lender/title insurers, either in the event that you try to finance it or sell to a buyer who is using financing.

Long and short: I agree with your agent (but still encourage healthy skepticism).