You will need engineers to do drainage studies.It will cost you at least $25,000 for the subdivisionYou will have additional costs during development because you will likely lose your water tap and your wastewater connection on at least one of the lots (I'm assuming that the existing connections will no longer fall within the guidelines of the land development code)..The city will tell you that this takes 6 months.

I'm looking at a Fannie Mae property right now that is a legal duplex that the owner tried to add an illegal efficiency to.

Those questions are important in understanding strategy and how you are going to create a time efficient system that allows that specific investor to be comfortable enough to buy property from you.

Please advice.Price $250,0002 FamilyRents: $1,200 per unit2 – 2 beds unitsBrickAge of roof unknownTaxes: 5,300Age of the property: 72Garage and DrivewayNothing to do but to move in (unless you want to update the kitchen)Very well taken care ofUsed to be oil tank but now removed and converted to Gas1 meter for both units – water and gas (the seller splits the bill between two tenants)1 unit if rented at $1,2001 unit is vacantThe roof is still good but in the next 5 years might need some work.Thank you

It's on a river, on a snowmobile trail, close to skiing, and whitewater & flat water kayaking.Also had a chat with an acquaintance/friend that is interested in being a private lender for our long term rentals.   

Do both...Get a new unit and more energy efficient for your tenant. 

RMs are usually dead in the water right there.  95% payoff amount plus court costs to probate an upside down property.  

Utilities not onInoperable heat supplyMissing or insufficient weather-strippingLoose or torn carpetMissing or cracked electrical outlet cover platesCracked or peeling paint on wallsCracked or broken window panesMissing refrigerator kick platesEvidence of roof leaks/pipe leaksDirty stoves, ovens or walls and unkempt perimeter surrounding houseInsufficient bath ventilation and inoperable smoke detectorsLeaking faucets or plumbingNo temperature/pressure relief on water heatersYou screen your own tenants, then you submit the paperwork to have a tenant approved by the Housing Authority.  

I mandate this for my tenants.Their policy will cover things they cause: fire from stove error, water damage from leaving tub on, suit because their drunk friend fell and broke his head on the toilet, etc.

@char - Yes, there's a leaky roof and it caused water to get in the inside.