Two Properties on a Single Lot - Financing Options

[Milton Rivera]

Hello BP,

I have been running into a recurring trend in searching for deals.  Two properties located in a single lot.  The primary issue with this is that financing sources (traditional and hard money lenders) are having a hard time quantifying a valuation.   Example: 

• Two (2) duplexes on a single lot (four (4) doors total)
• Sales price - $250,000
• Assume the properties require $50,000 worth of updates
• All in cost - $300,000
• We can pull some comps for a  single duplex going for about $150,000

The strategy would be to split the lot in two and have a duplex in each.  This process does take time and effort (going through the city/county to seek a variance, complete a survey, file the docs with the correct jurisdiction) but not impossible.   This would satisfy the parties by showing a single dwelling on a single lot and get the appraisal.  Sellers typically do not want to go through the splitting process and incur those costs.  

The problem I am having is identifying the initial funding sources.  I am putting money into the deal (20%-30%) but would prefer not to fund all of it.  Please advise.