2 Homes on One Legal Description Question

[Vlad B.]

I'm new to this and inventory is tight, so I wanted to understand what happens when you purchase 2 homes on one lot. Is there a downside to this? Is it difficult to sell later on? What about if I wanted to split the lot lines at a later date, would I be able to do that?

Any helpful advice on this or additional information would be helpful.

[Ryan Husser]

Hi Vlad, 

This is something that is common in CA, but I did see this when I was a loan officer many years ago. We classified it on the loan side as a multifamily duplex, and used those underwriting guidelines to approve the loan.

Depending on your market, it could be tough to find comps. in the area for the appraisal. This could cause challenges when/if you do decide to sell the property later on.

You should be able to split the lot lines, but again it would depend on your county and how they have the area zoned. Also they would likely need to complete a land survey which you should budget for too. So to answer your question it is possible but can be easy or a headache depending on your county. 

A local title company would also be a good resource and could provide you with more info on this type of situation as well. 

Hopefully this helps!