Sounds like your house is a wreck. Estimates almost always go over. If it looks bad now it may be a nightmare later. If you could do much of the work yourself maybe it would work but contractors add up quick. Get your Realtor out there and see what's up with selling it now. Don't chase bad money with good money.
HELOC question
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Originally Posted By: hatt
Sounds like your house is a wreck. Estimates almost always go over. If it looks bad now it may be a nightmare later. If you could do much of the work yourself maybe it would work but contractors add up quick. Get your Realtor out there and see what's up with selling it now. Don't chase bad money with good money.
Had her out once, got my CMA. So she knows what we have.
Upon looking at numbers again, I think I could sell for less than CMA. I forgot how ahead I was, and what a 10% down mortgage would do. Just checked on my 401k loan ability, got the details on that. Even with a low selling price I should be able to pay off my 401k loan and then have a mortgage that I can live with.
Sounds like your house is a wreck. Estimates almost always go over. If it looks bad now it may be a nightmare later. If you could do much of the work yourself maybe it would work but contractors add up quick. Get your Realtor out there and see what's up with selling it now. Don't chase bad money with good money.
Had her out once, got my CMA. So she knows what we have.
Upon looking at numbers again, I think I could sell for less than CMA. I forgot how ahead I was, and what a 10% down mortgage would do. Just checked on my 401k loan ability, got the details on that. Even with a low selling price I should be able to pay off my 401k loan and then have a mortgage that I can live with.
Supton, it's my mistake in criticizing the 401K alternative. I thought you were talking about a short term withdrawal, not an actual loan against your balance through your plan.
Nick1994
$100 site donor 2024
Doesn't sound like the repairs will pay for them self.
I think I'd throw it up for sale for a really good deal and see if it sells, who knows, maybe someone will scoop it up.
What's the whole property worth? If we use round numbers and it's worth $70k as is, will $30k in repairs make it worth $100k? If not, no way Jose.
I think I'd throw it up for sale for a really good deal and see if it sells, who knows, maybe someone will scoop it up.
What's the whole property worth? If we use round numbers and it's worth $70k as is, will $30k in repairs make it worth $100k? If not, no way Jose.
Originally Posted By: supton
How did he get $80k? Borrow from wife's 401k also? Limit is 50% or $50k, whichever is lesser.
Which I can do, that would get me 20% down, and some portion of the closing cost (rest out of savings). Then I have two mortgages until this place sells. How long would that take? Right now, the CMA indicates I would not get my $50k 401k loan back. Fine, sometimes you have to take a loss. I do like this option, as I could buy and move in short order.
The real gotcha is making my house sell. Sometimes you have put money into something to make it go away.
You're correct.
He got $50K from 401K, a $7K tax credit from Obozo and the rest from in-laws. It was a total of $80K.
Sounds like I'd avoid investing another penny into your current home.
I'm curious to see a photo of the issue with the walls.
How did he get $80k? Borrow from wife's 401k also? Limit is 50% or $50k, whichever is lesser.
Which I can do, that would get me 20% down, and some portion of the closing cost (rest out of savings). Then I have two mortgages until this place sells. How long would that take? Right now, the CMA indicates I would not get my $50k 401k loan back. Fine, sometimes you have to take a loss. I do like this option, as I could buy and move in short order.
The real gotcha is making my house sell. Sometimes you have put money into something to make it go away.
You're correct.
He got $50K from 401K, a $7K tax credit from Obozo and the rest from in-laws. It was a total of $80K.
Sounds like I'd avoid investing another penny into your current home.
I'm curious to see a photo of the issue with the walls.
Too dark to photo now. But the header has kicked out at least an inch in the center, and ridge sagged. With mucho sheetrock cracking and movement. And water damage from the ice damming. Have nail pops where I think it's ice damming in the shingles. Contractor thought the water leak in one wall might actually be from the chimney.
Value is always in the eye of the holder (payer). Town assessment was $130k for land and $30k for the house. I paid $162.5k some thirteen years ago. Granted, town appraisal usually is lower than selling price, at least in a hot market. Good well, septic, road frontage, near a lake; for the right buyer...
Signed paperwork with a realtor today, might be up by end of week.
Value is always in the eye of the holder (payer). Town assessment was $130k for land and $30k for the house. I paid $162.5k some thirteen years ago. Granted, town appraisal usually is lower than selling price, at least in a hot market. Good well, septic, road frontage, near a lake; for the right buyer...
Signed paperwork with a realtor today, might be up by end of week.
Originally Posted By: supton
I know I should go to bogleheads but I know you guys better.
At the beginning of the summer we took a look at a property that we'd like to get. My only debt is mortgage, have decent savings but not enough to buy a house. Wife wants to figure out how to pull this off, and I suspect the right answer "shouldn't be done" but what the heck--is it doable?
Just got the pre-estimate on repairs to my house. $10k might fix the wall. $20k "just in case" for a conservative estimate. He won't know until demo, and to do demo I need to move out--granted, he thinks it's only 2 or 3 weeks to do the job. That said, I also have ice damming, and one possible fix involves ripping off the roof to redo the underlayment--it wasn't done right 10 years ago, and it's possible that my wall issue might be fixable with lots of plywood to make the roof resist wall movement. After pulling the house square. So add another $10k for the roof. That kind of repair is beyond my emergency savings as you can guess. [Funny how I'm contemplating spending $30k on a house that is valued at... $30k.]
We absolutely do not want to stay in this house. Bulldozing and building has been contemplated to fix space issues, but we're talking all new foundation and up. We'd rather do an as-is sale but I don't think it would sell.
So: I'm thinking, 401k loan to secure new house. Once moved, secure a HELOC on my first house. Commence repairs. Sell house and pay off 401k & HELOC. Question: my current house has of course been my primary residence, if only because it's my only residence. Buying a second house to be my primary residence... what does that do to my first mortgage, and does it impact my ability to secure a HELOC on it?
First and foremost ice dams occur because you have air leaks in your ceiling. Can lights, light fixtures, registers are all potential culprits. You can chase down those air leaks (probably cheaper). No underlayment is going to fix ice damming.
With a home valued at $30k I suspect much of that is the lot itself so it might be better to consider demo ($10k?) and rebuild brand new on the same lot OR just sell AS-Is. I don't know your local market but I would think an investor would probably buy for $30k with the intention of demo/rebuild.
I know I should go to bogleheads but I know you guys better.
At the beginning of the summer we took a look at a property that we'd like to get. My only debt is mortgage, have decent savings but not enough to buy a house. Wife wants to figure out how to pull this off, and I suspect the right answer "shouldn't be done" but what the heck--is it doable?
Just got the pre-estimate on repairs to my house. $10k might fix the wall. $20k "just in case" for a conservative estimate. He won't know until demo, and to do demo I need to move out--granted, he thinks it's only 2 or 3 weeks to do the job. That said, I also have ice damming, and one possible fix involves ripping off the roof to redo the underlayment--it wasn't done right 10 years ago, and it's possible that my wall issue might be fixable with lots of plywood to make the roof resist wall movement. After pulling the house square. So add another $10k for the roof. That kind of repair is beyond my emergency savings as you can guess. [Funny how I'm contemplating spending $30k on a house that is valued at... $30k.]
We absolutely do not want to stay in this house. Bulldozing and building has been contemplated to fix space issues, but we're talking all new foundation and up. We'd rather do an as-is sale but I don't think it would sell.
So: I'm thinking, 401k loan to secure new house. Once moved, secure a HELOC on my first house. Commence repairs. Sell house and pay off 401k & HELOC. Question: my current house has of course been my primary residence, if only because it's my only residence. Buying a second house to be my primary residence... what does that do to my first mortgage, and does it impact my ability to secure a HELOC on it?
First and foremost ice dams occur because you have air leaks in your ceiling. Can lights, light fixtures, registers are all potential culprits. You can chase down those air leaks (probably cheaper). No underlayment is going to fix ice damming.
With a home valued at $30k I suspect much of that is the lot itself so it might be better to consider demo ($10k?) and rebuild brand new on the same lot OR just sell AS-Is. I don't know your local market but I would think an investor would probably buy for $30k with the intention of demo/rebuild.
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Originally Posted By: supton
..... At 700 square feet we outgrew it years ago. We bought it as a starter home 13 years ago, and then weathered the financial crunch. Technically we are way ahead on the equity front--had the wall not moved. Also all the value is in the land, which is good/bad. .....
Sounds like a rent house, and you already own it. Why unload it on the cheap as a problem property when you can rent it out as - is, collect rent, take the depreciation, use it as collateral, etc.?
The place has worked for you and your family for thirteen years providing shelter, why cut it loose when it can keep working for you? Renters aren't going to care about the wall thing - they're renting and will move on after a while, and you just get another renter.
The best play is to wring everything out of it you can. The land will always be there. It's called real property for a reason.
..... At 700 square feet we outgrew it years ago. We bought it as a starter home 13 years ago, and then weathered the financial crunch. Technically we are way ahead on the equity front--had the wall not moved. Also all the value is in the land, which is good/bad. .....
Sounds like a rent house, and you already own it. Why unload it on the cheap as a problem property when you can rent it out as - is, collect rent, take the depreciation, use it as collateral, etc.?
The place has worked for you and your family for thirteen years providing shelter, why cut it loose when it can keep working for you? Renters aren't going to care about the wall thing - they're renting and will move on after a while, and you just get another renter.
The best play is to wring everything out of it you can. The land will always be there. It's called real property for a reason.
Originally Posted By: BMWTurboDzl
First and foremost ice dams occur because you have air leaks in your ceiling. Can lights, light fixtures, registers are all potential culprits. You can chase down those air leaks (probably cheaper). No underlayment is going to fix ice damming.
Nothing in that area. Lights etc. Air all around getting into that wall. My guess is, the little sofit vents are too small, and not enough air is going through. Also, there is a hip at the top of the roof, and my guess is that at least one if not two rafter cavities does not properly vent into the ridge vent.
By now it's a moot point. The snow and ice shield has been compromised. Also I'm told that because it went over planking, the warranty on the shingles is null and void.
One ice dam is on the vent pipe; the pipe is inches from the exterior wall. No way to fix that ice dam: the wall heats up from the sun and it will always eventually lift the seal on around the vent pipe. At least I can easily rake the snow from it.
Quote:
With a home valued at $30k I suspect much of that is the lot itself so it might be better to consider demo ($10k?) and rebuild brand new on the same lot OR just sell AS-Is. I don't know your local market but I would think an investor would probably buy for $30k with the intention of demo/rebuild.
Lot value is $130k, house (without issues) was $30k. We seriously considered knocking down and redoing, but we would need a new foundation too. At the time our mortgage was $70k and all said and done, it was like a $270k mortgage to be expected. We were worried about making 20% ownership at that point, as we did not know if the bank would be kind on appraisal. To do building you kinda have to own the land.
First and foremost ice dams occur because you have air leaks in your ceiling. Can lights, light fixtures, registers are all potential culprits. You can chase down those air leaks (probably cheaper). No underlayment is going to fix ice damming.
Nothing in that area. Lights etc. Air all around getting into that wall. My guess is, the little sofit vents are too small, and not enough air is going through. Also, there is a hip at the top of the roof, and my guess is that at least one if not two rafter cavities does not properly vent into the ridge vent.
By now it's a moot point. The snow and ice shield has been compromised. Also I'm told that because it went over planking, the warranty on the shingles is null and void.
One ice dam is on the vent pipe; the pipe is inches from the exterior wall. No way to fix that ice dam: the wall heats up from the sun and it will always eventually lift the seal on around the vent pipe. At least I can easily rake the snow from it.
Quote:
With a home valued at $30k I suspect much of that is the lot itself so it might be better to consider demo ($10k?) and rebuild brand new on the same lot OR just sell AS-Is. I don't know your local market but I would think an investor would probably buy for $30k with the intention of demo/rebuild.
Lot value is $130k, house (without issues) was $30k. We seriously considered knocking down and redoing, but we would need a new foundation too. At the time our mortgage was $70k and all said and done, it was like a $270k mortgage to be expected. We were worried about making 20% ownership at that point, as we did not know if the bank would be kind on appraisal. To do building you kinda have to own the land.
Originally Posted By: Win
Originally Posted By: supton
..... At 700 square feet we outgrew it years ago. We bought it as a starter home 13 years ago, and then weathered the financial crunch. Technically we are way ahead on the equity front--had the wall not moved. Also all the value is in the land, which is good/bad. .....
Sounds like a rent house, and you already own it. Why unload it on the cheap as a problem property when you can rent it out as - is, collect rent, take the depreciation, use it as collateral, etc.?
The place has worked for you and your family for thirteen years providing shelter, why cut it loose when it can keep working for you? Renters aren't going to care about the wall thing - they're renting and will move on after a while, and you just get another renter.
The best play is to wring everything out of it you can. The land will always be there. It's called real property for a reason.
I don't own (yet).
Renting, I have thought about, but have been ruling it out. Seems rentals go for around a buck per square foot last time I looked. At 700 square feet I'd be under a grand that I could charge--sure, 5+ car parking, nice yard, low crime area, reasonable basement, easy walk to a somewhat private beach--but still. $1k won't pay for my $1,300 mortgage (that's payment+taxes).
Now, maybe if I refinanced into a 30 year I could do it. Quick check says $323/month. Taxes are $358/month. That's $681, although I have no idea what extra costs I'd run into. That might work as a business plan, if selling falls through. Didn't think about refinancing... Too late at the moment, but certainly an option.
Originally Posted By: supton
..... At 700 square feet we outgrew it years ago. We bought it as a starter home 13 years ago, and then weathered the financial crunch. Technically we are way ahead on the equity front--had the wall not moved. Also all the value is in the land, which is good/bad. .....
Sounds like a rent house, and you already own it. Why unload it on the cheap as a problem property when you can rent it out as - is, collect rent, take the depreciation, use it as collateral, etc.?
The place has worked for you and your family for thirteen years providing shelter, why cut it loose when it can keep working for you? Renters aren't going to care about the wall thing - they're renting and will move on after a while, and you just get another renter.
The best play is to wring everything out of it you can. The land will always be there. It's called real property for a reason.
I don't own (yet).
Renting, I have thought about, but have been ruling it out. Seems rentals go for around a buck per square foot last time I looked. At 700 square feet I'd be under a grand that I could charge--sure, 5+ car parking, nice yard, low crime area, reasonable basement, easy walk to a somewhat private beach--but still. $1k won't pay for my $1,300 mortgage (that's payment+taxes).
Now, maybe if I refinanced into a 30 year I could do it. Quick check says $323/month. Taxes are $358/month. That's $681, although I have no idea what extra costs I'd run into. That might work as a business plan, if selling falls through. Didn't think about refinancing... Too late at the moment, but certainly an option.
Maybe we can get those carpenters from WGBH to come do a show and fix it for free
I need that solution too.
Same boat different Town. I'm near Brentwood.
Still stick built are easy fixes.
I wish I had stick built rather than log cabin
Good luck
I need that solution too.
Same boat different Town. I'm near Brentwood.
Still stick built are easy fixes.
I wish I had stick built rather than log cabin
Good luck
Would a buyer be interested in property as a lot? Would that cover your mortgage? Harder to sell as property more difficult to finance.
Plywood gussets screwed between the rafters and ceiling joists (collar ties) after the ridge is jacked up. All sorts of pulling, jacking gear blocking and shoring involved. Interior walls will need to be opened up. If you like the plot, you could demo the house and start fresh. That is what I should have done. Instead, I learned how to replace bearing walls rotten joists, etc.
Originally Posted By: madRiver
Would a buyer be interested in property as a lot? Would that cover your mortgage? Harder to sell as property more difficult to finance.
Harder to sell, I know. Cash buyer most likely.
Originally Posted By: andyd
Plywood gussets screwed between the rafters and ceiling joists (collar ties) after the ridge is jacked up. All sorts of pulling, jacking gear blocking and shoring involved. Interior walls will need to be opened up. If you like the plot, you could demo the house and start fresh. That is what I should have done. Instead, I learned how to replace bearing walls rotten joists, etc.
We like the plot but it's too much to build we think. If we sell for anything over what we owe, and just start over, we think we will be better off. Plus I'd love to be closer to work. And for as much as we like being near a lake, we've found that we rarely use it. No good reason to build and then pay high taxes for something we really don't use.
Would a buyer be interested in property as a lot? Would that cover your mortgage? Harder to sell as property more difficult to finance.
Harder to sell, I know. Cash buyer most likely.
Originally Posted By: andyd
Plywood gussets screwed between the rafters and ceiling joists (collar ties) after the ridge is jacked up. All sorts of pulling, jacking gear blocking and shoring involved. Interior walls will need to be opened up. If you like the plot, you could demo the house and start fresh. That is what I should have done. Instead, I learned how to replace bearing walls rotten joists, etc.
We like the plot but it's too much to build we think. If we sell for anything over what we owe, and just start over, we think we will be better off. Plus I'd love to be closer to work. And for as much as we like being near a lake, we've found that we rarely use it. No good reason to build and then pay high taxes for something we really don't use.
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