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1/2 of the lot is been chopped off!

Discussion in 'Urgent - Help Needed' started by residentialguy, Sep 29, 2011.

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  1. residentialguy

    residentialguy Elite Member

    164
    Mar 24, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Minnesota
    I have an odd one on my hands. It's an old 1900 Victorian in a very nice artsy type neighborhood in Mpls. The home is amazingly well preserved and updated/upgraded. Then as I looked out the back deck, I look straight down into a parking lot of some small shops. There is a wall at the back of their property and it drops about 15' or so down to the parking lot below.

    Come to find out, the lot is 125' deep and the last 55' is part of the parking lot below! Apparently this was done back in the 1950's -the store owner made a deal with the homeowners back then and dug out the back 1/2 of the lot, put up a wall and pays them $250/mo rent!

    Now this is an issue. The lot is shorter...can't build a garage in back (since it has no back) but they are getting $250 month in rent, offsetting (to some extent) the lack of back yard.

    They can break the rent off at anytime....but they would have to fill that area up again. Cost to cure - God only knows.

    Here are some photos
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    Any suggestions????


    .
     
  2. Proactive

    Proactive Senior Member

    47
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    Sucks to be you.:shrug:

    But seriously...

    Is not the lack of utility offset by the rental income, as demonstrated by the long-term rental agreement by the subject and (at least one) neighboring property?

    Nah--couldn't be that easy.

    Still sucks to be you.:D

    Edit: Wait for CANative's post; he usually has a solution to these oddball situations. Greg?
     
  3. Webbed Feet

    Webbed Feet Elite Member

    31
    Feb 11, 2005
    Professional Status:
    Certified Residential Appraiser
    Reinspect after it snows ? :laugh:
     
  4. residentialguy

    residentialguy Elite Member

    164
    Mar 24, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Minnesota
    :laugh:

    **whacks proactive and webbed**


    I was thinking along the offsetting line. Adjust for the "adverse" parking lot view. It has inferior lot utility, but is offset by the $250/mo rent.
     
  5. Mejappz

    Mejappz Member

    0
    Dec 16, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida

    Yes...Runaway!! Or like Proactive said wait for CANative to come along and cook something up for you. LoL
     
  6. Paul Isolda

    Paul Isolda Senior Member

    2
    May 20, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Connecticut
    Had a situation like that years ago. The parking use was not allowed in the residential zone. Not long after I notified the lender of the situation the deal was dead. Paid for what I had done up until then and bye, bye. No report.
     
  7. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    286
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    30 Years
    5%
    $250 monthly payment
    $46,764.
     
  8. HF Mudd

    HF Mudd Senior Member

    28
    Jul 31, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Is there a written rental agreement?
     
  9. Dan Umstead

    Dan Umstead Senior Member

    23
    May 26, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Georgia
    It looks like the two neighboring properties may have the same situation.
    Try to go back in time and analyze the subject and the 2 adjacent properties sales prices compared to unaffected properties, and determine the percentage of the effect.
     
  10. residentialguy

    residentialguy Elite Member

    164
    Mar 24, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Minnesota
    Yeah, already did that. No sales available.
     
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