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Updated almost 8 years ago on . Most recent reply
Adjacent lots to house w/ mortgage - possible to sell these?
So let's say I'm buying a house that comes with two additional lots. The legal description is going to have "Random Place Lots 1-3" when I'm signing all the mortgage paperwork. If these lots have a value of say $10k a piece, would there be any way for me to sell these (I'm assuming since the mortgage is on all of these it's difficult at best)? If it matters at all, I think the house + lot it's on would appraise above the loan amount. This may just be a dumb idea, but seemed like I could get more off the lots than I put down so wanted to see what others know or have experienced.
EDIT: how do I move this to creative financing - not sure how it changed to short term rental
@Kevin Coggins If they are all deeded separately then what you could do is buy the two additional lots for $1 each or some low number and you will own them free and clear and can sell them separately at any time. just get the financing on the house. I have done this many times.
Originally posted by @Alex Deacon:
@Kevin Coggins If they are all deeded separately then what you could do is buy the two additional lots for $1 each or some low number and you will own them free and clear and can sell them separately at any time. just get the financing on the house. I have done this many times.
That makes sense, although I'm not positive on the deeds since the property is located in an oil/gas county, so they charge like $150 just to access their records. Since this property is REO, I'm going to guess the bank would want to handle this all as one transaction. This is good to know in case I come across anything similar in the future, I like the idea of the ability of getting into a property, then selling X and being able to recoup downpayment + some of the rehab costs.
@Kevin Coggins Thats the right thinking. That is whats so great about RE. You can make something out of nothing if you work hard and are always looking for deals and think before you act.