General questions before bank appointment

The amount is already very ambitious. After completion, a value of 1.2 million euros is at stake. I can already imagine that the bank will go along with it. If you get into trouble, the bank will get its money anyway because of the property value. The money (repayment of bank loan + prepayment penalty = 930,000€) should be received by the bank after foreclosure = business. The bank does not care about individual fates. So even if the bank gives the OK, think very, very carefully about whether you want to do it.

Understood correctly. There will be 2 houses. One of them includes a [Einliegerwohnung].

For rent: 1x [Einliegerwohnung] approx. 40 sqm, 1x single-family house with 120 sqm.
Since family will be living there, it is significantly below the current rental level.
However, this probably does not simplify the overall situation with the bank.

I don't want or need to sugarcoat it for myself. I know what we can afford.
If it doesn't work out under these conditions, we will build at least one house less.

Should the property be divided?

First of all, nothing is to be shared there if I understand your question correctly.

Understood correctly. There will be 2 houses. One of them includes a granny flat.

For renting out:
1x granny flat approx. 40 sqm, 1x single-family house with 120 sqm
Since family will be moving in there, it is significantly below the current rental level.
However, that probably does not simplify the overall situation with the bank.

I don’t have to and don’t want to sugarcoat it. I know what we can afford.
If it doesn’t work under these conditions, we will build at least one house less

But that is quite harsh, especially if your own family is living in it and you essentially have a continuous rental loss.
Wolfrathshausen is not exactly cheap either if you look at the rental index there.

First of all, nothing is supposed to be divided there if I understand your question correctly.

But that means if something goes wrong, you can't even save your own house.

Purely hypothetically: You have already paid off 50% of the loan and something happens, then both houses are gone because both properties are built on one piece of land.

Even if so much has already been paid off. With a divided property, you can sell the investment property or put it up for foreclosure.