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Post by Deleted on Dec 12, 2019 12:31:49 GMT -5
Assuming my house closes next week as it's supposed to... There are currently 2 houses available in the area where I want to live that I am considering. House #1: The Victorian www.realtor.com/realestateandhomes-search/Harney-County_OR/sby-1#M1332180943I've been looking at this house since the first day I started watching the market in the area. I was originally listed for $150 and they dropped it down to $125 a month or so ago. It's owned by a construction company who supposedly purchased it to house their employees but the project changed and now they want to sell it. IMHO, it's still overpriced as it was purchased in April 2019 for $108.5. My offer on it would probably be $110 contingent on their fixing the electrical problem it has. I've seen the inspection report and it has Romex in it from the remodel but has 2 electrical problems that require immediate fixing. #1 is the inspector didn't detect grounding in the outlets and #2 is two circuits were connected to one breaker. I LOVE this house. However, I'm not thrilled about 2 stories and I think it would be expensive to keep warm in the winter. It's also bigger than I need and on a bigger property than I really want to pay to have a fence installed on. House #2: The Cheaper Fixer www.realtor.com/realestateandhomes-search/Harney-County_OR/sby-1#M1758461535This house is owned by the bank and was a reverse-mortgage foreclosure. This house has one known problem - a plumbing leak. The plumbing was winterized and a "minor" leak in an unknown location was detected. It will need to be pressure tested and wherever it's leaking fixed. It's not on a slab and has a basement/crawlspace and shows no signs of water damage, so probably not a huge deal but it's being sold as-is by the bank. This second house is more of what I had in mind. The first thing I would do is remove all the nasty flooring and install something I like. It also needs paint and some work in the second weird bathroom. At this lower price, I would have plenty of money to make the improvements I want. I think I would try an aggressive offer of something like $80K and see how that shook out. Thoughts? With the understanding that I can't/won't rent and this area just doesn't have a ton of options available in the middle of winter and I can't/won't stay living here all spring to find something else... I really don't care that much about where exactly in town I live and will be limited to whatever options are on the market which isn't ideal but it is what it is.
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hoops902
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Post by hoops902 on Dec 12, 2019 12:36:53 GMT -5
For me, I always believe in going with the cheaper fixer if you've got the cash to adequately fix it up and know the problems going in.
It also doesn't make a lot of sense to me for someone like you to be buying more house than they need...it's not like you are growing into it. I'd want something small, cheaper to heat/cool...and old Victorian sounds like a nightmare in that regard (even though it looks cooler architecturally).
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Post by Deleted on Dec 12, 2019 12:52:02 GMT -5
For me, I always believe in going with the cheaper fixer if you've got the cash to adequately fix it up and know the problems going in. It also doesn't make a lot of sense to me for someone like you to be buying more house than they need...it's not like you are growing into it. I'd want something small, cheaper to heat/cool...and old Victorian sounds like a nightmare in that regard (even though it looks cooler architecturally). I'd love about 500' with a big shop/garage to house my saws and business stuff. But, not a lot of those smaller houses seem to show up on the market in this area and many of the really small ones don't have any garage/shop space. I also have a bit of an issue that my son may end up living with me at some point, so a really small house could end up being a nightmare. Assuming I drop $40K on a truck and $90K on a house, that would leave me $130K in the bank. I'd do all the work to the house myself, minus fixing the plumbing leak and perhaps having a large soaking tub installed in that weird second bathroom. I'm a bath person, and with option 2 I could easily afford to do that and probably would.
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haapai
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Post by haapai on Dec 12, 2019 12:57:48 GMT -5
I'm not sure if it is wise for you to be posting these links to properties that you are considering buying.
OTOH, not the Victorian. Also be aware that if the water has been shut off, you'll have to pay to have it reconnected for the inspection and that leaks do not always immediately manifest when the water is turned back on. My inspector did his best in the tight window that the water was turned back on, but not every leak leaked during that time and the basement was in such rough shape that the evidence of prior leaks was hard to discern.
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Post by Deleted on Dec 12, 2019 13:13:21 GMT -5
Also be aware that if the water has been shut off, you'll have to pay to have it reconnected for the inspection and that leaks do not always immediately manifest when the water is turned back on. My inspector did his best in the tight window that the water was turned back on, but not every leak leaked during that time and the basement was in such rough shape that the evidence of prior leaks was hard to discern. I'd have to have the water turned back on to live there and in this case the bank won't make any repairs. I've made an inquiry as to the cost for the pressure testing because that will help determine an offer price. I'd use the cost to test and the max. price to fix a major leak such as along the buried main as a consideration.
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giramomma
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Post by giramomma on Dec 12, 2019 13:24:20 GMT -5
I love the victorian. Barring something being completely wrong with it it's the one I would choose.
What else do you want to do with your time besides fixing up the house and working? Because in your situation, I'd want to start doing things I loved. Maybe you love home reno. I would love, to say, read a book over tearing up a house and redoing it.
I wouldn't get too excited about buying more house than you need. I mean, honestly, what do you really "need"? I'm sure you could get away with a couple hundred square feet. By that measure, even the second house is "too big." What kind of heat does the victorian have? If you are talking electric baseboard heat in a four season climate with an average snowfall of 4-5 feet a year, yes I'd be concerned. Othewise, I'd just experiment to find ways to mitigate the costs. Why do you need a fence? I grew up with dogs. My parents had a 3/4 of an acre. No fence. Now that I have kids...we don't have a fence.
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haapai
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Post by haapai on Dec 12, 2019 13:45:41 GMT -5
I definitely took heating costs into account when I was searching for my cheap forever home. That pushed a whole lot of pretty and roomy Victorians off the list even before I started thinking about how buying one of them would mean constant painting.
FWIW, the house that I bought was bank-owned and that played Mary Todd with the escrow account for a while. I had to prime the escrow account and fund it based on what the bank had paid in property taxes in the previous year, which was a lot less more than the property taxes that I actually paid. I got huge escrow refunds for a couple of years until the mortgage company started using the property taxes that I was paying when making escrow calculations.
I was very glad to have done the research into how property taxes were assessed in my state prior to buying the place and I suspect that not everyone does this. ETA: A whole lot of people just look at what the prior owner paid in property taxes and assume that they will pay a similar amount.
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gs11rmb
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Post by gs11rmb on Dec 12, 2019 13:47:13 GMT -5
I vote second house. The first is charming on the exterior but pretty ugly inside and looks like it needs work (apart from the kitchen). The second house is a lot cheaper to buy and maintain as well as update.
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busymom
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Post by busymom on Dec 12, 2019 14:07:07 GMT -5
My main problem with house #2 is, there appears to be a LOT of work to do on this house. Are you sure you'd have the time and energy to get to it all? On paper, house #2 makes more sense, but I'd probably get a professional out to inspect house #1 first. And, if there's a chance any of your kids might need to move in with you one day, house #1 appears to be more "ready". FWIW, DH has a sibling who bought a house that looked a lot like option #2. They'd planned to buy it, and fix it up. That was 20 years ago. Guess how far they've gotten...
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haapai
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Post by haapai on Dec 12, 2019 14:13:25 GMT -5
Yeah, but if one of her kids moves in with her, will that child be self-supporting? The cheaper, smaller house may be the better one to own if things turn out that way.
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haapai
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Post by haapai on Dec 12, 2019 14:18:26 GMT -5
Is the garage at the second house heated? How about insulated?
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Works4me
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Post by Works4me on Dec 12, 2019 14:24:39 GMT -5
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jerseygirl
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Post by jerseygirl on Dec 12, 2019 15:25:08 GMT -5
House 1 seems it will always be more valuable Looks in much better shape than house 2 House 1 will be great when your kids come to visit House 1 you can have a dedicated room for your business
You’ve had a miserable experience in former sold house, be good to yourself!!!
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crazycat
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Post by crazycat on Dec 12, 2019 15:27:50 GMT -5
I dont know about Oregon but here in California, it can take quite a while to go through the buying process on a bank owned foreclosure. Something to look into and think about also .
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haapai
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Post by haapai on Dec 12, 2019 15:40:17 GMT -5
House #3 looks twice the age of either of the others, despite being built in 1986. I see nothing cute about it.
It's on a corner lot, has a carport instead of a garage and lists a chicken coop, room to park an RV, and a horseshoe pit as amenities. Why are you even mentioning this dud to our dear Shasta? What has she done to you that makes you suggest this place?
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Tiny
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Post by Tiny on Dec 12, 2019 16:55:32 GMT -5
OK, here's what I see: 1st house - it's gray (sez Flipper to me). It's got alot of roof lines expensive when it needs replacing AND lots of peaks and valleys for leaks. It's got alot of trim and decoration that need upkeep (painting). It's got alot of rooms in weird shapes and configurations. 4 bedrooms in 1500 sq ft - can you even get a queen sized bed in to any of these rooms? Small kitchens are ok... but that sink - right up against a "wall".... that's gonna be annoying. 3 bathrooms... do you really need that many and are you willing to go around monthly and run water/flush toilets in the unused ones to keep them functional? Then there's the big empty lot next to the house... what happens when it gets built on (say some sort of multifamily housing - so the density goes up - more people more cars in the current space.) While I love the "old house" and decorative roof lines and trim on the house - I'd be thinking "money pit" in upkeep. 2nd house. It's on a corner (not fond of corner houses it's a bias I have. ) but it's not on a busy street so not so bad. And there's a church across the street. How busy does it get on sunday mornings/afternoon weddings? It's got better square footage 3 beds/2 baths in 1350 sq ft. Not sure if the room with the water heater is a bed room.... is that even code/allowed so maybe it's a 2 bed/1 bath. It has rectangular rooms - you can probably get a queen bed in atleast one of them. What we are shown of the kitchen is OK sink/stove cabinets where they should be. Depends on what they aren't showing (the fridge area/back door maybe?) It doesn't have a front door as per se -- it's got a patio door. didn't see a back door. Not sure How I feel about this. It looks like an addition was added to the original house... would need to access how well it "joins" with the original house. It definitely needs some "elbow grease" but nothing screaming "run away" from the photos. I like the outbuilding. the car port could be enclosed to increase the garage size. Concerns - ashpalt shingle (maybe asbestos) OK if you maintain it - removing it (asbestos) could be costly. Would want to do a walk thru/personal inspection of this house - which means I'm more interested in this one than the Gray Flipper house.
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dannylion
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Post by dannylion on Dec 12, 2019 17:14:14 GMT -5
House #1 looks like a money pit. It looks okay on the outside, but the inside is kind of ratty and sad in comparison. If it were the worst house in a really nice neighborhood, it would make sense to invest the money and effort it needs. Otherwise, it wouldn't be something I would consider, but I'm not the one buying the house. So, that's just my opinion, for what it's worth.
House #2 needs a lot of work and, it seems, has a water problem? Unless the garage/shop buildings meet the needs of your business and equipment better than anything else available in the area, that one doesn't look like a good option, either. Again, just my opinion.
It's hard to tell from pictures, though. How do those houses compare to other options available in the area where you want to live?
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sesfw
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Post by sesfw on Dec 12, 2019 17:50:27 GMT -5
I know my suggestion isn't a pleasant thought but could you find a place to rent for a while until something you feel right about comes on the market?
#1 home looks like a money pit to me. It's a lovely to look at home, but for me it's too much. Also as I get older I don't need stairs.
#2 home looks like a lot of work to even get it livable.
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Post by Deleted on Dec 12, 2019 19:14:46 GMT -5
I like N Cedar as well, but it's under contract already.
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haapai
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Post by haapai on Dec 12, 2019 19:49:04 GMT -5
This is sorta off-topic but it might help you.
If you sell your current property before April 15thish 2020, one of the best moves that you can make might be making a $12K to $14K contribution to a Roth IRA. Your age and income (as in not enough earned income) may limit how much you can contribute, but damn, if you can initially fund one of these buggers with windfall income, you've got a dandy little slush/medium-term fund going.
If you manage it right, and contribute to it regularly, this little so-called retirement vehicle can hold your emergency fund, your property taxes, and what you have saved up for your next vehicle. It can earn investment-type returns on savings that would otherwise rot in savings accounts. Creditors generally can't touch it and it isn't considered an asset in most asset-based relief programs. It might even get you a piece of the Saver's tax credit that you would have otherwise have passed up.
The tricky parts of this maneuver seem to be overcoming the word "retirement" and setting up some sort of controls over what you put in and what you withdraw.
I'm pretty shocked that I had not realized how flexible and useful and fungible a Roth IRA was until now. Please take a look at what it offers. There's a lot more to it than just the basic bet on what your current tax rates are and what they will be in retirement. You may be amazed at what this thing can do for you. The Roth IRA is set up in such a way that it treats recipients of windfalls very, very kindly, as long as they understand what they are signing up for.
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Deleted
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Post by Deleted on Dec 12, 2019 20:03:38 GMT -5
My broker said today that we are on track to close next week. I'm surprised no one mentioned the freakish bathroom of the Victorian with the weird toilet orientation. That's clearly a DIY don't. lol I like working on houses and plan to make this next house how I want it to be. DH and I had the habit of living with whatever was there when we moved in and then fixing things up just in time to sell... This time I want to reverse that trend so I can enjoy where I live. I can do paint, drywall, flooring, plumbing, etc... myself. I won't do more than replacing receptacles and light fixtures when it comes to electrical. Every time I had to replace a 220 pump in my old house it would take me about an hour to talk myself into touching the wires. I'll be in the house for a few months before the weather/roads are decent enough to explore the backcountry and don't have to work during that time, so I don't have any issue with spending time rehabbing. Since I'm not moving in with any furniture it should be fairly simple to paint and replace flooring. Nothing to move around. In house 2, I'd pull out all that disgusting carpet ASAP and probably put down a laminate of some sort in the entire house. Then I'd put some big area rugs down since solid-surface floors and dogs are an issue. I hate carpet and don't want wall-to-wall in my next house. With area rugs you can always wash or replace them if they get gross. That water heater situation needs some modification. It appears to be sitting in a bedroom. If nothing else, I'd build it a closet to hide it. I'd like it replaced and the new one put on some sort of drain pan in case of failure. When the one in my mobile failed it flooded 2 bedrooms and a bathroom... Ideally, I'd like to move the water heater to that weird second bathroom with the odd shower stall or into the basement. Alternatively, I'd love to tear out that shower stall and replace it with a soaking tub, since I'm a bath person and seriously miss my garden tub. I'd planned to get some costs from the plumber who would test the plumbing to find the existing leak. I'd need a fence. My dogs are both large breed and aren't used to living in town and around cars. I wouldn't be able to leave my dogs outside when I wasn't home and expect to come home and find them still in the yard if another dog or cat happened to run by... They spend most of their time in the house and can be left inside, but I think I'd want a fence. I could do one of the shock collar varieties if necessary, I guess. I love the look of the Victorian but agree it needs a lot of work, would be a lot of upkeep, and I think heating with a monitor and those wall electrical heaters would be really expensive. It's really cold in Burns in the winter and the season is pretty long. And all those windows and glass doors are an issue for heat retention and safety. I love all those odd shaped rooms though and agree it's a much nicer looking house. It would also have some nice art studio space upstairs and has a shop to cut rocks. I am tentatively planning a trip up the week of New Years. Both listing agents have said they think I could get either house closed with a 14-day escrow since I will be paying cash. I also plan to see anything else that happens to come on the market by then that's in the same price range and isn't a mobile home.
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laterbloomer
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Post by laterbloomer on Dec 12, 2019 20:04:40 GMT -5
Why is it narrowed down to just these two?
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Post by Deleted on Dec 12, 2019 20:26:13 GMT -5
This is sorta off-topic but it might help you.
If you sell your current property before April 15thish 2020, one of the best moves that you can make might be making a $12K to $14K contribution to a Roth IRA. This is actually one of my plans. Since I am self-employed it would help offset some of my tax liability for the year. I need to find a place for a big chunk of cash that I don't want to linger in my checking account. I'm going to get about $265K at closing. After I buy a truck, pay some bills, and buy a house, I should still have over 100K. I want about 20-25K available for next year's expenses and to fund some business equipment/supplies. I don't plan on taking all year off of working for other people, but I do want ample time to change what I've been doing and build up my own businesses while I have the opportunity. For 2021 I plan to fund life from working again and not from savings. I hope that will be some private writing clients, my Amazon book royalties, and my art/lapidary website/wholesale sales. I need to find a place for the rest of the cash because I plan to keep it around. I need to pay for healthcare and that will also be a consideration. Oregon has the subsidies and they only look at income not assets. That should keep the costs down. Hopefully.
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Deleted
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Post by Deleted on Dec 12, 2019 20:28:49 GMT -5
Why is it narrowed down to just these two? Well, there's basically nothing else on the market currently... This time of year there isn't a lot of inventory to choose from.
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Deleted
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Post by Deleted on Dec 12, 2019 20:32:14 GMT -5
And you can't/won't rent short-term why? I would think scoping out the area for awhile would be helpful.
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Deleted
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Post by Deleted on Dec 12, 2019 20:47:28 GMT -5
And you can't/won't rent short-term why? I would think scoping out the area for awhile would be helpful. Because the area is very rural and doesn't have many rentals. The few houses I have seen for rent are like $1400 a month. I have 2 large dogs, bankruptcy on my credit, and no rental history. I can't imagine a short-term rental would even be something I could find or qualify for and I have less than zero desire to rent. I'd much rather buy something decent, fix it up, and spend time in the areas I want to explore. If I hate the house or area after 2 years, then I will sell and move.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Dec 12, 2019 20:57:41 GMT -5
The links don't work.
Can I get a pm?
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Tiny
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Post by Tiny on Dec 12, 2019 21:06:04 GMT -5
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Tiny
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Post by Tiny on Dec 12, 2019 21:14:01 GMT -5
hmmm... I'm thinking you will want to make water and sewer (and flood plain) near the top of your "consideration" list for on any house you are looking at. I'm not against flood plains if you do your homework and know what you are getting into and are willing to take the risk.
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Deleted
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Post by Deleted on Dec 12, 2019 21:24:19 GMT -5
Most of Hines/Burns is in the flood plain. I've looked at the maps and looked into the cost of flood insurance. The property you saw on Zillow is under contract and more than I want to spend. A lot of what shows as active on Zillow is under contract on the local listing realtors' sites. Realtor.com seems to be the most up to date when it comes to that, although it also occasionally shows old listings that are in escrow as well.
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