2 Properties on One Mining Claim

[Billy Murray]

Hey everyone! I'm hoping to get some advice to get me pointed in the right direction. I'm looking at 2 REO properties that have been on and off the market for years. They don't conform to most banking standards so can't get traditional financing. Details are below.

There's a small studio house that is on its own mining claim. This building is fine, but there is a small detail I'll outline below, because both properties deal with the same water problem.

There's also a big 4/3 that is halfway on the previous property's mining claim, and half on someone else's mining claim. This house isn't even on the mining claim that is included with the house. 

They're both using water from someone else's land (as well as 2 other buildings in the area). I'm not sure how water rights work out here, and whether or not I would have to have a well dug in or not.

My goal was to buy the bigger house and it's 42 acre mining claim to flip and sell. I then wanted to rehab the small studio to make it into a 1 bedroom to keep as a rental.

I'm thinking I would have to try to buy the small mining claim half the big house is on, or get them to allow an easement. The building has been this way since it was built, so I don't know how encroachments work in that sense. The only hard part seems to be the water issue. It most likely wouldn't be a problem to buy and hold as rentals, but the big house could bring a great cash profit.

Anything that anyone could help with would be great! I've been digging into deeds with the county clerk to see if any water rights agreements have been made, but I'm stuck. Thanks!