Divide parcel with 2 houses and cash out refi or other options

[Janell E.]

I bought 2 houses on a single parcel of 1 acre lot for $85,900 1 month ago. Rehab is finishing up and they're about to be ready for renting out at $850 and $1000. I put about $30,000 into rehab total. Estimated ARV for each house is $60,000 and $90,000. My plan is to divide the lot, which shouldn't be an issue based on my conversation with the township, and then cash out refi each property with conventional 30 year financing. I then should be able to pull out a total of about $112,000 minus about $3000 closing costs for each house giving me $106,000 leaving $10,000 left into the deal. Dividing the lot should allow be an easier exit strategy should I choose to sell one or both in the future (buyers can't get conventional financing on the property unless divided).

Just wondering if there are other options I'm not thinking of that would save me the time and small cost of dividing the property and also having to pay separate closing costs on each property. I appreciate the help. Thanks!

[Tanya H.]

Hi Janell,

How fun to see you on here.  Here's some additional you might consider as well.  I don't know how/if it can be done, but if you could divide it into 3rd and sell the back of the property to the commercial property that is down on the next corner towards Euclid.  I think the property is going for sale soon, but at one time, the owners of that at the time was interested in buying some of the land out back there for more storage.  

I love that you are going to do the things that the property really needs - you have great vision.  I'd love to see the final rehab on the bigger house. 

Regards,

Tanya