All Forum Posts by: Kristine Ann

Sounds like a headache.  How difficult is it to just get the permit?

Most of the houses on realtor and zillow are not available anymore. Most of them have offers and are under contract.

Let me rephrase: you're buying a home above market value by assuming a low interest rate mortgage? I like that you've taken over that lower interest rate mortgage and that you're comfortable with the numbers. Sounds like they are higher quality SFH's as well. Sounds awesome!

I would just caution you with getting too enthusiastic and overbuying and not having enough cash reserves per property. You need to think of your worst-case scenarios, like vacancies, rent decreasing, fines, fire/water damage, and getting sued.

I know nothing about the area, but that's a tiny square footage for a 3 bedroom. Have you seen the completed home in person?  Are you sure there isn't anything left undone?  

You could market it as a two-bedroom with an additional office/den. Two people working full-time making $10/hour should be able to afford it at $1100/month.  And if they are looking for a one bedroom or two bedroom, they will be pleasantly surprised at the extra room.  Marketing it as a three bedroom brings in a family with two kids or group of three roommates, and it's way too small for 3-4 people.

@Sarah Smith Are you allowed to tear it down as a historical site?  I've heard of restrictions for buildings on the historical register.  I agree with @Scott Mac that you should have an inspection done so you know exactly what your dealing with if you really want to rehab it instead of tearing down.  I also agree with the tarps on the roof and plastic stapled to the windows.  

From the pics, it looks like you'll have to have the building hiked up and the foundation repoured.  It also obviously needs a new roof and new drywall.  Probably needs completely new electrical box and wiring for safety.  The foundation, roof and electrical are all things you will want to hire a company to do.  As far as the interior projects, your family may or may not be able to do. Looks like interior frames of walls and are rotted out and need to be reframed.  There is quite a lot of wood rot on the exterior as well.  It's a project to restore, for sure.

As far as emergency housing, this obviously isn't going to work. If you are looking for temporary housing asap on this spot and it's a private lot, I'd get an estimate for water and sewer set up for one or two RV hookups. Sometimes you can get a small RV (used) for a fairly good price.  Alternatively, they can boondock (without hookups) and you can rent portapotties.  You'll probably need portapotties on the site anyway for construction workers.

If you aren't opposed to single or double-wides, that would be the next easiest considering foundations, sewer water, and permits are all possible .  If the lot is large enough and you can get the permits, you could create a small community for your family with a nice shared family area with a pergola and landscaping.

@Jim K. First of all, the definition of rich is fluid and depends on the person and who you are comparing them to.  Second, the idea that poor parents succeed at parenting and the rich fail due to the availability of money is hilarious. Since parenting is one imperfect human raising another imperfect little human, it isn't a pass/fail kind of thing anyway.

My kids have been told that there is no inheritance and that every asset has a debt attached it, which isn't far from reality. The kids (and their friends) are repeatedly told that many people who look rich are actually poor and vice versa.  The lessons from  "The Millionaire Next Door" are constant themes in our house. Ultimate respect is given to the school janitor, the fast food worker, and the residents of the mobile home park because they are probably better with their money than mom and dad.

My kids are given a lot of advantages, including nice vacations, a large house, and a good public school education. They are offered trade school or state college debt-free. They are reluctantly loaned an old family car as a teenager and young adult that we "happen to have extra". As young adults, aside from the car and a degree in their cap, they aren't given any lump of money. They work, pay rent, and have to budget their $1-over-minimum-wage job just like everyone else. We'll help each of them with a down payment when they are ready to buy a house as a single or married couple. A good start into adulthood with a debt-free degree, an old car and down payment on a small SFH...that is the cycle of generational wealth.

Even though they are given so much help starting out, there is never access to a large lump sum of money to make mistakes with. I don't know any parent in my circle who just gives their kid money to burn. Hopefully we live into old age and our kids will be well into into their 40' or 50's before they inherit anything.

So true.  I also wouldn't mess with a single mom's alimony, custody agreements, and general stability.  

You sound comfortable with house hacking.  I would go ahead and do another owner occupied property and don't listen to anyone's advice. Everyone knows their own finances and what strategies work best for their situation.  

You are probably making better real estate decisions with that 100k nest egg. You're also a great candidate for a normal mortgage and low interest rates.  I would put that extra 100k in CD's, bonds and an s & p index fund and continue to add to it.  Eventually you'll have 1 million and that amount invested very conservatively yields 3-5% and $2500-$4000 a month.  At some point you will be glad you have that cushion, whether it is to take advantage of an opportunity or avert a crisis.  Most people on here are way too overleveraged.

Absolutely not.

@Sam Gupta You don't need to go out of state!  Hop in your car and drive up three hours north to the Albany/Ballston Spa/Saratoga Area.  You can also look into Utica, Syracuse, Rochester and Buffalo, all within an 6-8 hour drive.  Look for small suburban areas or revitalized small towns with good schools.  Often people try to stay in a good school district and will rent a place in the district lines just for that reason.