Rental Property with Adjacent Vacant Scenario
My wife and I recently purchased a house and rehabbed it and it is currently renting out for the same amount as the mortgage payment. When we purchased this property, it was run down and had major issues to fix and there was an additional .34 acre parcel of land included with the purchase that is located next door. This vacant lot is wooded and undeveloped and we have been receiving offers for purchase of this vacant lot that we do not use. We are considering selling this empty lot for additional cash flow, however, I worry that by doing so will devalue the rental property when it comes time to sell. The rental property parcel sits on about the same size lot (.33 acre). The value of the rental property does include this additional vacant lot acreage on the original listing. The current renters love the rental house and have made it clear to us that they would like to purchase it from us. The neighborhood is quiet and charming and I assume the investor wanting to buy the vacant lot will most likely either hold for a while or build on it soon.