Duplex or Two SF?

[alebrewer]

If the two properties are adjacent, they could be legally assembled. If they are attached and there are no other units, they could be called a duplex. If they are not attached, they could be a two family property but, not a duplex.

A duplex is.. and only is... two dwelling units in a single building with no other units in the structure and one owner of the entire property. Two family properties can have other forms.

This is the layout - owned by the same entity, but legally platted as two separate parcels.

 

[Mike Ault]

This is the layout - owned by the same entity, but legally platted as two separate parcels.

View attachment 80836

Around here, that would be appraised as two SFR's. As long as it was constructed properly with a firewall going all the way to the roofline in between both units.

 

[sputnam]

This is the layout - owned by the same entity, but legally platted as two separate parcels.

View attachment 80836

Looks like it could become a duplex but, they would need to be legally combined. As they are now, it's two separate but attached dwelling units.

 

[alebrewer]

Looks like it could become a duplex but, they would need to be legally combined. As they are now, it's two separate but attached dwelling units.

Yep - and that was the training/collaboration opportunity I had with the gentleman - was that, but being owned by the same entity, and by zoning allowing duplex/2F, he now had two viable H&B options - one as assembled, and one as subdivided.

 

[Mark K]

Maybe slightly off the exact topic of assemblage....

A neighborhood of 50 duplexes was sold from one owner to one individual for about $60K/unit (about 10 yrs. ago).

He then split the duplexes by surveying the sites in half with a common wall and sold the units individually. He sold them for about $120K each and made a very nice profit. They weren't really worth $120K at the time but he got in with a California investment company and now the majority of them are owned by CA investors with the local guy managing most of them. CA people couldn't believe what a deal they were getting...a house for $120K, impossible. They sold fast. BTW, in the older sections of downtown Indy, they are doing just this. Splitting the old two-story duplexes and selling each half as common wall SFR. They sell for a lot more separately than as a duplex.

Kinda the reverse of the OP's assemblage idea. I imagine the assemblage could happen but I've never encountered a scenario where assembling two SFR into a duplex would result in the HBU. However, until they are assembled, they are two distinct and separate SFR properties.

 

[bnmappraisal]

Request to appraise a duplex. Preliminary research indicates that the units are separate parcels, but owned by the same entity. Would you appraise as duplex or as two townhomes?

(My bold) 2 separate parcels, 2 separate pieces of real estate ??? 2 separate appraisals ???

 

[bnmappraisal]

A smart lender, assumption H&BU is not a duplex but two single-units, will only need one appraisal.
Multiply the opinion of value by 2 for the LTV. Write a memo to the credit file explaining what was done and why.

(my bold) I think you mean 1 appraisal REPORT
No?

 

[alebrewer]

(My bold) 2 separate parcels, 2 separate pieces of real estate ??? 2 separate appraisals ???

Yep - as it stands, they are two spearate parcels of real estate. Based on the subject market - yes - two separate appraisals. It seems to me, however, that since they're owned by the same entity, were the market stronger for duplex properties than for two separate half duplex properties, one could present a strong argument for H&BU to be assembled (as they're owned by the same entity.

 

[Dublin ohio]

They sold fast. BTW, in the older sections of downtown Indy, they are doing just this. Splitting the old two-story duplexes and selling each half as common wall SFR. They sell for a lot more separately than as a duplex.

Have seen that happening for a while in the gentrifying areas of Columbus. 2-4 family properties being changed to either sf attached or condos. But many times it depends on the investor. Some look at long term investment and keep them as is for rentals. Other investores are looking to make money now and move on to the next project.

 

[BRCJR]

....................................................... I can easily see a scenario, however, where the value might be higher as assembled...

Very common in college towns.