Do you think we're crazy?

gb

Message edited 10/10/2005 5:25:25 PM.

Re: Do you think we're crazy?

Kathy - is keeping your house and renting out the part you live in now an option??

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Message edited 1/30/2009 1:30:49 PM.

Re: Do you think we're crazy?

I would think with the escrow you have built into your house, it would be a no brainer.

No one says you have to have everything done tomorrow on the "new" house and since you know what it invovles to renovate a place, you will be able to make smart decisions on fixing up the place. The upgrades on your new home will definitely reflect on the selling price.

I say go for it!!

Re: Do you think we're crazy?

Oh Kathy! You are the best neighbor!

BUT...honestly, like others have said, it seems a no brainer. I mean, a lrger home, in E Npt, and I know you guys will make it gorgeous. Plus, our street is kind of busy - to live on a dead end would be heaven.

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I wouldn't think twice - I say go for it! I'm in a similar situation, where we've re-done every piece of wood and wire in our house (took us several years and a lot of sweat) - - - - and if I had that opportunity - I'd be on it like white on rice.

Big question is - do you NEED the rental income? If no - and you can swing the mortgage - go for it!

Let us know what you decide! Good luck!

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Definitely go for it! I don't think you really need to think twice about it. You can slowly renovate the house one room at a time. After everything is said and done, the value of your home will show for it and you would've made a nice a profit. Good luck!

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That's similar to what we are doing but we are selling our first house outright. We have a major fixer-upper... original 1971.

Be mindful of one thing... houses built during that time have aluminum wiring which as it gets older can arc and set off fires in the walls. We had two options... pigtail all of the switches/outlets (approx 100) for about $4000 or rewire the entire house for about $10,000... of course this doesn't include any additional electrical we weould need done like outside lights, etc. . We also need a new sub-box and our conduit is rusted out. We are looking at a repair bill of $5000 alone to pigtail and repair the conduit and sub-box. We've negotiated with the homeowner and they will give us $2500 back at closing, we knew they would not agree to the complete rewiring.

I would get an engineer's report asap before I went any further. We knew the house we are purchasing needed all new kitchen (vaulted ceiling and skylights)/2.5 baths, finished basement, CAC, floors redone, crack in basement (not structural) sealed, dining room ceiling re-sheetrocked, caps put on chimneys and chimneys swept, fence repaired, driveway redone (it's beyond skimcoating), landscaping cut back... we're looking at a minimum $150,000 redo and that's cost for the materials because we have a connection. Of course some of this we can do ourselves and some doesn't have to be done right away. We also have to abandon the oil tank (it's leaking) and get a new one and move it outside. We figured we'd have to do that. Today, I got the Termite inspection report and there is damage in the basement and that will cost $600. to repair so we just informed the owner about that.

My advice is get an engineer in there. There is a lot of cosmetic work that of course you can see but it's what you can't see about a house that is what causes most people to walk away. We almost considered walking away from our house but I priced comps in the area and when you take the price we bid for the house and add the cost of repairs it is still coming out less than if we bought a house in the same neighborhood but better condition.

Also, when you buy a bigger house that needs lots of work you are financing less money than if you were to buy new construction or a house in better shape. When you fix up a house you get instant equity and if you can do those jobs, ideally, with cash or money you have saved or equity from another sale it's even cheaper and you are getting EXACTLY what you want. Less to finance + sweat equity + cheaper materials + getting exactly what you want= A great financial deal.

You've also said that your DH is handy. I think if the engineer's report doesn't uncover any MAJOR, scarey and ridiculously expensive safety or structural projects than it sounds like it would be a great investment.
I know that we wouldn't be able to afford a colonial in East Northport if we weren't doing what we are doing. The house we are buying if it was new construction would be about $1,000,000. and taxes of probably $14,000 or above and it would be on a busy road because they are the only plots left.

Just keep in mind that you can't 100% depend upon rental money to cover expenses. What happens if you can't get a tenant in that you like? Can you take care of property #1 while fixing up property #2? Being a landlord is hard, especially an absentee one, are you and DH up for it?

Good luck and let us know.

Message edited 8/17/2005 2:08:13 PM.

Re: Do you think we're crazy?

vg

Message edited 10/10/2005 5:26:10 PM.

Re: Do you think we're crazy?

Some more...check out the cool retro 60's basement!!

Message edited 10/10/2005 5:26:32 PM.

Re: Do you think we're crazy?

jju

Message edited 10/10/2005 5:25:49 PM.

Re: Do you think we're crazy?

I agree with everyone. It would take time, but do little by little.
Can you afford it without having a renter?
I grew up in E. Northport in a Cul-de-sac, and it was great.

Re: Do you think we're crazy?

vso much nicer

Message edited 10/10/2005 5:27:22 PM.

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Message edited 10/10/2005 5:27:31 PM.

Re: Do you think we're crazy?

It is very nice. I will be in ENPT tomorrow

Re: Do you think we're crazy?

Posted by Diane

It is very nice. I will be in ENPT tomorrow

Re: Do you think we're crazy?

Posted by kelleherkm

Posted by Diane

It is very nice. I will be in ENPT tomorrow

Wanna buy a house? LOL

Re: Do you think we're crazy?

OMG Kathy I am PIMP over the basement pics! I have such fun childhood memories of skidding around my friend's basement that looked so much like that one - I love it!

Just like you guys made your current house gorgeous you can make this one beautiful too!

Re: Do you think we're crazy?

Posted by MsG

OMG Kathy I am PIMP over the basement pics! I have such fun childhood memories of skidding around my friend's basement that looked so much like that one - I love it!

Just like you guys made your current house gorgeous you can make this one beautiful too!

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Oh wait I forgot the BEST picture...check out the bathroom - WITH THE BACK DOOR!!!!!!!!!

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The backdoor AND the issue of Time Magazine conveniently outside!

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the patterns are blinding! I still stand by my recommendation - go for it! If you can't see yourself in your current house "forever" than make the jump - I'm sure you'll find it to be a good choice!

Financially it sounds like a no-brainer

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Wow I love the outside pic of the house you live in now!!

But I agree with everyone else. For a dead end block and a bigger house - and with such a great deal I would do it in a HEARTBEAT!

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Kath - You have a beautiful house. However, I am sure you put a lot of work to make it that way. I think you can make your aunt's house just as beautiful!! Yes miracles can happen, lol!!

I have to say, reminds me of my basement growing up, except without the initial in the floor!! I say get some good dark sunglasses until you can do the work you want to do....room by room...and jump on it!! I'd love to live on a dead end!!