Yes, you will likely run into appraisal issues. The reverse mortgage will encumber the subject property (main home). In order to include the garage, you will likely need to do a lot line adjustment, making the entire parcel one (garage and home). That should give you the most value. You may be able to fool the appraiser do the report as a single family home with a garage, without him/her realizing that it’s two parcels, however an underwriter will definitely be able to figure it out by the legal description on the preliminary title report and will condition to either do a lot line adjustment or have the appraiser amend the report, which could possibly mean finding new comps, etc, which could lower the value. This is a scenario in which we should spend some time on the phone discussing before you proceed with an appraisal.