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Should I combine my two lots?

I'm not sure if this is the right sub for my question, if there's a better sub let me know!

We purchased our home (Lot A) in 2018. We have a great interest rate, 3% and an affordable monthly payment. Last year, the vacant lot next door came up for sale (lot b). Lot B is almost the same size as our lot, minus the house. It has city water, a new septic tank and electric.

We took out a HELOC to purchase Lot B, with the eventual plan to build on it. But we can't decide if we should:

1.combine the lots into one parcel and build an ADU (fewer building requirements, we can keep more of our yard, cheaper)

Or

2.keep the lots separate and put a manufactured home in Lot B (more expensive, more building requirements, could rent it out for more).

If we combine the lots, how does that affect the mortgage on Lot A? I'm assuming we'd have to refinance, and I'd hate to lose our great interest rate. Whatever we build will be rented out until some of our elderly relatives need a place to live, and then they will take over the rent.

submitted by /u/pun_princess
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source https://www.reddit.com/r/RealEstate/comments/1kskdht/should_i_combine_my_two_lots/
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