Two Houses, One Property - Help!

[Jerrett Wilson]

Hey BP! I got a question, that I’m having trouble finding an answer to!

A little back story before jumping into the question. In January I purchased a property that had two houses on it, a SFH and Duplex, which needed a decent amount of rehab. The numbers looked great for purchase price, ARV, rehab costs, and future rents. I used the calculator and factor in what I believed all the costs were based on due diligence. Had a contractor walk the properties to provide line item estimates. Had a realtor/broker provide the ARV, confirmed documentation with an appraiser. Had a property management company provide numbers for realistic rents and other factors. I was notified that I could separate the lots via a surveyor which would provide two separated properties for two separate refinances.

Here's the issue.. the city won't allow the properties to be separated as the SFH will no longer have access to road frontage. On paper, this is correct, but in reality there is a split driveway the leads to the back where the SFH is.

Yes, I know, I should have confirmed the surveyors plans with the city prior to purchase. In the future I will more than likely steer clear of this situation.

The SFH renovation has been completed, rented out, and I am looking to begin refinance before the duplex begins rehab as I am trying not to deplete capital reserves during this COVID19 issue. I have reached out to appraisers, lender, and REA, but due to time difference they are not available.

My question is, has anyone had any luck obtaining two separate refinances for two houses on one property? Is this even a thing?

Thanks in advance!

Jerrett

P.s. my apologies for messed up formatting, this was submitted via the app.