Two Addresses One Property In Virginia

[lyle]

My wife and I own an historic property just outside Blacksburg Virginia.

What remains of the 19th century resort totals about 60 acres.

Within the perimeter of the property there are three 2 acre plots.

The mortgage we are refinancing is one of the 2 acre plots. (We own the other 54 acres)

On our 2 acre plot there are 2 habitable structures, one our house constructed in 2000, the other a 1000 ft. cottage constructed in 1850s.

We have rehabilitated the cottage and we have had a tenant in the unit continuously since 2007.

In the past the appraisals would not consider of value the rental unit ($700) per month.

We had the county add the cottage as a separate address.

Is there anyway to give value to the rental unit in an appraisal?

 

[Meandering]

I'm confused.

A 60 acre parcel with 3, two acre plots as separate tax parcel numbers?

Or you have one 2 acre parcel with two dwellings?

But the rental unit should be included in the value of the land that is the subject of the appraisal.

.

 

[lyle]

I'm confused.

A 60 acre parcel with 3, two acre plots as separate tax parcel numbers?

Or you have one 2 acre parcel with two dwellings?

But the rental unit should be included in the value of the land that is the subject of the appraisal.

.

 

[lyle]

So

I'm confused.

A 60 acre parcel with 3, two acre plots as separate tax parcel numbers?

Or you have one 2 acre parcel with two dwellings?

But the rental unit should be included in the value of the land that is the subject of the appraisal.

We own the property surrounding the two acre parcel, which includes our house and the rental cottage. The problem is that in the past the appraisals did not give any value for the rental unit (in fact in the most recent appraisal it detracted from the value) and I would like to refinance to make improvements.

.

 

[Deleted member 128537]

The short answer is yes. Typically this is a single family appraisal with the 1000sf cottage as an accessory unit. However there may be a problem if the zoning of the property is single family and there are 2 units on it. Is this a permitted use? Conditional use permit? It may be the previous lender didn't allow it because it was not a legal use. If it isn't legal and the cottage burned down or destroyed it couldn't be rebuilt. That may be why they didn't allow it be valued. They don't want to collateralize something that is not "permanent."

The long answer is "maybe, etc. etc. etc."

 

[Walter Kirk]

Don't confuse the postal address with the legal address ( your block and lot or APN). The property in question contains a single family residence and an accessory dwelling, inform your lender to determine whether it is willing to lend on such properties.

 

[Deleted member 130081]

An appraiser can appraise anything. Your lender will decide what they will consider as collateral for the mortgage or not. The appraiser will appraise what the lender asks them to appraise, based on what the lender wants to consider as collateral. Different lenders have different criteria, however in general, if an improvement upon a parcel has market value, it will be considered in a market value appraisal. If you are asking if the rental income can be used towards your income requirement, that is a lender/income issue, not an appraiser/collateral issue. If you are wondering if the investment potential be analyzed in relation to market value (considering rents in the value of the property), that can be done, and in fact is required to be done on all appraisals if possible, but is actually rarely done because it is most often impossible to do or the results of the analysis are not credible (due to a lack of available data from which to work with) - this would be called the Income Approach to Value.