2 homes on 1 parcel financing options

[Matthew Newby]

I currently have a 1.3-acre parcel with a 2 bed 1.5 bath home that I built. Sweat equity paid off nicely, we owe $100K on it and it appraised in 2015 for $211K, not sure where its gone since then. We would like to maximize the value of the land by building a second home. The plan is to build a 3 bed 2 bath with a basement studio apartment. Once construction is complete we would move into the basement apartment and put the rest up for rent. The 2 bed should rent for $1200 and the 3 bed for $1600. Looking for input on the best way to finance this type of deal. One caveat that several banks have mentioned is that we would have to subdivide the parcel before we could refinance the second home and get out of the HELOC. I am certainly not opposed to this, but it does add some extra costs and challenges with the first mortgage holder.