Still looking for a berkeleying house

Streetwiseguy wrote: I think I have said this before, but around here $100k buys you a 25 foot lot and a pup tent.

docwyte wrote: $100k near me buys you nothing. Even $200k gets you a squalid hole. Anything priced under a jumbo mortgage gets snapped up instantly. Even stuff in the $750k range sells in a day...

A house a block away from me just sold for $350k. The house has already been torn down.

xflowgolf wrote: Since you have access to a decent cash pile via the parent loan, and given what sounds like are low wages in the area, have you looked at county tax foreclosure auctions and the like?

I have done some looking into it. They are few and far between here, and most of them are completely trashed - doors left open, varmint damage, squatters, missing roofs, etc.

One of the reasons stuff is so expensive right now is that everybody is shopping and there are so few houses on the market.

I decided last night to up my search range on realtor.com to $110k. Found a nice property with a small barn, 2-car garage, and a 4 bedroom house.

The garage was nice. The house needs to be condemned. The roof has leaked so much most of the floors had holes rotted through them. Every surface was covered in raccoon crap, there were rats all over the place, and the plaster was falling off the walls.

I called the listing agent and even HE agreed that 109k was stupid, but the owner bought it sight-unseen, has never seen the house, and insisted on listing it at 109k.

I told the agent (with about 85% seriousness) that I'm offering $40k. Maybe the owner will get some sense knocked into him. At $40k I could tear down the house and build something small on the foundation.

Which brings up a good question. Buying a really crap joint and tearing it down.... cost effective?

curtis73 wrote: I decided last night to up my search range on realtor.com to $110k. Found a nice property with a small barn, 2-car garage, and a 4 bedroom house. The garage was nice. The house needs to be condemned. The roof has leaked so much most of the floors had holes rotted through them. Every surface was covered in raccoon crap, there were rats all over the place, and the plaster was falling off the walls. I called the listing agent and even HE agreed that 109k was stupid, but the owner bought it sight-unseen, has never seen the house, and insisted on listing it at 109k. I told the agent (with about 85% seriousness) that I'm offering $40k. Maybe the owner will get some sense knocked into him. At $40k I could tear down the house and build something small on the foundation.

What is a vacant lot worth?

I think you're being unrealistic with what land is worth. But I don't know the area.

curtis73 wrote: I decided last night to up my search range on realtor.com to $110k.

This is your primary hurdle right here. $110k shouldn't even begin to stretch your budget. You could probably be pretty comfortable up to $140k based on the numbers you gave earlier. And still have a pile of cash to cover upgrades or the unexpected.

At $110k, you're battling against investors with cash, mostly from out of state. ON both the buying and selling sides of a property. They pay more than locals because to them, a house for $110k is super cheap, even if it is a dump. Most probably bought over the last few years, and are looking to unload now that the market is hot (contributing to higher market prices). Or, they're looking to get the last remaining cheap properties and hope the market continues to climb (reducing the supply of houses in your preferred price range). If you can raise your price range over $120k, I'll bet you have better luck and more options. That's probably high enough to avoid most of the bottom end foreclosure investors and flippers. You'd still be competing with local buyers, but it would likely be people more like you vs cash heavy out of staters.

The bottom line, is in this market you Aren't likely to find what you consider a good deal. The best you can realistically hope for, is a good deal relative to the current market, which is bonkers in favor of sellers. Otherwise, you'll have to be exceedingly patient and very lucky.

curtis73 wrote: Which brings up a good question. Buying a really crap joint and tearing it down.... cost effective?

Without knowing the area, it's hard to say. Use something like Zillo to evaluate the value of other houses in the area and then see if you can make the numbers work. As you mentioned earlier, bringing utilities to a property isn't cheap. Buying an essentially condemned house and starting over should at least give you a head start with utilities.

BTW - I'll be heading out to Carlisle for the import show in a couple of weeks if you are still interested in that York A/C compressor.

OT, but I sure wish I could grasp how people make money on houses.

When I got married, my then wife owned a house. I didn't want a house, but owing to the way Michigan law works, I got stuck with the house in the divorce. I couldn't afford the house, so I sold it at a loss of $35,000.

Fast-forward a few years and I moved in with the current SWMBO who owned a house. That house fell apart so badly that it became unlivable, and the repairs would have cost more than the house, just to get it up to code. She wound up walking away, and the bank sold it at a $10,000 loss.

Maybe I just got unlucky, but buying a house scares the crap out of me. I'm a confirmed renter for life.

Just crazy how diffrent the market is in diffrent places. 100k still buys a nice house in this area. My house payment is well under what alot of peoples car payment is.

mtn wrote: Can you rent one of the 3 RV's from mom and dad? Are there hookups there? Take care of #2 and showers at work or the gym?

That is a wise approach, thank you.

Living in RVs is totally my thing, but not cool with zoning boards. I've only found two townships around here that allow it and both are pretty far commuting.

Ian F wrote: I'll be heading out to Carlisle for the import show in a couple of weeks if you are still interested in that York A/C compressor.

Yes, I am. Thank you. What was your poison again? I'll have a case of it ready.

curtis73 wrote:

mtn wrote: Can you rent one of the 3 RV's from mom and dad? Are there hookups there? Take care of #2 and showers at work or the gym?

That is a wise approach, thank you. Living in RVs is totally my thing, but not cool with zoning boards. I've only found two townships around here that allow it and both are pretty far commuting.

Don't ask don't tell

STM317 wrote:

curtis73 wrote: I decided last night to up my search range on realtor.com to $110k.

This is your primary hurdle right here. $110k shouldn't even begin to stretch your budget. You could probably be pretty comfortable up to $140k based on the numbers you gave earlier. And still have a pile of cash to cover upgrades or the unexpected.

Agreed, but there are some caveats.

Originally (years ago) mom and dad gave me a loan for $60k which has been sitting in an investment account and (along with interest, dividends, and some savings thrown in) it is getting close to $80k now. The plan was to use that to buy a house for cash and start paying mom and dad $300/mo. I know that is a lot of private info, but I just don't care

So first, its easy to say $140k would be easy, but with slightly higher than average taxes plus insurance, that could easily make a $800/mo payment with %20 down. That's 40% of my income. BUT.... I also owe $300 to mom and dad. $1100 month isn't feasible.

So I could put (lets say) $50k down which would only drop me to $700/mo.

The cash is a double-edged sword. I could combine the cash and loan, but I'm still going to be shelling out a big total. The option is there to just refund the loan amount to mom and dad and rely on bank alone, but interest, yadda yadda.

My point in keeping it cheap is because its how I live. I won't compromise that. Period. I will not be forced to stress over keeping a job, finding a new job, or climbing a ladder in a job I hate just to afford a house. Its just not my way. I'm doing great work for low pay because I choose it. I'm not saying that I'm poo-poo-ing your thoughts, because you are entirely correct. I'm just making a clear statement of my goals and how I choose to operate. And I do realize that is what is causing me headaches. My hope was that reaching out might turn up some ideas that I hadn't thought of. The only house I ever bought was cash bought for $52k all in, and then the ex got a loan and wrote me a check when she divorced me. But life was great, then. I could work fun jobs I loved because all I had to pay was taxes and utilities. If I lost a job, didn't like a job, or wanted to travel or do charity work, I could tell the boss to pound sand for a while. Now that I'm working at a non-profit theater, I am not eager to lose that job ever, but who knows what the future of any non-profit arts group is. I can't plan on tenure, raises, or even having a job tomorrow.

BTW... I did call the bank and have my pre-app ceiling raised to $120k. Not that I'll use that much, but I at least gave myself wiggle room

mtn wrote:

curtis73 wrote:

mtn wrote: Can you rent one of the 3 RV's from mom and dad? Are there hookups there? Take care of #2 and showers at work or the gym?

That is a wise approach, thank you. Living in RVs is totally my thing, but not cool with zoning boards. I've only found two townships around here that allow it and both are pretty far commuting.

Don't ask don't tell

If only it were that easy. Mom and Dad will pull the RV down from the barn and plug it in in the driveway to pack it for a trip. They've been warned several times by the township that plugging it in looks like staying in it and they could be cited.

Just for plugging it in to power lights and the fridge for packing. Seriously.

dropstep wrote: Just crazy how diffrent the market is in diffrent places. 100k still buys a nice house in this area. My house payment is well under what alot of peoples car payment is.

True. This is my old house in Pittsburgh. Over an acre with a 3bd/2ba house for $52k.

The old digs

Buying a really awful property might actually be worth further investigation.

Moreso IF there is a working well and septic system, a driveway, etc. New construction usually has high impact fees, and as you noted utilities like well and sewer are not cheap to get started.

Bonus points if the foundation is solid.

In reply to curtis73:

We actually think a lot alike in regards to housing and what it should cost, vs the freedom of not having a large mortgage or having to work to afford the house. I was just presenting the only realistic way that I could see to get you what you want, in a timely manner. Hopefully somebody else will come up with a suggestion that leads to an epiphany.

In reply to curtis73:

I'll sell you our 8800 sq-ft building that includes 3500 sq-ft of storefront/workshop space, 3500 sq-ft of 2nd floor living, and a 1750 sq-ft 3rd-floor for $100k...but it's in IL, so that may present some logistical challenges for you.

curtis73 wrote:

Ian F wrote: I'll be heading out to Carlisle for the import show in a couple of weeks if you are still interested in that York A/C compressor.

Yes, I am. Thank you. What was your poison again? I'll have a case of it ready.

No need. I just want it gone, so either to you or the scrappers who frequent my area. I put stuff to the curb a lot, so they love me. But if you find a 6-pack of a stout I've never heard of, I won't turn it down.

I suppose one issue you are running into is I think housing values are somewhat influenced by the proximity to Baltimore & DC. The area is just on the outer fringe of the commuter radius. Then there will always be a certain level of stability around the PA govt, which likely keeps prices in the area around Harrisburg higher than in some of the other areas of PA.

Yes, the peace of mind that comes with living without debt is addictive. Part of me would like to buy a new car, but a more powerful part of me has zero desire to take out a car loan again. At least not yet.

curtis73 wrote:

dropstep wrote: Just crazy how diffrent the market is in diffrent places. 100k still buys a nice house in this area. My house payment is well under what alot of peoples car payment is.

True. This is my old house in Pittsburgh. Over an acre with a 3bd/2ba house for $52k. The old digs

Is the sq ft listed in that ad correct? I don't see how it's possible to have a 3/1.5 house in 600 sq ft.

My one bedroom apt in downtown OKC is 700 sq ft and I'm struggling on how to arrange the living room with a TV, love seat, chair and desk for when I work from home.

In reply to z31maniac:

Tiny bedrooms. But I agree that does seem off. Almost like they aren't counted the second floor bedrooms in the sq ft calcs.

I've seen cases before where it appears they only calculated square footage based on one floor in a two story house too.

Would the teardown house be in an area where you're allowed to bring a mobile home? Might make sense to find a used mobile home (they have ZERO resale value) and set that up on the site while saving up to build.

Pete Gossett wrote: In reply to curtis73: I'll sell you our 8800 sq-ft building that includes 3500 sq-ft of storefront/workshop space, 3500 sq-ft of 2nd floor living, and a 1750 sq-ft 3rd-floor for $100k...but it's in IL, so that may present some logistical challenges for you.

Woah. Where in IL?

z31maniac wrote:

curtis73 wrote:

dropstep wrote: Just crazy how diffrent the market is in diffrent places. 100k still buys a nice house in this area. My house payment is well under what alot of peoples car payment is.

True. This is my old house in Pittsburgh. Over an acre with a 3bd/2ba house for $52k. The old digs

Is the sq ft listed in that ad correct? I don't see how it's possible to have a 3/1.5 house in 600 sq ft. My one bedroom apt in downtown OKC is 700 sq ft and I'm struggling on how to arrange the living room with a TV, love seat, chair and desk for when I work from home.

Yes, its correct... sorta.

Because its a 1.5 story, you can't count the second floor as legal square footage. Its technically twice that number. But the footprint is 24x24'.

Ian F wrote: In reply to z31maniac: Tiny bedrooms. But I agree that does seem off. Almost like they aren't counted the second floor bedrooms in the sq ft calcs.

The bedrooms weren't huge, but they were adequate. The master was actually quite large and had tons of room with a King bed, two nightstands, a dresser, and blanket chest. It was one of those where the third bedroom was off the master, so it was two large-ish bedrooms and one small captive bedroom which we turned into a huge walk-in closet. The plan was to replumb and move the laundry in there as well.

If you look at the front of the house in that first picture, the Master was where the left dormer is, captive was straight behind in the rear left dormer. Guest bedroom was in the back right dormer, full bath in the front right dormer. Then downstairs had another full bath under the one upstairs (it was upgraded but not permitted, so the MLS still shows it as a 1.5 bath). Then the downstairs was sorta divided in thirds; front left living room, back left dining room, back right kitchen.

I was amazed at how much space there was for such a tiny footprint.