All Forum Posts by: Michael Orozco

Cody, yes eventually it will be my primary residence. I am scared to death of having two mortgages at the same time.

However, since the house is not livable, and the initial loan is not even considered a home loan. It is considered a land sale.

Because their is already a house structure on the property, I have the opportunity to try and take advantage of that, and build off of that. The structure has good bones as they say. I had a general construction friend of mine come by and take a look at it, and he says the structure is sound. It just needs to be built up to be livable. I have around $44,000 dollars that I can put towards the house. This is the reason I thought about building and addition, or Garage\apartment on the property first, next to the house. I was hoping to build that property, move to it, sell my home after that part is built, and then contract out people to finish up the rest of the structure and incorporate it into the addition.

A few things.

1. I will have an ongoing land loan.

2. with additional cash build out the addition or as you suggested camper on site. Once complete - Move into there.

3. Sell my property. With the sale of my property use whatever available assets from the home sale to finish up the rest of my home.

The question is can I do the above procedure? And if so. How.

Lynette, I thought about doing the construction loan. And that would be great to get the house fixed up like we want.

But again, I am terrified of having two mortgage payments going on for so long. That is a lot of money to pay. I would basically be doubling the amount of money that I pay right now for my mortgate. Also, on top of that I have to get a general contractor, and that is more added expense. I don't like the HELOC idea, but with everything going on as it is, If I lost my job (which I don't plan on, but it would be very hard to recover financially and I would not want to lose my home.

Hey all,

I have been looking for a nice lake front property for years, and I finally found it. However, it is unusual.

The lot is beautiful .75 acres waterfront that has a nice creek that runs down the side. 

There used to be a house on the lot, but a previous owner gutted the house, and apparently either didn't have the know how, or the money to complete the project. So he is selling the property as is land. The price of the property is worth just the land price.

However, the house structure that sits on it, is in very decent shape. It has "Good Bones".

I just happened on the property and don't want to let it go, but I would like to save on it as much as possible. 

It is smaller and I was planning on building an addition to it.

My biggest fear right now is to buy this lot is having two mortgage payments at the same time, because it would take a while to build the house on it.

I have around $45K cash that I can use up front. A friend of mine told me, he thinks the easiest solution for me would be to buy the property just as a land loan. with the $45K, build an addition or Garage/Apartment next to the old structure. Once the addition  is complete, with water, electricity, and sewer, then sell my house, and use the money that I get from the sale to finish up the house? While I would have a two mortgages, it would only be for a shorter time period. 

Here is where I am confused. 

What options do I have? 

HELOC, Land Loan.

Also, can you have multiple loans? 

I was hoping to have the land loan and the HELOC loan seperate.

My thought was that once I have the Addition built and self sustainable, that I could sell my home, pay off the HELOC loan, and just have the mortgage on the property. Then gradually, I can do the reconstruction of the house when I have time. Plus I will have money from the sale of my house left over to do more work.