How to turn a double lot into two properties

[David Klefeker]

This seems like such a unique and interesting deal but I want to make sure I have the best strategy for it. 

So as I mentioned above, there is a property that sits on a double lot and happens to have 2 houses on it.

The city has already verbally confirmed that it can be divided into 2 properties. Each house sites evenly on each side of the lot. The lot is around .36 acre. 

If I get a conventional loan on the property as is, I would not be able to turn the property into 2 parcels because at that point, I would be in default of the loan. 

However, if I get hardmoney for the deal, it is going to take some time to get the property rezoned as 2 parcels. I don't want to take on hardmoney for an unknown amount of time. 

However with this said, the ARV for both properties is a combined $150k (or $100/sqft) over purchase price. The purchase price is at $50/sqft.

I am being very conservative because of the age of the properties and any possible market shifts in the next 4-6 months. Currently, the average sqft price in this neighborhood is $115-$147 depending on finishes. 

Ultimately the plan is to acquire the property, split the lot into 2 parcels, renovate both properties to achieve premium rental rates for that area and then pull the cash on both properties at 75% ltv and go then go fine another deal!

I would love to hear anyone's advice on what they think the best strategy would be for this deal. 

Thank you!