Mountain home for a 30 y.o. and as a primary residence?

[Roy Puli]

Hey,

I've been lurking around Redfin for a while now and came across a 2Bed/1Bath in Boulder creek priced at $700,000. In terms of finances, I can make the 20% down. Going through the documents, I see that the house does not have a water or gas pipeline. It relies on a well, and a 500lb propane tank. Since Im not too familiar with mountain homes and the pros/cons that come with that, Im hoping the lovely community here could help me with that. 

Its along the San Lorenzo river. I don't see any major repairs needed(from what I've seen).

Home facts/ questions : 

1. We are always in a drought. What happens when the wells dry up? is that even possible?

2. There was a flood back in 2017 where Felton was flooded. Insurance is a must. Can I expect insurance to cover the damages completely?

3. I see in insurance claims, during the CZU fire, food and hotel stay was claimed. There was no damage to the property. If a fire occurs and destroys the home completely, what happens to my loan, and the land? I don't think itll be livable for a long time to come. 

4. How do peopel refill these 500lb propane tanks? 

5. I earlier wanted to purchase a remote rental property to begin with. But this home has my heart(for now). Maybe after a year I could rent it out through AirBnB. Though I'm not sure if that can be done on my current visa situation. 

6. What interest rates can i expect currently with the feds raising interests? My credit score is around 806 with an outstanding vehicle loan of $5,000. 

7. I still have a day job at a tech company which is about 45 mins away. What do people think of the practicality? Everyone says that mountain home should be a secondary property, but living away from the city has always been a dream of mine and being an introvert, I recharge in solitude. 

8. I wonder what the internet connectivity looks like here. 

What other expenses/issues can people think of that usually come with these mountain homes? 

Sorry for the long post. Appreciate all the love and support!

Thanks!

[Jay S.]

Good questions Roy. I've some experience in dealing with these properties. Here's my 2 cents:

1. Yes, off course its possible well can dry up. I have an investment which runs on well and I check every year the water level in it. So far no issues but yes it can happen if drought comes to California and no rains for many years.

 2. Depends on the insurance you get IMO

3. Hard to give details here...

4. Some companies like Amerigas have automatic refill of propane - you just set it automatic refill and once they notice its low,  they come and fill it up 

5. Are you on H1-B Visa or OPT? DM me and can guide you through this in terms of Lending 

6. Depends on so many other factors - hard to give you a rate when we don't know your LTV, DTI, down payment, appraisal value, loan term etc.

7. Do what you gotta do man, don't think about everyone!  

8. Few internet companies provide service in those areas 

DM me if you have any questions or need help in Lending. Good Luck out there.