I’m looking at a property with minimal acreage but it has a huge barn on it since it was formerly a boarding facility in the city. The plan is to knock out about half the stalls, keep my personal horses and mayyyyybe a friend or two. We’ve gotten the pre-approval for a “normal” jumbo loan, but what I don’t understand is how banks look at the other things on the property (there’s a second house that generates rental income) for appraisal purposes.
No, we don’t need to have the income to afford it, and we might not even keep the second house, but I’m strictly wondering about the appraisal value. Are the additions (barn, arena second house etc) seen as a negative, positive, or neutral?
Also, I keep pinching myself. I had my horses at home growing up but not since I’ve been an adult. It’s a long time in coming!