Reply Hey Mom! Learn more about the Gerber Life Insurance Grow-Up Plan!
 
Thread Tools Display Modes
Old 02-20-2013, 08:58 AM   #11
Mags462's Avatar
Mags462
Registered Users
seller
seller
 
Join Date: Jun 2007
Location: Rollin' Hard in my Swagger Wagon!
Posts: 6,539
My Mood:
Re: Buying a fixer house with cash vs Buying move in ready with mortgage ??

We live in a home that is now a 3bd/2bth and super nice.... when we bought it, it was a hoarding bachelor's shamble. Originally it was 850 sq ft..... we completely gutted it (only 1 interior wall remained in the same location), built an addition on the back, and also built a 2 car garage.

We did that because it was the only way we could afford to buy a "nice" house - with sweat equity. We spent 8 months working on it without living in it - but moved in long before it was done. I will not say its easy, nor will i say its for everyone - but we now have 45% equity in a super nice home in a location we love.

At times it was BEYOND stressful. It's not for the faint of heart. But we were dedicated to it and survived. I love my home, i wouldn't have done it any differently. I think the biggest thing is how committed you/DH are to fixing it in a timely manner. Living in a construction zone SUCKS - we only really had to live in the construction zone for 5ish months.... we continued to rent a duplex for the first 9ish months until we couldn't afford the rent and the mortgage. But DH never let up - he worked insane hours and i painted, scrubbed, tiled, etc every extra minute i had.

If you cannot commit to putting in serious effort to get the home fixed up quickly (eg 18mo or less) just don't do it. You will get frustrated and stressed, and just don't do it. but if you can "live like no one else" it can be worth it.

So there is my

Advertisement

__________________
Officially in "mourning".... and
Mags462 is offline   Reply With Quote
Old 02-20-2013, 09:01 AM   #12
NotLad's Avatar
NotLad
Registered Users
seller
seller
 
Join Date: Jul 2011
Location: The UT
Posts: 2,436
My Mood:
Re: Buying a fixer house with cash vs Buying move in ready with mortgage ??

Where can you get more bang for your buck? Is the fixer in a nicer neighborhood than the mortgage? If yes, buy the fixer. You can change the house, you can't change the location.

Do you have the cash to fix up a house on top of maintaining it? What if you're in the middle of a 10k kitchen remodel and you find out the sewer pipe needs replacing? Will you have the $7k on hand to make the repair?
NotLad is offline   Reply With Quote
Old 02-20-2013, 09:05 AM   #13
Tris's Avatar
Tris
Registered Users
seller
seller
 
Join Date: Jan 2013
Posts: 3,535
My Mood:
Re: Buying a fixer house with cash vs Buying move in ready with mortgage ??

Where would you stay while you wait for the foreclosure? Foreclosures can take months to close, my friends just bought one and it took 8 months. Banks are slow.
Have you talked to a realtor or loan person? There are a few options for those with bad or no credit right now.
__________________
J- sahm to Z~12.07, A~4.09 and J~ 8.13
Tris is offline   Reply With Quote
Old 02-20-2013, 09:07 AM   #14
MandeeTheGreat's Avatar
MandeeTheGreat
Registered Users
seller
seller
 
Join Date: Apr 2011
Location: Central Illinois
Posts: 649
My Mood:
Re: Buying a fixer house with cash vs Buying move in ready with mortgage ??

Thank you all, you have great points. There is a lot to think about. As far as taking on projects, it is something we enjoy. I love DIY projects and the end pay off. My husband actually had his own remodel/handyman business at one time. He has experience doing most repairs (obviously we would hire out for plumbing/electrical etc)
__________________
Doula Mandee
wife to Chris mama to Ceaghan 8/15/09
ectopic angel
12/16/10 & Cesilee 12/29/11
Born Preemie @ 35 weeks, Check the Blog and shop ZULILY

MandeeTheGreat is offline   Reply With Quote
Old 02-20-2013, 09:11 AM   #15
MandeeTheGreat's Avatar
MandeeTheGreat
Registered Users
seller
seller
 
Join Date: Apr 2011
Location: Central Illinois
Posts: 649
My Mood:
Re: Buying a fixer house with cash vs Buying move in ready with mortgage ??

Quote:
Originally Posted by Tris View Post
Where would you stay while you wait for the foreclosure? Foreclosures can take months to close, my friends just bought one and it took 8 months. Banks are slow.
Have you talked to a realtor or loan person? There are a few options for those with bad or no credit right now.
I assume it would go a lot quicker when paying with cash. Also we could set up the closing date with the closing date of selling our mobile home. We would be selling it back to the mobile home park (they do financing and also rent out homes they own), so there is room for negotiating a move out date.
__________________
Doula Mandee
wife to Chris mama to Ceaghan 8/15/09
ectopic angel
12/16/10 & Cesilee 12/29/11
Born Preemie @ 35 weeks, Check the Blog and shop ZULILY

MandeeTheGreat is offline   Reply With Quote
Old 02-20-2013, 09:32 AM   #16
new_mommy78
Registered Users
seller
seller
 
Join Date: Nov 2007
Posts: 1,641
My Mood:
Re: Buying a fixer house with cash vs Buying move in ready with mortgage ??

Quote:
Originally Posted by MandeeTheGreat View Post
I assume it would go a lot quicker when paying with cash. Also we could set up the closing date with the closing date of selling our mobile home. We would be selling it back to the mobile home park (they do financing and also rent out homes they own), so there is room for negotiating a move out date.
Yes it will go MUCH faster with an all cash offer. Many times you can close just as soon as they get the cash! I would totally go for the DIY. DH and I did that for or first home and now it's a rental. Just make sure you are buying in a great neighborhood (since that is the only thing you can't change about your house)
__________________
Married to my best friend, and blessed to be a mama to 3 kiddos and expecting a new blessing in April
new_mommy78 is offline   Reply With Quote
Old 02-21-2013, 09:09 AM   #17
krispy79's Avatar
krispy79
Registered Users
seller
 
Join Date: Apr 2009
Location: Bangkok, Thailand
Posts: 1,912
My Mood:
We own a nice little cookie cutter house that looks all pretty on the surface, and we own a fixer upper/ foreclosure that we bought outright with cash.
I swear there is always something driving me insane or little fixes that have to be looked into on the new house, it gets super annoying... Like nail pops!
The fixer upper, well that is exactly what it is, we don't have such high expectations for it so we can tolerate and know what and how we want to fix it up (screws in dry wall, no more nail pops).
We didn't live in the fixer upper for a while, it was out of state, so it started as a project or summer place. We set aside the money each month as if it was a payment and we did all of the work ourselves. Hubby and i sided a 2500sq ft home by ourselves while I was 6 months pregnant with no previous experience in just 1 long weekend. We paid $1800.00 for all of the supplies and food for that weekend, the cheapest quote to have it done was over 10k. All of the siding was top quality and delivered to us and dropped in our yard. We bargain hunted and installed 2 new bathrooms for for 2k.
Anyway, I say it's well worth it if you stay focused and determined. You go one room at a time otherwise you end up with a bunch of half finished rooms and what feels like no end in sight. And do the kitchen last, yes last. That is going to suck the biggest chunk of change and you may never recover from it, plus by doing it last you have learned how to bargain hunt, made connections, and maybe have a little more money for the kitchen because you saved in so many other rooms.
__________________
Kristy~ISO: Sleep!

Is Someone Hurting you? You can talk to me 1.800.838.8238
krispy79 is offline   Reply With Quote
Old 02-21-2013, 12:03 PM   #18
jjordan
Registered Users
seller
 
Join Date: Jun 2006
Posts: 7,810
Re: Buying a fixer house with cash vs Buying move in ready with mortgage ??

It sounds like a fixer-upper house would be a good match for you. I would caution you to be SURE to have a home inspection done before the purchase though, so that if there is a big problem, you know about it going in. It's one thing to know you're going to be ripping out bathrooms and kitchens and stuff, but it's another thing to find out that you need to fix a foundation or something like that!
jjordan is offline   Reply With Quote
Old 02-21-2013, 12:26 PM   #19
ltlmrs
Registered Users
seller
 
Join Date: Mar 2010
Posts: 1,154
Re: Buying a fixer house with cash vs Buying move in ready with mortgage ??

Quote:
Originally Posted by erin_c_odonnell View Post
Depends on your personailty (and that of your dh). I would do the fixer cause the payed off part is just too awesome to pass up for me. Plus I like DIY and don't mind constant projects. But some people it would stress them out. I wouldn't do the multi-unit though unless you have a sizable amount towards repairs already on hand. Getting things up to code any ready to rent ALWAYS takes money even if its "move-in" ready on the sale. Everytime someone moves out/in you pretty much have to paint, change locks, fix holes, clean carpets, clean house, blahblahblah. It's a lot of money.
Agree 100%

Also make sure to get a good home inspection so that you have an estimate of what exactly needs to be done.

Quote:
Originally Posted by MandeeTheGreat View Post
I assume it would go a lot quicker when paying with cash. Also we could set up the closing date with the closing date of selling our mobile home. We would be selling it back to the mobile home park (they do financing and also rent out homes they own), so there is room for negotiating a move out date.
Not necessarily. We know someone who was buying a foreclosure with cash and it still took months, once the offer was accepted things moved quickly but it took several months for the offer to be accepted, their realtor said it was not atypical for a foreclosure buy even with cash. There's just all sorts of unforeseen factors like what sort of foreclosure it is (short sale/bank owns the original mortgage/bank bought at an auction) and how swamped the bank is.
__________________
Catholic housewife and mama to - Ladybug (4), - Itzy Bitzy (1), and
PPD? Read this.
ltlmrs is offline   Reply With Quote
Old 02-21-2013, 02:47 PM   #20
tokidokikashikoi's Avatar
tokidokikashikoi
Registered Users
seller
 
Join Date: Apr 2008
Location: Michigan
Posts: 518
Re: Buying a fixer house with cash vs Buying move in ready with mortgage ??

Quote:
Originally Posted by ltlmrs View Post
Not necessarily. We know someone who was buying a foreclosure with cash and it still took months, once the offer was accepted things moved quickly but it took several months for the offer to be accepted, their realtor said it was not atypical for a foreclosure buy even with cash. There's just all sorts of unforeseen factors like what sort of foreclosure it is (short sale/bank owns the original mortgage/bank bought at an auction) and how swamped the bank is.
THIS! I bought a house 7 months ago after 7 months of house shopping. I put an offer on a short sale that took 6 weeks just to find out that the bank wouldn't accept the asking price the realtor had picked, let alone my offer. The second was a foreclosure that took just as long to get rejected. The house was severely overpriced but they would accept no less than asking. And I found out later that the house had a mold problem. It's still empty now. This is even before we got into any financing issues! And the "deals" out there are often either in worse shape or are more expensive than they appear.
__________________
Mom to Ryann (07)
Check out my blog: Real Life Montessori
I make money on Swagbucks and InstantBucks
tokidokikashikoi is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Copyright 2005 - 2014 Escalate Media. All Rights Reserved.