Half Duplex Purchases?

Kiaser · Joined: 15 Oct 2006 Posts: 15

How exactly does someone purchase a half side of a duplex? Out of some houses we were looking for we found a duplex that is in a great neighborhood and we really like the lot/house. But the sale is for one half side of the duplex, where (I'm assuming) the owner lives in the other side. I've heard of purchasing a duplex, living in one end and RENTING out the other, but never selling the other side. What are the pro's and con's of getting into something like this? Does this affect resale value, property taxes, etc? Of course, I'd love to buy both sides but the other side is not for sale currently, and I'm sure there is no way to guarantee dibs on the other side if/when it ever comes up for sale.

chow · Posted: Wed Dec 06, 2006 10:23 am Post subject:

It's most likely a "Condo" or a Patio Home/Zero Lot line deed. Meaning the property is divided right down the common wall of the home, and you own the side of it that you live on. If it's in a "subdivison with a homeowners association, it's a "condo" and if you actually own the grass, and dirt and take care of the whole exterior-it's a zero lot line type set up.

The disadvantage of not owning both sides is-can't pick your neighbor, but you can't do that any where unless you're the seller. There no real disadvantage unless the people on the other side are loud, sloppy, etc. Most lenders treat these just like any other home loan.

If the home is not divided with a fire wall that goes from the foundation-all the way through the attic to the roof, then it would not be insurable for FHA financing. FHA will not insure loans on 2 or more units that do not have firewalls (Brick) that actually divide the property from ground to Roof. The crawl, basement and attic areas can not be shared.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Unless of course you use a renovation loan to have that put in ;)

chow · Posted: Wed Dec 06, 2006 2:03 pm Post subject:

Haplo wrote: Unless of course you use a renovation loan to have that put in ;)

huh? That would require tearing down most of the structure!

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

No job is too large!!

Kiaser · Joined: 15 Oct 2006 Posts: 15

Hmmm, maybe I shouldn't shy away from the property then. I would be getting into it as owner occupied, however I will be renting out rooms in it for a few years until I either can buy out the other side of the house as well or buy another house to live in and completely rent out the condo.

Now if I could figure out a way to get a contract for first dibs on the other side of the condo, as well as a set price for fair market value...

chow · Posted: Thu Dec 07, 2006 2:37 am Post subject:

Just do what every other red blooded american would do. March on over to your real estate records office located somewhere in your county recorders office, and look up who owns it.

It may even be the people living in it. (Most Realtor's can even tell you that with a few keystrokes)

Then just tell them if they ever decide to sell, you all can sit down and talk. The seller would save 7% on real estate commissions just by calling you first. :wink:

Some of this is just way tooooooooooooooooooo easy.... :wink:

Property records are public record.