What about my own home as an investment?

[Amy B.]

Hello everyone!

I have found great advice on this site!   Our focus was income and we, my husband and I now have 3 rentals. Thanks! Now my focus is on a home for us.

  Recently I found a foreclosed home that we really want. It needs a lot of updates, mostly cosmetic. I just found out that the appraiser has ruined the deal!!! Our traditional bank will not give us a mortgage and now I am scrambling to find financing. I would appreciate any feedback or opinions from the community here, you never let me down before!

Here is (was) the deal:

I found the worst house in the best neighborhood....

3 bd/ 2 full bath/2 car Gar/ Finished basement (which needs to be refinished) 

We have an accepted bid for 95k, the appraisal came in at 102k and in "Fair Shape". We had an approved 30yr mortgage for 3.75%. The house next door is listed for 139k without a Garage , but with a family room addition. I know it is a great area to invest and live. I firmly believe we can put about 10k into this house and our own sweat equity and sell in a year for 150k. Our plan is to live there for about 5 yrs. 

Should we mess around with different banks, look for hard money lender or walk?

So my question to you all is WWYD?

P.S. we put 1k Deposit paid $180 + 475 for appraisal and extension cost is 10$ per day starting tomorrow.

[Joe Villeneuve]

your own home isn't an investment in the same way a flip or rental is. The home you live in is a cost. When you add up all the money you put into it it will almost always be more than the final price you sell the house for. That's not investing.

having said that, this sounds like a great deal for a house to live in.