This depends on the lender and what is charged in the orig fee.

If you are doing mid term rentals or you’re doing a similar strategy in Tucson or just want to learn about it please reach out!

Nothing is owed on the inherited property.My question is, with the costs of building new still relatively high, would it be better to subdivide and build on the current property or use the equity of the inherited property to buy another separate income property?

I was embarrassed, but I didn’t give up.I called the buyers, and they all said the same thing: the property was overpriced.

The buyer would then refinance before the 2 years is up.

Could you talk a little about the process and numbers?

Welcome to the Bigger Pockets community!

On the bright side, a lower LTV will decrease the risk of the project for you so it's a good buffer to have on your first deal

@Maggie Hanner welcome to BP in the OC. 

Because you have to keep the same taxpayer as owner from the relinquished property to the replacement property I'd worry that the legal protection you'd want for a development TIC won't be there.DSTs have high fee but probably are the best path forward for someone who wants to be fully passive and avoid legal risk.