Sell House/Rent Land? - Posted by J. CA

Posted by J. CA on July 12, 2001 at 18:32:12:

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Sell House/Rent Land? - Posted by J. CA

Posted by J. CA on July 12, 2001 at 17:32:25:

I have a quick question for anyone who has a thought on it. Are there any laws saying you can’t sell the house and rent the land to the owner? I know this is done all the time in mobile home parks, how about everywhere else?

If it’s perfectly ‘legal’ it would seem to me that this would be a nice alternative to regular landlording (read: no tenant problems, no damage to worry about) and provide a positive cashflow which increases year by year.

Re: Sell House/Rent Land? - Posted by Mark (SDCA)

Posted by Mark (SDCA) on July 13, 2001 at 11:41:25:

You certainly CAN do this. AD Kessler is a big proponent of it. THe problem I see is that banks (being banks) would be skittish about loaning to your buyer who is not buying the land. (Appraisal might be an issue as well. How many residential appraisers have ANY experiencing valuing a house with no land?)

Cheers,

Mark

Re: Sell House/Rent Land? - Posted by dandrews

Posted by dandrews on July 12, 2001 at 20:23:05:

This is actually pretty common in commercial real estate. I have also seen it done in residential but there was always seller financing involved in the instances I am familiar with.

Re: Sell House/Rent Land? - Posted by Douglas Lee

Posted by Douglas Lee on July 12, 2001 at 18:01:02:

I have had similar thoughts on this same subject. What if you separated the house and lot. Sold the house and took back a note from the new buyer then rented him the lot. Now lets say he defaults on the house note. Wouldn’t you be able to simply repo the house without the hassle and expense of a forclosure proceeding? This is done with mobile homes all the time. Why not with a bricks & mortar house? There are many cases of 99 year land leases whereby the lessee can put improvements on the property and even will it to his heirs however the land and all it’s improvements reverts to the lessor at some stated time in the future. Let’s hear what the experts have to say on the subject.

See Posts Below - Posted by John SirJohnathon Grounds

Posted by John SirJohnathon Grounds on July 12, 2001 at 17:47:31:

J.

See posts a few screens down.

John “SirJohnathon” Grounds
www.jrgholdings.com