Palum
what Suineg set it to
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Home buying thread
- Thread starter Pasteton
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FYI this is the only place to get them per FCRA authorization. The rest are subscription services masquerading as the above.
Palum
what Suineg set it to
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Also, I would seriously consider starting your house search soon-ish.
At 15K you are entering 8-10% range in what you want. If you are planning on adding 30-40K this next year that's roughly 20% range by 6-8 months. The ideal buying window is probably 3-4 months at a min, to find the best value if you are picky maybe 4-6 months. At that range you will get a feel for the market, see enough houses/condos to figure out what you really want and what's important and what you can live with. When 'it' shows up, you can be ready to pounce on it. So I would take a look at some open houses in areas you like and start getting a feel for neighborhoods by this summer. If your lease allows it and you penny pinch by August you will be ready and a savvy consumer OR if you decide you really want the 250-300K legit house you know what you need to do over the next year.
At 15K you are entering 8-10% range in what you want. If you are planning on adding 30-40K this next year that's roughly 20% range by 6-8 months. The ideal buying window is probably 3-4 months at a min, to find the best value if you are picky maybe 4-6 months. At that range you will get a feel for the market, see enough houses/condos to figure out what you really want and what's important and what you can live with. When 'it' shows up, you can be ready to pounce on it. So I would take a look at some open houses in areas you like and start getting a feel for neighborhoods by this summer. If your lease allows it and you penny pinch by August you will be ready and a savvy consumer OR if you decide you really want the 250-300K legit house you know what you need to do over the next year.
Noodleface
A Mod Real Quick
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After talking with some financial professionals, refinancing right now isn't a good idea for us. Instead I'm throwing additional money at the principal balance every month to get us closer to 20% equity. Thanks for the help bros
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Noodleface
A Mod Real Quick
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Lack of extra equity + probably lower than hopeful appraisal. In addition, I feared that when closing costs were thrown in I wouldn't break even for several years. I'd rather work off PMI first.
Can someone help me out with a question. Say you buy a house for 250,000. The house comes in appraised at 250,000. You want to put 100,000 of upgrades into it. Obviously you can't take a mortgage out for 350,000. What kind of loan do you take out on a "fixer upper" house? I've googled it and it seems like maybe different companies have different names for these.
Cad
scientia potentia est
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This is a really bad idea and unlikely to recoup your expenses. Thus the reason they won't give loans for this.
But if you did want to do it I believe it would be called a home improvement loan. But generally these just use the equity in the house.
I'm confused by your first sentence. Why is renovating a house on a premium property a bad idea? It isn't like the appraiser will appraise the house really high but the seller will offer it far lower. At least I wouldn't think ...
Cad
scientia potentia est
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I mean a $250k house with $100k in upgrades isn't going to sell for $350k, so it's a bad idea. You will lose money doing this. Much better idea to just buy the house you want in the first place. I don't know how else to phrase that.
Khane
Got something right about marriage
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Yea, throwing more than 1/3rd of the homes current value into renovations sounds like a bad investment. You're not talking about a 50k rehab here, you're already looking to spend $250k and then throw another $100k at it and you seem to be talking about it very nonchalantly.
Palum
what Suineg set it to
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Even if it's a 350K house, both mortgage brokers I talked to in depth and my realtor said a 203K streamline is OK in some rare cases but they couldn't recall an actual 203K fund. There's too many moving parts to hit the required deadlines and something always falls through by the time it needs to pass final inspection for the 203K.
Borzak
Bronze Baron of the Realm
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I guess it depends on the area. Normally I would say bad idea. But the last place I lived in BR the neighbor sank a ton of money into the house and put on an extra floor. The neighbor past him bought the hous for $250k and put who knows how much into it and sold it for $650k. The one across the road they bought the house for just under $300k, tore it down and built a new house on the lot. Going to wild ass guess none of it was financed.
But I agree most places aren't going to be like that. This was a lot of older people dying and leaving houses to kids and such in an area that was still in a lot of demand.
But I agree most places aren't going to be like that. This was a lot of older people dying and leaving houses to kids and such in an area that was still in a lot of demand.
AladainAF
Best Rabbit
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I agree completely. Additionally, when most people do fix-er-uppers they fuck it all up and make it really custom or tailored to their tastes or even worse do shit like buy stainless appliances and shit for a flipper property. You need to make that shit ultra generic and spending $100k on upgrades with a home worth $250k is an obscene amount of money.
I flipped a few houses in the past and hated it and don't do it anymore. But I generally could take a serious piece of shit and never spend more than 10% of what I bought the house for to fix it up to sellable condition with a nice profit. Unless I was renting it out, you just shop around for the cheapest, generic shit you can get. Even dishwashers and shit buy second hand.
The numbers were arbitrary I just didn't know what kind of loan to google. I only brought it up because there was a property (which I'm not offering on) that was beautiful for ~375k but realistically needed at least 30-50k in updating. But with the age of the homes on some of the premium properties around here I wouldn't be shocked if you put 100k into a 250k property and could easily flip out around again for at least what you put into it. Most of the neighborhoods I'm looking at have incredibly diverse pricing ranging from the 300's to the 1.5M area.
Noodleface
A Mod Real Quick
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The guy that originally bought our house purchased it for $112k, completely rehabbed the entire thing (not sure the cost) and sold it to use for $265k two years later - so it's not completely unrealistic.
Cad
scientia potentia est
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Can certainly be done but its risky and you need to know what you're doing to come in under budget and do the things that will actually increase value... which is why lenders typically won't just front homeowners $100k in excess of their $250k purchase price because they know they won't recoup that if they have to foreclose.
In my area there's lots of old houses (and lots of teardowns/rebuilds) and everyone knows you don't want to do more than the basics when rehabbing your property, you want to just do what YOU want and are willing to pay for; the next buyer may not like your upgrades and might not be willing to pay for it. Better to just discount the property and move it as is.
If you want to do things just to improve the property for your own taste, thats fine, but don't expect to get your money back on it.
My next home I plan on staying in for the long term. Most of the renovation would be for my own personal consumption. That isn't to say I'd do some out-there whacky shit like I've seen in some of theses homes but the objective wouldn't be pure equity.
There is a really nicely redone reno where I do feel they may have gone overboard and outpriced themselves. I'm interested in the home and property but their $/sqft is outrageous simply because they finished the home so well. Its like $75 more than the average $/sqft in the city and the city I'm looking at is already pretty high in that regard. The only homes that sell in the $200/sqft range are the million dollar homes with private docks, tennis courts and inground pools and all that.