A friend was renting a building where his wife operated a furniture store. The landlord approached my friend and asked him if he would like to buy the building. He did. It turns out that there was extra land involved. My friend split the lot and sold the excess land for almost what he had paid for the land and building. What a deal!
This doesn't happen very often, but many people have made money splitting off extra land from the house or other property they buy. It involves some work, but it can be very profitable.
In most municipalities splitting a lot into two can be done quite easily. Unlike splitting the land into multiple lots which would be subject to state subdivision laws, a simple lot split can usually be done through the planning and zoning department rather than requiring public hearings and city council approval.
The first thing to do is to check the zoning to make sure the lot split is allowable. One concern is that the size of the lot split off will meet the code minimum requirements.
In order to sell the new lot you will need to be able to give clear title. In order to give clear title you will need to have a survey completed which is acceptable to the title company. They will need to know that the property lines are correct and ensure that there are no encroachments on the land.
An application will be required by the city planning and zoning department along with several things, including the survey and preliminary title report, and fees to process the request.
The city will give final approval and you will be ready to sell off the extra land which will bring your overall investment down considerably.
Good luck.
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