Buying a House in 2 yrs - Realistic Numbers?

[JustinH]

Here's my take. I've owned about 5 houses and investment properties.

Interest rates are so low, use the banks money.

Keep your 20 percent in your pocket. Your 50k-80k house may need some work, and you want to pay cash to do that.

My first house, we did a first time homebuyer loan through the bank. We got grants for EVERYTHING, and I kid you not at close we walked from close with a CHECK for like $1200.

House was like 48k, we rented the upper and lived in the thing for five years for nothing.

Get your financing in order with a broker or a bank, no realtor will even talk to you unless you are qualified to buy the house.

 

[pandus13]

Originally Posted By: Miller88
Well ... I found a house. I can comfortable afford a 20% downpayment (or even a 50% downpayment).

It's for sale by a realtor? What do I do now!?


you go on zillow, redfin, trulia and find the listing agent.
are you pre-qualified? if not talk with a bank credit union.

is your local market a buyer's or seller's market?

have a local inspector ready, or a good in the trades buddy with you when you walk teh house (so you know what $$ or $$$$ to put into the house after you buy).

decide yay or nay.

submit offer

get offer accepted (if not ping-pong offer counteroffer match begins)

wait for closing.

do closing (good title company and lawyer are a must; you never know when there's 5% great-great-great uncle)

it's yours.
change all locks
open garage
oil all doors
go repair garage floor (need good floors for your toys....) and oil supposed to be in vehicles not under
build shelf for oil deals build-up
go buy food.
go talk with neighboors (by now they know you as the crazy car guy)
build savings for "just in case"

wake up early in the morning
take cold shower
make a hot cocoa/tea
go on your patio
listen to the birds
pat your self on the back
enjoy the quiet-time
now you need more tools

 

[pandus13]

Originally Posted By: JustinH
Here's my take. I've owned about 5 houses and investment properties.

Interest rates are so low, use the banks money.

Keep your 20 percent in your pocket. Your 50k-80k house may need some work, and you want to pay cash to do that.

My first house, we did a first time homebuyer loan through the bank. We got grants for EVERYTHING, and I kid you not at close we walked from close with a CHECK for like $1200.

House was like 48k, we rented the upper and lived in the thing for five years for nothing.

Get your financing in order with a broker or a bank, no realtor will even talk to you unless you are qualified to buy the house.

OP/Miller88,
the broker saved our closing last time since the seller and seller's agent just took a vacation (no phone answers) the day of our closing but the tile company find some trouble in the pre-signed papers finding the legal way to avoid the problem. well worth the money against time lost

 

[SwampSurvivor]

No wife, just me. The house is well within what I can get for a mortgage; I can get a mortgage for more than twice the house' worth - and it's listed for less than I make in a year.

It, unfortunately, does not have a garage. There are ways around that. I can live with no garage for the price.

Depending on PMI would be, I could drop the downpayment. It is very outdated but I should be able to take care of a lot of it while I am still in the apartment.

I will call the selling agent and take a walk through before doing anything else. Then I can work with a buying agent, get a home inspection, make an offer with a few contingencies.

Syracuse is a buyer's market.

http://www.trulia.com/property/3224884470-216-S-Midler-Ave-Syracuse-NY-13206

This is the current house I am interested in. It is smaller than the other houses in the neighborhood. Looking at the pictures, it just needs a remodel. Over the years, I have done everything from propping up saggy floors, hanging drywall and doing insulation , plumbing and wiring.

It's not "the perfect" house, but it has room for the popup out back, a pickup and my two current vehicles in the driveway and I could put up a "shed" big enough to house a vehicle and still not violate any building codes.

 

[Pop_Rivit]

If you're comfortable doing the work, that's a great way to get started in home ownership. A lot depends upon the neighborhood-if this is the worst house in the neighborhood just about everything to do will increase value. If this is par for the neighborhood then I wouldn't touch it unless you see signs that the neighborhood is starting to be revitalized.

That house needs some serious work and has the potential to be well worth it. Like any home that is that old and that run down, there will be a lot of hidden issues as well; you need to be prepared to deal with them and make certain you have a contingency fund for repairs.

Make sure you contact the local utility and see what the heating and cooling costs have been for the last few years. That will give you an idea of how poorly insulated it is-unless there have been some hidden updates, a house of that vintage won't have much in the way of insulation.

Again, unless there have been some updates you'll also need to update and improve the electrical system-it would be a safe bet that it's only 60 or 100 amp service given the limited number of electrical outlets, and I would not be surprised to find some knob and tube wiring in there.

 

[hatt]

IF you're planning on getting a buyer's agent, go ahead and get one now. Let them show you some similar properties before moving on this one. That home has been on the market for a while. It will be there after you check out some comps that may be a better fit.

 

[SwampSurvivor]

Originally Posted By: Pop_Rivit
If you're comfortable doing the work, that's a great way to get started in home ownership. A lot depends upon the neighborhood-if this is the worst house in the neighborhood just about everything to do will increase value. If this is par for the neighborhood then I wouldn't touch it unless you see signs that the neighborhood is starting to be revitalized.

That house needs some serious work and has the potential to be well worth it. Like any home that is that old and that run down, there will be a lot of hidden issues as well; you need to be prepared to deal with them and make certain you have a contingency fund for repairs.

Make sure you contact the local utility and see what the heating and cooling costs have been for the last few years. That will give you an idea of how poorly insulated it is-unless there have been some hidden updates, a house of that vintage won't have much in the way of insulation.

Again, unless there have been some updates you'll also need to update and improve the electrical system-it would be a safe bet that it's only 60 or 100 amp service given the limited number of electrical outlets, and I would not be surprised to find some knob and tube wiring in there.


I'm fully expecting knob and tube wiring, no insulation ... that's just how the houses were built back then.

This house is on the low end for this neighborhood. The house next to it is significantly nicer. Houses in this neighborhood will generally go for $80-$120.

The nice thing about a house at this price point is there is a lot of room left in the budget for work as needed ... and I can do various work on it while I still live in the apartment.

I will be contacting a buyers agent first thing tomorrow! I have received a very good recommendation from a close friend. From what I understand the buyers agent can get access to show me the house too.

 

[JayhawkRoy]

That looks like a good starter home. A closer inspection should reveal some issues, but that home is similar to our first home. We were able to renovate and then sell at a good profit three years later. This enabled us to purchase progressively better houses as time went on.

Check out the basement closely. I don't know that area very well, but basement leakage are issues around here.

 

[Pop_Rivit]

Originally Posted By: Miller88

I'm fully expecting knob and tube wiring


Then you understand that most insurance companies won't write a new policy on a property that has knob and tube wiring, and without homeowners insurance you won't get financing. The few insurance companies left that will insure a property that has knob and tube charge a significant premium, and most of those will require that it be physically removed by a professional (not just inactivated or removed by Joe Homeowner) between 30 and 60 days after the policy inception.

 

[Mr Nice]

Yep. That's why I said not to fall in love with one house cause it might take substantial $$$ to get it up to current (no pun intended) electrical code and permit needed for inspection by the county.

Older houses can possibly be a money pit if you can't do the work yourself. What about the roof, plumbing, basement, etc... ?

 

[IndyIan]

Don't be afraid to throw in a low bid if they house has been on the market for a while too. Especially if you can have a short closing period. You never know what's going on with the sellers and they may just want it sold.
Also if you want a garage, its probably going to be much cheaper to buy a house with one, than it is to build one, if you can build one at all.

 

[SwampSurvivor]

Originally Posted By: Pop_Rivit
Originally Posted By: Miller88

I'm fully expecting knob and tube wiring


Then you understand that most insurance companies won't write a new policy on a property that has knob and tube wiring, and without homeowners insurance you won't get financing. The few insurance companies left that will insure a property that has knob and tube charge a significant premium, and most of those will require that it be physically removed by a professional (not just inactivated or removed by Joe Homeowner) between 30 and 60 days after the policy inception.



Knob and tube wiring is extremely common around here still. I know many people who have existing, live, knob and tube wiring in their home and they were able to get insurance.

 

[Mr Nice]

Looks like a nice starter home.

Call agent and take a tour of the house. Nothing to loose at looking at house.

 

[SwampSurvivor]

Will be looking at the house tomorrow. After starting paperwork on getting preapproved for a mortgage. That way as more of these houses pop up here or there I can look at them.

It's odd that this house has dropped $20K since it was listed.

 

[hatt]

Originally Posted By: Miller88
Will be looking at the house tomorrow. After starting paperwork on getting preapproved for a mortgage. That way as more of these houses pop up here or there I can look at them.

It's odd that this house has dropped $20K since it was listed.
That's not odd at all. Most people think their house is worth much more than the market thinks it's worth. By the time they finally figure it out their house is worth even less than it would have been because it's been sitting on the market for six months getting stale.

 

[Andrew1972]

With a price that low presume all plumbing and wiring is garbage going in. Does ny require licensed folks for those trades to perform work?

Looking back I purchased my first home similar although in most desirable small town in US according to some article and honestly regret not buying a better lot to expand home instead of process of buying/selling twice which cost plenty in fees and mortgages etc.

How much does it cost to reside in desirable school district?

 

[SwampSurvivor]

I can believe it. I have had a very busy year so I don't remember little details of house hunting, but it's very likely I passed this house over when it was listed at $59000 - for it's condition it is not worth that much.

 

[pandus13]

Originally Posted By: Miller88
I can believe it. I have had a very busy year so I don't remember little details of house hunting, but it's very likely I passed this house over when it was listed at $59000 - for it's condition it is not worth that much.

i know you said in previous threads you want to stay in the area no matter what, but if life trows you something (princess charming, a better job, yada yada), with a bit of lipstick/cosmetical, could you sale it for more or it will sit on the market for months?

oh: a double garage in my area, permitted is around $10,000 (varies by size/specs also)

also i know you want to be debt free, but i would take advantage of homedepot/lowes/sears/(other local big box/appliance store) 6-12 months interest free offers. sometimes this also qualifies for additional discounts even if you don't have trades/commercial accounts with them.

 

[pandus13]

Originally Posted By: Miller88
It's odd that this house has dropped $20K since it was listed.

when somebody is paying utilities, taxes and (maybe) mortgage on a sitting empty house???

 

[pandus13]

i just remember: go check the tax history of the house! you want to see if county/city/village likes to/or not dramatically increase taxes on fluff air values.
probably you may only qualify for homeowner exemption