2 single family houses listed together as multifamily

[Kristopher Orr]

Hey everyone! Okay so I'm looking at a property that is listed as multifamily.  But when I went to go see it, its actually 2 separate houses that are back to back on a street. One is a 2/1 the other a 1/1. My question is, if I buy them both, then want to sell just one of them later down the road, what would that look like in terms of the loan? For round numbers, let's say I paid 100K for the pair, then sold one for 60K. Could I even do that? Would the bank call the entire loan due if I sold one? Any and all thoughts/opinions/experience welcome :-) Thanks in advance guys!

[Jaysen Medhurst]

@Kristopher Orr, few things to think about here. 

You need to check with the town to see if these two properties can be legally "split." If they're on 1 lot, depending on local zoning, you may not be able to subdivide. You'll want to have a clear answer about if they can be divided and if so, what (and how much) it will take to do so.

Once you know this, then discuss with your bank. I have heard about loans where more than one property are on the note, it's written in how the selling of a single property is to be handled. Obviously, the bank can't continue to hold a note on a property that you no longer own.