Should I buy land and build a modular duplex for rent

[Bobby Newkirk]

My father and His brother owns a zoned residential property, roughly about 12 acres. A few years ago they allowed another brother to build a house on the property taking away 4 of the 12 acres. I would like to structure a deal to purchase the entire property and build (2) modular duplex’s and rent them out. My question is since there is a house on the property that has a mortgage on it, is it too risky to purchase the entire property ? Any suggestions in this case?

[Greg Dickerson]

@Bobby Newkirk nothing risky about the deal. You would get a loan for the entire property that would pay off the existing loan. 

Other options would be to subdivide the existing house and other parcels and finance them all separately. That would likely create the highest value overal.