Creating a compound isn’t always as easy as building a second house in your backyard, even if you have the space. Some communities limit the number of buildings that can be built on a residential parcel. Many will allow one house and one pool house, but require that the pool house lack a kitchen or bedroom.

One way around this problem is to buy a compound made up of separate legal parcels and keep them separate. This way, you can have one house per parcel.

However, even then, selling a compound property could be difficult. Other family members may resent an outsider coming in and invading their privacy, and a prospective buyer may not wish to buy a home in the middle of someone’s family community. Read More