I'm contemplating buying a house in south Virginia. The house is between 120-130,000. I've spoken with the bank the total monthly costs with mortgage/insurance/town tax is $683, the closing costs are 5500, interest rate is 3.00% currently. Has a new roof, new floors, new kitchen, electricity was redone for most of the house to meet code. I'm thinking of going to see it in person this week and probably getting a house inspector to come see it with me to point out potential issues. I'm considering this because the house has a perfect setup for casting and is in the right area where I'll be working for the next two years. After that I'll likely move and work somewhere else but will probably keep the house or rent it out to students/residents. The house seems like a decent investment in terms of having easy access to medical residents/students to rent it to going forward. Rent in the area is difficult to find a house with adequate casting area and I really don't feel like having to wait several more years before I can live comfortably and do my hobbies while living in a small apartment and paying more than buying (rent 800-1200 in area). What do you think? Is this a silly idea? Am I overlooking things?
What is rent but someone else's mortgage payment? If you think you'll be there for a length of time it's probably a wise choice. If the price is reasonable you can sell it later if you find another place you want to be; can't do that as a renter. If you've not been a homeowner before, you will start to appreciate the work that goes into a place that as a renter largely goes unseen, but I think it's typically better to buy than rent. I presume you've had an independant inspection done by someone competent and not chosen by the seller or realtor? Read it carefully and examine what they report for yourself; ours missed a few things. Go into the attic, crawl around in the basement, explore the shitty nooks and crannies. You'll go there as the owner, so might as well get a good idea of what you're really getting into and know what they have done and what they haven't. Sometimes it's better if they left a problem undone rather than "fixing" it poorly. I tend to focus on foundation and roof and try to see it in the worst wettest weather. Take a page from Cato the Elder's de Agricultura (paraphrased), "Do not be in a hurry, go all around the farm many times and many days. The more you see of a farm the more it pleases you, that is the place to buy".
What year was the house built in? Age of the Air conditioning unit?? and make DAMN sure that sucker is using R410a refrigerant or take an immediate 7k off the asking price. You are in the ballpark for monthly mortgage/insurance/tax.... I'm guessing you are looking at a 30yr note. 3% is a great rate and I wouldn't not expect it to change much if at all. Get it fixed! And yes, I think right now is a great time to buy a home! (unless it's in an area where the bottom could completely fall out of it's shorts!) Due to some large corporation about tank, near a coal mine or nuke plant. You get the idea.
She said it has a "heat pump" but not the type that has miles of coils in the back yard. It looked like an AC unit to me from distant pictures? Unsure what it is apparently it does heat and cool, so it sounds like a southern word for AC? I'll try get an independent person to inspect. I don't get the feeling this lady would try squeeze $ out of the place. She is far too wealthy to care about a few thousand here or there and looking to retire and sell off a lot of her properties. But always best to be sure and get an impartial inspector. Only going to get one shot at seeing it before moving since its a 9 hr drive.
One of my customers bought the house she's currently living and hired a building inspector who gave the mid 1980's vintage house a clean bill of health structurally. When I came round I see her digging the garden bed round the front porch to expose badly rusted steel foundation posts that are more rust than steel...seems the building inspector missed that as the previous owner had built up the dirt round them. The block slopes downhill so the tropical rain collects in the front yard and runs under the house as the previous owner had filled the front concrete drain and pipe with dirt too . Is the house likely to have been used as a meth lab?, I hear that can be very expensive to fix, short of renovating the house, not sure how you could test for chemicals.
lol. The miles of coils is a geo-thermal unit, NOT A HEATPUMP... Geo thermal is SUPER EXPENSIVE and when done right, is brilliant. Now a heat pump is just a regular AC system that runs in reverse to provide the heat inside instead of outside as in the summer... I'm going out on a limb here and going to guess the house does not have natural gas. In that case, a heat pump would be better than just electric heat strips for your heat. Now, heat pump units DO have heat strips, but are typically for emergency use when the outdoor compressor won't start in winter. Now the real shitty part about heat pumps is they SUCK ASS when it's below 40 degrees outside. Natural gas or oil units are king when it comes to heat. Seeing it's Virginia, I guess it doesn't really get that cold there. Either way, heat pumps must work okay there or it wouldn't have one. More importantly, if that sucker is R22, politely tell them the unit is worthless as R22 was phased out this Jan 1st 2020 and when this unit needs anything serious, you are screwed and this will require a complete change out of the outdoor unit/compressor and indoor coil. That's why I say 7grand. The BS home warranty you will probably get for free will be the most USELESS piece of shit you will ever get to experience. They are a lesson in patience and prick pulling. These clowns are pro's at jerking you off with repeated call outs, idiot techs scratching their balls and nothing getting fixed. AHS is probably the worst out there. I had one for free first year and learned they are a joke in the 3rd month with an AC issue. So DO NOT expect these assholes to be there when you need them. Go in the door KNOWING what you have and the pitfalls>>> A few bucks set aside is helpful too when shit breaks. I recently turned down a complete AC change out system here. Everything had to go including the ducts. YUP, You guessed it! METH LAB! No thanks.
I'd didn't realize meth lab was that high on the "buyer beware" list. Jesus. Because I live in New York my taxes are certainly significantly higher than yours would be but I bought a house 5 years ago at a similar price range and slightly higher rate and my minimum payment is just over $1000. Don't forget about escrow payments. I made my purchase decision partly because the house was turn-key and then spent about 30 grand over the next 4 years on improvements like driveway, roof on the barn, concrete, new porch, etc., so a residential property can be something less than an asset. If you're going to live in it then it will probably be worth it. But don't count on it being an investment. It might turn out to appreciate in value but it might not. And renting it out might look good on paper but it certainly comes with plenty of issues and responsibilities. A "good" renter's cat can shred every molding in the house in a month, etc. The points Jason mentioned in 3 are some good food for thought not just in terms of resale value but also a renter's ability to pay, etc, etc. Independent inspection with you there is an absolute must. You won't probably be looking for mold, termites, etc. They will. And remember that every single person involved in this transaction is making money except you including your agent and your lawyer, so everyone else involved wants you to buy it. Other than an independent inspector you have no advocate, so yeah, you need your boots on the ground. Pete
What year was the house built in? Well and septic system or city water? Whats the comps in the area? What is its secondary heat source? So many questions...... these are but a few, but they are big ones... Do you have an address where one can look up the property?
I don't know about the meth house. What is the risk there? What chemical issues? I'll send the address via PM if anyone wants it (forwarded to you already David) From what I understand the house was owned by 7 siblings and they are selling it. It's in the middle of the town of wise Virginia
You're lucky to be in an area where a home like that is still affordable, in my area, something like that would be a minimum of $350k, much more if it's in a desirable neighbourhood. My heart bleeds for the young people just starting out in my area, for a lot of them, there's simply no way to afford a decent home.
That wasn't a meth house. Way too clean. But don't get too excited Rocco, this one needs a kitchen for starters. Looks like someone had plans for closing in part of that garage hence why the missing 2nd door. I must confess, I'm sick of the whole white molding and tan friggen walls. Always reminds me of a cheap flip. If HGTV and DIY channel would implode tomorrow, I wouldn't mind one bit. Garage looks nice and big. That's what zap wants it for anyways. Hows the bathrooms zap? From this century at least?
I was just commenting on the nature of the market there compared to here, here for $120k, you'd have trouble finding a decent sized empty lot and you'd have no chance at all of finding anything even close to move in ready. My house is a modest size, built in the early 70's on a one acre lot in what has now become a desirable neighbourhood, if I were to sell it in the current market, I'd expect to get considerably more than $350k and I expect the buyer would almost immediately tear it down and build a new oversized monstrosity, that's what's happened every time one the smaller, older homes in my neighbourhood came on to the market.
Yes but ugh looks like another person sniped the house 3 days ago (unless their mortgage falls through which I doubt). Before I got my finalized contract. Damnit.
Shit Rocco.. You ain't seen nothing man. Which million dollar dump would you like to buy in california these days? You can even have your choice of just plain hookers or full on crack whores! No extra charge for bullet holes and getting your car broke into just because it's a tuesday. https://www.instagram.com/milliondollarshithole/?hl=en
You have to move quickly these days. Seriously though; $700/month for a mortgage is a steal. You won't get the same autonomy in any apartment anywhere for that price. And, you can always hold onto it build equity, and sell it later. I would've made that deal in a heartbeat.
There are more out there. It's competitive though. My son put a bid on a house last month for 10k over asking price and got beat by someone else by another 15. Watch what houses in the region are selling for so you can get an idea what people are actually paying and get yourself pre approved with a lender so you're ready. Houses move fast these days around here anyway and if they don't there's probably a good reason. I feel bad for the young couple who just moved in down the street. They moved in next to the hillbillies. At about 8pm the hounds start up. At 530am the rooster gets going. Ducks and guinea fowl on the loose. Talk about buyer beware.
What would you do with all that room? You had a dozen (or more) fish tanks, a foundry, large workbench, Bed and kitchen in a 10' by 15' dorm room!!
I've noticed this trend for the last 10years. Home sellers are really not willing to entertain offers. They seem to not really care about selling and are willing to wait for a bidding war. Back in the day, you ALWAYS went in at least 10% under asking and EXPECT the seller to get the closing costs. Shit, today you cant even get sellers to leave the damn fridge here in texas.