Must I Own a Property Outright to Divide It & Sell Part of It?

[Gloria Sheridan]

I'm looking at making an offer on a property comprised of 2 tax parcels, adding up to 2.25 acres. I want to change the property lines to make a small, very manageable 0.25 acre parcel that has the rental cottages on it, and then sell the 2.0 acre parcel. Do I have to own the property in full (100% equity) before I can make these changes? If I don't, won't there be a lien on the portion I'm trying to sell? If I *can* do this, how would any outstanding loans I've taken to purchase and improve the property get split and partially paid back to my lender?

I think I'm looking at a cash-flow positive scenario, even without selling off the 2 extra acres, but not if I have to wait years and years to get it unleveraged.

Thanks, all.    --Gloria Sheridan