moneymaven
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Joined: Dec 26, 2010 10:05:04 GMT -5
Posts: 1,864
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Post by moneymaven on Oct 11, 2015 19:44:27 GMT -5
I hope you get it GG! Keep us posted!
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HoneyBBQ
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Post by HoneyBBQ on Oct 12, 2015 10:55:51 GMT -5
I approve!!
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tskeeter
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Post by tskeeter on Oct 12, 2015 16:38:01 GMT -5
So our mortgage has been paid off for the last three years. It has been a great feeling to be 100% free of any debt, but now..... The lot adjacent to ours is for sale. It's been for sale as long as we've been here, but the asking price was far too high and we figured it would not sell. Recently the owner dropped the price nearly 50% (now $56,000) and people are looking. This is a dead end road, just our property and the adjacent lot. It has a few covenants, but we are concerned enough that we've decided to purchase it. But we don't have the cash and don't want to pull that much from the retirement accounts, so it looks like a cash out refi. But ugh! The thought of owing money to anyone is anathma to us. I'm mostly thinking out loud here and wanted to bounce it off you guys. Mortgage money is still at historical lows. You can get mortgages, even 30 year mortgages, for less than the gains you can get on most investment accounts. Borrow the money and buy the lot! (The Tskeeters refinanced their house three years ago for 30 years at 3%. I'm feeling real good about our rate, even considering current rates. When rates go up a bit, I'm going to feel like a real estate investing genius!)
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billisonboard
Community Leader
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Post by billisonboard on Oct 12, 2015 17:10:59 GMT -5
How about this: Buy it and you put it on the market. You control who does or doesn't buy it. If the right people show up, you become debt free again. If no one you wish to have as a neighbor makes an offer, you have space.
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tskeeter
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Joined: Mar 20, 2011 19:37:45 GMT -5
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Post by tskeeter on Oct 12, 2015 19:18:33 GMT -5
How about this: Buy it and you put it on the market. You control who does or doesn't buy it. If the right people show up, you become debt free again. If no one you wish to have as a neighbor makes an offer, you have space. The down side to this approach is that once you sell the property, you can't control who it gets sold to next. Unless you retain approval of any buyer or tenant for the remainder of your life. And that might make the lot hard to sell.
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Ombud
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Joined: Jan 14, 2013 23:21:04 GMT -5
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Refinance
Oct 12, 2015 21:28:44 GMT -5
via mobile
Post by Ombud on Oct 12, 2015 21:28:44 GMT -5
She's already stated she can afford it so I think she should just improve her lifestyle and Estate at the same time Oh yes, our cash flow would easily cover the payments.... it is also too short to risk nasty neighbors
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billisonboard
Community Leader
Joined: Dec 20, 2010 22:45:44 GMT -5
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Post by billisonboard on Oct 12, 2015 23:39:58 GMT -5
How about this: Buy it and you put it on the market. You control who does or doesn't buy it. If the right people show up, you become debt free again. If no one you wish to have as a neighbor makes an offer, you have space. The down side to this approach is that once you sell the property, you can't control who it gets sold to next. Unless you retain approval of any buyer or tenant for the remainder of your life. And that might make the lot hard to sell. True, but when considering that first buyer: And you will minimize risk of them selling to jerks.
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Gardening Grandma
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Post by Gardening Grandma on Oct 24, 2015 10:31:16 GMT -5
Update. We made an offer of $50K for the lot. They had just lowered the asking price from $56K to $52K. They accepted.
Our refi application for a cash our refi was approved. The int rate is 3.625.
We should close on the refi Nov 28 and the lot Dec 4. Thanks for all the responses. We feel good about it. Our plan is simply to hold it. I'm pretty confident we would not lose money on it (1.7 acres with water and septic already in)
If we ever decide to sell this house, we'd include the lot.
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Bonny
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Location: No Place Like Home!
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Post by Bonny on Oct 24, 2015 11:02:30 GMT -5
Congrats GG!
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billisonboard
Community Leader
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Post by billisonboard on Oct 24, 2015 11:07:44 GMT -5
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haapai
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Post by haapai on Oct 25, 2015 6:34:57 GMT -5
GG, Good move!
Cawaiu, how long ago was the land seized? I hate to tell you this but there are quite a few outfits that keep an eye out for tax seizures of vacant town lots and gobble them up quickly. Oftentimes, they don't do a whole lot of research on the land in question but price it outrageously and are prepared to wait for decades to get it.
One of these outfits grabbed an unbuildable lot (no road access) in our subdivision years ago. Every so often, one of the neighbors who fears that the untended land will become a dumping ground, goes down the city hall and does a ton of research into who holds it. The price never changes from the value that the city assigns all lots and it's insane. The taxes and lawn-mowing fines that the owners have to pay are tiny compared to the profit that the current owners believe that they are entitled to, so this could go on for a couple more decades.
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