2 homes on one property ? (square footage, appraisal, agents, investment)
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I realize you said you don't need a mortgage, but just keep in mind that when you want to sell it some day, potential buyers that do need financing may not be able to purchase it.
We are in TN and have seen some listings with 2 houses, in fact we almost went to look at one. However, I recall that some professional, and I just can't recall who, maybe the mortgage company, mentioned that it does create some problems. Sorry I can't be more helpful, just don't recall what they said, but someone involved (mortgage co, insurance co...) doesn't like it.
You also have to know the local zoning. You might not be able to sub-divide the property to sell the houses separately. Some jurisdictions also limit second homes on a single property to family members as residents. That was done here to allow farmers to build houses for their children on the farm property. Many of the farms here also have tenant houses.
I wonder what the reasons are behind the Insurance Co and or mortgage co not liking 2 homes... If one is a main house and one is a guest house.
But -- thanks for that info. Certainly something to take into consideration.
We had always thought we'd buy a huge chunk of land and subdivide then each kid could build their own homes... I never thought about the zoning issue though. I'm sure DH thought of it ...
I'm thinking it may be best to wait til the kids are on their own and get an Apt for the MIL, if the 2 home thing has too many issues.
I really appreciate all the input I got here. Much food for thought.
I have two houses on 10.4 acres and it wasn't hard to get financed. It's a main house with a guest house in the woods a mile an a half from the interstate, but you would never know it. It's quiet and park like.
I have two houses on 10.4 acres and it wasn't hard to get financed. It's a main house with a guest house in the woods a mile an a half from the interstate, but you would never know it. It's quiet and park like.
Must be local bank financing. Fannie, Freddie & FHA will not finance a property with 2 seperate homes.
If both improvements hold market value there should be financing available. However; it may depend on what type of value the additional structure reflects. "Use Value" may be the standard for one of the improvements -- if so, then many markets won't absorb this type of value tied to residential. Functional and External Depreciation may be measured before any financing is available, as well, to ensure there is no adverse affect on overall value.
If the additional structure doesn't hold any market value ('value in use' instead), and the neighborhood's supply/demand is volatile, or prices are still falling, then the additional structure most likely, and probably shouldn't get any consideration for financing, most likely.
If the additional structure is considered to be "contributory," then I would definitely attempt to purchase below market value in order to get favorable financing within the same prevailing conditions.
Edit to Add: this thread was started in March/year 2010 (why dig it up?) I noticed after I had posted.
A friend of mine built a house on her property for her parents. She has about an acre of land. They built a 700 sft 2 bedroom house for about 40k. She lives in AL. Some will buy a home with a very large attached garage and convert the garage into a MIL apt.
I live in Chanute, Ks. Several years ago, I purchased the property next to me that had a 3 bedroom, two story house on it. I wanted to add some additional land to my 1 lot that I live on. This place consisted of 1 1/2 lots with the house. We also figured the house would become a rental house if we didn't buy it and they set close to each other. Our house was built on the lot it sits on, with the minimum distance to the property line to the house next door, based on our city building codes. We wanted to build a deck off the dining room and this would now allow us to do it. Even though we owned both properties and took down the fence between them, we could still not get a building permit to build the deck due to the property line-building code issue. We were told by the city building inspector that our subdivision allowed two homes on one property, if we would merge the two properties together, thus eliminating the property line between the houses. We had our attorney do this for us. Now we have a legal property with a second home in our back yard, as we are on a corner lot and the second house was just around the corner. Then I built a 30 x 40 metal building on the back of the yard of the second house, with the end of the building on the "old" property line. All is now according to city codes. We are in the process of trying to sell it now and retire in a smaller home in another state. Our property is valued at just over $100,000 on our county taxes assessment. We hope to find a buyer you can get a loan for a property with two houses on it. It seems that mortgage companies have issues with this type of property. We rent the second home out and it does have a mailing address, but the property description is our address. Our home is a ranch style, single level home, with a Trex deck and one stall attached garage. It has a patio on one end and a cement slab on the other end, where an additional garage or room could be added. The second house is a 3 BR two story house with no garage, but could be built on the lot beside it. Both have fenced in yards. It would be an ideal place for someone to have with the rental house income and the large shop for use as a garage or woodworking shop as it is now. It has 12' high walls, so there is an upstairs storage area that I built in. It is all insulated as well, with a concrete floor. We did all these improvements to our property, with the thought of raising the value of our property. Now we are finding out that mortgage companies have issues with loaning money for places like ours. I have checked online and the same situation in some other areas have a main home and a guest house on them and are not a problem. Hopefully, we can work with the loan companies and get our place sold and we can then retire in peace!
Fred
Quote:
Originally Posted by tcs1366
Chet -- sorry - i should have been more specific.... Just in general.
We will be semi-retired and getting out of Chicago due to the taxes, and some where with warmer winters.
I'd also like to be around zone6 or 7, for gardening. I figure, that puts me -- from east to west... NC, Tenn, AR area. Maybe southern MO.
Personally -- I'd love 20+ acres, rural, good soil for gardening. The 2 house thing would be a huge bonus.
I just didn't know if this was common in most rural areas.
I"ve been looking in the NE Arkansas area as i've read its good soil and less populated.
We're pretty tired of the Chicago burbs.
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I have that!
