2 properties(houses) on one parcel lot

[Ray Jansma]

Has anyone had any experience with buying a property that had 2 houses on the same parcel lot? Any problems with the bank financing bc of appraisal problems? What are the advantages and disadvantages to these? I am going to look at such a property on Monday that can be a potential great deal with a lot of cash flow ($around 700 a month), and great cash on cash return (50%), cap rate 15.6%, NOI of $915/month. I'm just leery of this type of property for future sell off or cash out refinance to roll into another deal.

[Patsy Waldron]

Looking at one Right now. If they are both the same type of building (e.g. SFH) and permitted, there shouldn't be a problem either appraising or financing. Where you may run into trouble is if there are two different kinds of buildings on the property, like the one I am interested in, which has a triplex and SFH on one property. These are challenging because they don't fit into a neat little box for anyone involved.