WWYD---Fixer house/moving to town

[Scarlett]

We have a paid for house that still needs work.  We have done sooooo much.  We know if we do the rest of the work it will bring a good price and make a nice profit so that we could buy a smaller place in town that doesn't need work.  Maybe even build.

 

I am certain we can't go on trying to cash flow it and/or dh do the work himself.  He has a good full time stressful job in the city and I just don't want him doing more.  So at this point our options are to borrow money and fix it up or try to sell it as is.  I just go round and round about this in my head.   Just for good round numbers lets say as it sits it would bring 100K.  We need about 30K to fix it which would cover labor too.  Then it would be worth at least 130K maybe even up to $160K.  I guess it is the maybe that gets me.  Is it worth the gamble to make 30K more?  If we could get 100 we could get a very small mortgage and have a nice house in town.  We only paid 40ish for it.  I think it was $43 with the auction fee.  So we won't lose money. 

 

So WWYD?

[Dynamite5]

Yeah, lots of unknowns.  It will cost you to borrow money to hire the renovation finished, plus you'll then pay a realtor fee (at least the buyer's fee, perhaps seller's fee) as well. And you aren't sure about selling it afterwards. Yikes. That's a lot to take in. 

[vonfirmath]

I'd get out of it and move. Not worth the risk or the hassle! :)

But I'm very risk-averse

 

[Scarlett]

Yeah, lots of unknowns.  It will cost you to borrow money to hire the renovation finished, plus you'll then pay a realtor fee (at least the buyer's fee, perhaps seller's fee) as well. And you aren't sure about selling it afterwards. Yikes. That's a lot to take in. 

 

 

I know.  It is keeping me up nights! 

 

But if we borrow money to fix it, I will also pay off the very little debt (which normally I would NEVER do but most of it is house repair related) and so overall debt payment won't go up....and we would have a finished house to live in even if we couldn't sell it. 

[Scarlett]

I'd get out of it and move. Not worth the risk or the hassle! :)

But I'm very risk-averse

 

 

Me too!  But the potential is pretty good for a good return.  And it is really our only asset.  We have no savings to speak of (just emergency fund) or retirement. 

 

Ugh. 

[TammyS]

We have a paid for house that still needs work.  We have done sooooo much.  We know if we do the rest of the work it will bring a good price and make a nice profit so that we could buy a smaller place in town that doesn't need work.  Maybe even build.

 

I am certain we can't go on trying to cash flow it and/or dh do the work himself.  He has a good full time stressful job in the city and I just don't want him doing more.  So at this point our options are to borrow money and fix it up or try to sell it as is.  I just go round and round about this in my head.   Just for good round numbers lets say as it sits it would bring 100K.  We need about 30K to fix it which would cover labor too.  Then it would be worth at least 130K maybe even up to $160K.  I guess it is the maybe that gets me.  Is it worth the gamble to make 30K more?  If we could get 100 we could get a very small mortgage and have a nice house in town.  We only paid 40ish for it.  I think it was $43 with the auction fee.  So we won't lose money. 

 

So WWYD?

 

You need to figure out what you could likely sell it for.  If that number is $130K, you will definitely lose money because of loan fees and renovation over runs.  Indeed, you should add probably $5K for renovation overruns.  So let's say with loan fees, realtors fees, and reno over runs, you need to sell at $140K to break even.  What is the point of breaking even?  You've just worked for your buyer for free!  You did the work, they got the house.  Uh, no.

 

So now let's say you need to profit at least $5K for the few months of work you are probably looking at.  So now we know that in order for this to make sense, you need to sell at $145K.  How likely is that?  How upset will you be if you don't sell, or don't sell quickly? 

 

I would probably sell as-is unless I felt sure that I could sell QUICKLY at $145, or within a reasonable time frame at $150K.

[Sherry in OH]

I think it depends on the market.  Are fixer-uppers selling in your area?  If so, spending $30K to increase the value by $30K isn't worth it.  But, if potential buyers are looking for turnkey, you need to bring your house up to that standard.

 

I would contact a local realtor.  He or she should walk through the house with you and point out which updates would most appeal to the typical buyer.    

[Scarlett]

You need to figure out what you could likely sell it for.  If that number is $130K, you will definitely lose money because of loan fees and renovation over runs.  Indeed, you should add probably $5K for renovation overruns.  So let's say with loan fees, realtors fees, and reno over runs, you need to sell at $140K to break even.  What is the point of breaking even?  You've just worked for your buyer for free!  You did the work, they got the house.  Uh, no.

 

So now let's say you need to profit at least $5K for the few months of work you are probably looking at.  So now we know that in order for this to make sense, you need to sell at $145K.  How likely is that?  How upset will you be if you don't sell, or don't sell quickly? 

 

I would probably sell as-is unless I felt sure that I could sell QUICKLY at $145, or within a reasonable time frame at $150K.

 

 

Ok, that is the kind of thing I need to hear, so thank you.  On to the next issue though....can we really get 100K out of a half remodeled house that will be worth $160 when completed?  We live in a lake community about a mile or so from the lake and we have a pool.  And a large shop and an acre.  It is in a very nice area. 

[Scarlett]

I think it depends on the market.  Are fixer-uppers selling in your area?  If so, spending $30K to increase the value by $30K isn't worth it.  But, if potential buyers are looking for turnkey, you need to bring your house up to that standard.

 

I would contact a local realtor.  He or she should walk through the house with you and point out which updates would most appeal to the typical buyer.    

 

 

Yes.  I think this is the best next step in determining what to do.  Everytime we think we might call a realtor we think oh let's just finish this one thing first! 

 

Sooooo frustrating and exhausting.  I mean it hasn't been a mistake but I will never do it again.  LOL...does that make sense?

[prairiewindmomma]

These are all great questions for a realtor who really knows your market!

 

In one city I lived in, it would be worth it to fix up the house.

In my current one, it'd be better to sell an inexpensive house that needed a bit of work.

[TammyS]

Ok, that is the kind of thing I need to hear, so thank you.  On to the next issue though....can we really get 100K out of a half remodeled house that will be worth $160 when completed?  We live in a lake community about a mile or so from the lake and we have a pool.  And a large shop and an acre.  It is in a very nice area. 

 

Well, that's where the info gathering comes in.  The only way you are going to know is to get a GOOD, full time realtor in to give you comps.  Get them to comp you the house in it's current condition and in a renovated condition.  Offer to pay them a couple hundred bucks for their trouble, and be upfront that you aren't sure if you're selling yet, and that you don't have a timeline.

 

Depending on what the realtor tells you, you then want to talk to a contractor and find out what it will really cost to reno.

 

Then talk to the bank and find out what your finance options are.

[Scarlett]

Well, that's where the info gathering comes in.  The only way you are going to know is to get a GOOD, full time realtor in to give you comps.  Get them to comp you the house in it's current condition and in a renovated condition.  Offer to pay them a couple hundred bucks for their trouble, and be upfront that you aren't sure if you're selling yet, and that you don't have a timeline.

 

Depending on what the realtor tells you, you then want to talk to a contractor and find out what it will really cost to reno.

 

Then talk to the bank and find out what your finance options are.

 

 

Well, dh will contract it.  He will piece meal it out for labor....we have friends who could use the work that we know do good work.   We have made list after list and prioritized it and we know what we want to be finished and that it will be about $30K.  Good idea about offering a realtor a fee for their work.  Now I need to find a good realtor. 

 

Sigh. 

[Scarlett]

I am on realtor.com constantly looking.  Partly for my parents because they keep talking about  moving here and party for info gathering.  Shacks sell in hours it seems.  But fixers around 100 seem to sit a while.  But most of the fixers that are sitting are in town and our house is near the lake which is a huge selling point.  I pulled up the map near my house....one just sold for $140K but it sits too close to the road and although the house is nice it doesn't compare over all to our great spot.  Then there are several either on the lake or across the street...one is 500K...so it is all over the place in price. 

[TammyS]

I am on realtor.com constantly looking.  Partly for my parents because they keep talking about  moving here and party for info gathering.  Shacks sell in hours it seems.  But fixers around 100 seem to sit a while.  But most of the fixers that are sitting are in town and our house is near the lake which is a huge selling point.  I pulled up the map near my house....one just sold for $140K but it sits too close to the road and although the house is nice it doesn't compare over all to our great spot.  Then there are several either on the lake or across the street...one is 500K...so it is all over the place in price. 

 

Do you live in my neighborhood?

 

We have the samething, because it's very rural and near the water, we have poor people living right up close to rich people.  One house is about $110K, one block away a shack half the size with no real yard, but on the water, is $300K.  Around the corner, a $2M house.

[displace]

I would do superficial fixers. Things that are blatantly needing an update. For instance, coloring dated blue/pink 60s bathroom tiles white, replacing old carpeting with new (within reason), obvious repairs.

 

I wouldn't try to fix up 30% the cost of a home as it seems quite risky, especially with the other unknowns.

Edited January 18, 2017 by displace

[Scarlett]

Do you live in my neighborhood?

 

We have the samething, because it's very rural and near the water, we have poor people living right up close to rich people.  One house is about $110K, one block away a shack half the size with no real yard, but on the water, is $300K.  Around the corner, a $2M house.

 

 

Yes!  So it is difficult to know how it would go.

 

Someone is flipping houses in town because dh and I looked through the windows of this house.  Looks nice, nothing super fancy but fresh clean, new.  For $179.  Houses in that neighborhood are not going for that much....so I looked it up and they paid 49 for it in October!  No way they put even 50 in it.  But I also don't think they will get near 179...so it is one I am watching.  I started having this dream of finding a house that has been flipped and seeing if the flipper will take ours as part of the deal!

[Scarlett]

I would do superficial fixers. Things that are blatantly needing an update. For instance instance, coloring dated blue/pink 60s bathroom tiles white, replacing old carpeting with new (within reason), obvious repairs.

 

I wouldn't try to fix up 30% the cost of a home as it seems quite risky, especially with the other unknowns.

 

 

Well the siding outside is rotted at the bottom and we still need some windows and doors.  Dh fixed the grading issue that was causing water to hit the siding to cause rot but I think it would look scary to a buyer to see it, ya know.

 

And mostly that just leaves the kitchen which is a total gut job.....I know kitchens sell but honestly if *I* were buying a house I would love to do my own kitchen....We have done so much to this house I can't even explain. 

[G5052]

Definitely depends on the market. Recent properties I'm aware of in different parts of the country:

 

• House in a hot market; put $40,000 into because it was unlivable. Exceeded expectations.
• Condo in a dangerous neighborhood with a lot of Section 8 housing. Paid $500 to replace a faucet and clean it up. Sold it just below asking to the only offer.
• One dirty, small house in a hot neighborhood of tear downs. Paid $3000 to remove all the junk out of the back yard and thoroughly clean it up. Crazy bidding war between people who wanted it as a tear down.
• One professionally decorated and landscaped house in a flat market. Finally sold for 2/3 of the original asking price after a year.

Real estate is unpredictable!

[Carol in Cal.]

If it were me, I would take twice as long to fix up the house as is reasonable, and then right when I decided to sell it, possibly a day or two later, I would realize that I finally love it and can't leave.

DH would have reached that conclusion far earlier, you had him at 'shop'.  Which is why the fixer upping would have taken twice as long as reasonable, or at least is a strongly contributing factor, LOL.

[gardenmom5]

I'd talk to some re agents in your area. I'd talk to more than one.

[wendy not in HI]

We have done total remodels (roof, cottage cheese removal, wood floor install and seal, fireplace, bathroom gut, kitchen gut including moving a wall and drywalling, basement do-over, exterior siding repair and painting, all new windows and window framing, new sliding door...) and it is not fun.  I'm talking "this is killing our marriage" not fun. Years of it.  Why did we do it more than once, and why am I looking at fixer-uppers online again now that we are looking at moving, again???

 

But we did see a pretty good return on investment.  If we had hired the work done, though, I don't think we would have made any money.  We probably would have lost money.

 

So if it were us, even though it would kill me, we would stay another year (or two) and do the work.  And pay as we go to make it possible - one window a month...  Windows installed yourself are expensive.  Windows installed by an installer = twice the cost.  One window a month is a doable job.  I much prefer windows over a kitchen remodel...  

 

If I were to do the kitchen remodel again, I would insist on pre-made cabinets.  Dh built amazing custom cabinets (cherry - they were beautiful, but the sanding and the sealing and the slow-close hardware... luckily we put the stove and fridge in pretty quickly, but my "countertops" were folding tables for a few MONTHS!!), but I just think how easy it would have been to rip it out, lay the tile, and have those cabinets delivered!!  Heaven!!

 

Anyway, not the answer you were looking for.  I know.  Sorry!!  

[Annie G]

Ok, that is the kind of thing I need to hear, so thank you.  On to the next issue though....can we really get 100K out of a half remodeled house that will be worth $160 when completed?  We live in a lake community about a mile or so from the lake and we have a pool.  And a large shop and an acre.  It is in a very nice area. 

 

Dh and I are starting to look for a house for when he retires. What you have is exactly the kind we look for- a house that we can fix up and it'll be worth more than the money we put into it. (We don't count our labor cost because for us it's a hobby and a labor of love)  So maybe you can sell it half renovated if you can find the right buyer. But I'd probably start by getting an appraisal. Dd was just about to put an offer on a house that was flipped recently but the appraisal came in $20k less than the asking price, which stopped dd in her tracks. 

 

Are the things that still need to be done cosmetic, structural, electric...what?  Some things slow sales more than others- cosmetic no big deal but structural can really make buyers nervous. 

 

It sounds like you have a good chance of selling it without 'finishing' it if that's what you want. 

[TranquilMind]

Don't borrow significant money for renovations.  That's a concern.  Unless it were going to double or triple the value, it isn't worth it. 

[Scarlett]

If we borrow 30 and get 120 out of it it will be triple what we paid for it. It will sell for more than 120 if we complete it,

[Scarlett]

Dh and I are starting to look for a house for when he retires. What you have is exactly the kind we look for- a house that we can fix up and it'll be worth more than the money we put into it. (We don't count our labor cost because for us it's a hobby and a labor of love) So maybe you can sell it half renovated if you can find the right buyer. But I'd probably start by getting an appraisal. Dd was just about to put an offer on a house that was flipped recently but the appraisal came in $20k less than the asking price, which stopped dd in her tracks.

 

Are the things that still need to be done cosmetic, structural, electric...what? Some things slow sales more than others- cosmetic no big deal but structural can really make buyers nervous.

 

It sounds like you have a good chance of selling it without 'finishing' it if that's what you want.

Nothing structural really . We put a new roof on, got rid of the popcorn, custom retexturing of ceilings, 2 gutted and remodeled bathrooms, new pool pump and filter and pool repaired, wall removed to have open living, 1 bedroom remodeled, another about 90% so far fire place guts replaced, all new light fixtures and/ or ceiling fans, 2 exterior doors one window added to a room, exterior grading to stop water pooling, there is probably more I can't think of.

[barnwife]

No realtor is going to tell you not to put money into it.  They'll brag that kitchens will bring the best "return on investment", meaning you'll only lose 5% of what you put in, before their commission. 

 

Unless it's so bad that people can't see the potential, or it won't qualify for a mortgage, then I wouldn't hire the work done.  People want to do their own thing, some people don't count their own labor etc.  People are irrational optimists, especially about houses.  

[Carol in Cal.]

  I'm talking "this is killing our marriage" not fun. Years of it.

There is a huge, gorgeous Victorian mansion in our neighborhood that is known as the marriage killer.

No less than 3 couples have bought it and started working on it, and given up in the middle because they were getting a divorce.

It's in a terrible location, the curve in a very busy street, so it's not peaceful at all.

But the inside is so beautiful.  The trouble is, because the location is marginal and the house is bigger than the neighbors, it's hard to imagine anyone who fixed it up doing it for a profit--they would inevitably lose money on it.  So they have to be in love with it to attempt it, and to plan to live there for years and years. 

[Dynamite5]

You know, I might be tempted, if I were you, to purchase a for sale by owner sign, plop it in the yard and field phone calls for the next 30-60 days. You can probably figure out, in general, what the house is worth (to you and your dh, at least) and you'll find out quickly if people think it is overpriced! 

[Hilltopmom]

Well, we're closing on our new house in town tomorrow.

 

Fixed little things in current house, but are listing it as it is, as soon as we get out of it ( trying to show it with 4 kids living in it wasn't my idea of fun).

Over the years we've done a lot of work, but to sell, we replaced 2 old linoleum floors & patched holes in walls, replaced a rotten bathroom vanity, took down wallpaper, painted, etc. still need to replace kitchen faucet.

 

Are not replacing a skylight that leaks or tile floor that pops tiles constantly (mostly because it's impossible to get contractors to show up to do work in this area). I'm happy to knock down the price or give an allowance if need be.

We'll see what happens. Ours is in a unique location with 50 acres.

 

Good luck! Buying & selling kinda sucks.

[planner]

If we borrow 30 and get 120 out of it it will be triple what we paid for it. It will sell for more than 120 if we complete it,

Maybe so, but you won't be tripling you investment. If you paid 43, are borrowing 30, and I'd guess you've done at least 10 in improvements thus far, you've now invested 83 in the home. In my area, it would cost you a minimum of 7 for real estate fees. Now you're at 90. You're into the house much more than you're making it sound when you adopt the mindset that you're tripling you're money. That's not the situation here.

 

What would I do? I'd probably try to sell as is and if that doesn't prove fruitful, I'd then invest in the home. Unless there's a real urgency to move, I wouldn't borrow money to fix the house. If it were me and this was my only asset, I'd stay in the house and live in it they way it is and put a heavy emphasis on saving for retirement while slowly renovating the house.

[Scarlett]

Maybe so, but you won't be tripling you investment. If you paid 43, are borrowing 30, and I'd guess you've done at least 10 in improvements thus far, you've now invested 83 in the home. In my area, it would cost you a minimum of 7 for real estate fees. Now you're at 90. You're into the house much more than you're making it sound when you adopt the mindset that you're tripling you're money. That's not the situation here.

 

What would I do? I'd probably try to sell as is and if that doesn't prove fruitful, I'd then invest in the home. Unless there's a real urgency to move, I wouldn't borrow money to fix the house. If it were me and this was my only asset, I'd stay in the house and live in it they way it is and put a heavy emphasis on saving for retirement while slowly renovating the house.

I see what you are saying, however, I am wondering how I calculate lack of mortgage for 5 years into this equation?

[Scarlett]

You know, I might be tempted, if I were you, to purchase a for sale by owner sign, plop it in the yard and field phone calls for the next 30-60 days. You can probably figure out, in general, what the house is worth (to you and your dh, at least) and you'll find out quickly if people think it is overpriced!

I am thinking of this. I am going to talk to Dh and get his thoughts . I know he will want to get the pool looking good first and he is working on some touch ups to drywall from where a new door and window was put in.

[speedmom4]

So, if you sell your current house and buy a house in town with a mortgage will you be able to start saving for retirement? The fact that you currently have no mortgage would be huge to me. Why go into that kind of bondage? It sounds like you have more control where you are. You don't owe the bank money so you can update as you can AND save for retirement.

 

Sounds like the area you live in could potentially skyrocket in the next decade. My mom and dad had property and a home out in the boonies in the early 90s. It was on a lake and it was beautiful. Fast forward 20 + years and mansions are everywhere and my mom sold last year for a serious profit. 

 

Are you just tired of the renovations and are looking for an easy out? Or do you really want out of the area. My $0.02 is to NOT get a loan to renovate or get a mortgage. As Dave Ramsey always says, "Borrowers are slave to the lender." 

 

Good luck!

 

 

[Scarlett]

So, if you sell your current house and buy a house in town with a mortgage will you be able to start saving for retirement? The fact that you currently have no mortgage would be huge to me. Why go into that kind of bondage? It sounds like you have more control where you are. You don't owe the bank money so you can update as you can AND save for retirement.

 

Sounds like the area you live in could potentially skyrocket in the next decade. My mom and dad had property and a home out in the boonies in the early 90s. It was on a lake and it was beautiful. Fast forward 20 + years and mansions are everywhere and my mom sold last year for a serious profit.

 

Are you just tired of the renovations and are looking for an easy out? Or do you really want out of the area. My $0.02 is to NOT get a loan to renovate or get a mortgage. As Dave Ramsey always says, "Borrowers are slave to the lender."

 

Good luck!

We all want to be in town. And the upkeep here is expensive as are the utilities. My water, trash, gas and electric average $350 a month and in town my research indicates it would be about $150. Part of that is the pool pump but there are also expenses for the pool above electric. We have an acre to mow and weedeat and all of us are so busy there is no time to do it.

 

It is not a given we will have any mortgage in town. We definitely are aiming to not have one but I don't want another fixer beyond new paint and carpet or some such.

[vonfirmath]

I know.  It is keeping me up nights! 

 

But if we borrow money to fix it, I will also pay off the very little debt (which normally I would NEVER do but most of it is house repair related) and so overall debt payment won't go up....and we would have a finished house to live in even if we couldn't sell it. 

 

If you would like to live in it if you did these renovations, I'd look much more favorably at spending the money.

[planner]

I see what you are saying, however, I am wondering how I calculate lack of mortgage for 5 years into this equation?

Personally, I wouldn't consider the lack of mortgage into the equation. A CPA might view that differently though. I'm not sure. 

[Scarlett]

Personally, I wouldn't consider the lack of mortgage into the equation. A CPA might view that differently though. I'm not sure.

I am not sure either. But in my mind what we have put into it so far is much less than a mortgage or rent. For sure.

[planner]

I am not sure either. But in my mind what we have put into it so far is much less than a mortgage or rent. For sure.

For sure. I've sold more houses at a loss than I care to think about. When I factor how large of a loss I am willing to take, I pretty much figure how much it would have cost me to rent the house and subtract the loan interest. If I'm better off owning the house than I would have been renting it, I'll take the loss. I've always had plenty of equity and the losses haven't exceeded $30,0000. I also sold a house with a huge profit so I am still very much ahead.

[Scarlett]

If you would like to live in it if you did these renovations, I'd look much more favorably at spending the money.

I would at least be happy while we try to sell

[rjand6more]

We had a similar situation.  We lived in a house we completely renovated(an 1890's house)  It took 16 years.  We had no mortgage.  I wish we would have gotten a HE loan and just did it.  Dh did all the work when we could afford it.  We bought another fixer(did I not learn anything!?!?)LOL  We sold the 1st house for a big profit and sunk all that in this house.  We do have a mortgage now, but the bill reduction(less electric, gas, and no water bill) almost covers it.  Plus,. we have access to cheaper internet(and better).  We are in a nicer subdivision instead of the busy road we lived on.  The grocery stores are competitive in this are, so I spend less on groceries and I don't have to set aside a whole day for shopping because the stores I use are closer now.  So, to us, the "cost" of the mortgage IS worth it.

 

Some of the issue with Ramsey-type programs is the focus on finances being the #1 driving factor for all life decisions.  I think quality of life should be considered.  And if you have the opportunity to help out friends who need work and you really trust them, then why not?  Sounds like you have a good idea about real estate in your area. So, don't lose track of that and stick to time frames and budget.

 

Our realtor sold our house in 1 day.  He said it was obvious it was not a "flipped" house.  And it wasn't...We raised our family there for 16 years!  People in our area are worried about buying "flipped" houses since a lot of the time it is DIYers who are not competent trying to do all the work themselves.

[Scarlett]

Yes. You get it. I can't keep living in a half finished house. Well I can but I am

Not happy.

[Anne]

You know, I might be tempted, if I were you, to purchase a for sale by owner sign, plop it in the yard and field phone calls for the next 30-60 days. You can probably figure out, in general, what the house is worth (to you and your dh, at least) and you'll find out quickly if people think it is overpriced!

You know, I think this is a fabulous idea!!

 

Anne

[rjand6more]

You know, I might be tempted, if I were you, to purchase a for sale by owner sign, plop it in the yard and field phone calls for the next 30-60 days. You can probably figure out, in general, what the house is worth (to you and your dh, at least) and you'll find out quickly if people think it is overpriced! 

 

As a buyer, I would be extremely frustrated by this.  

[barnwife]

As a buyer, I would be extremely frustrated by this.  

 

Why would you be frustrated?  If you think it's priced too high, make a an offer.  If you don't see it, why would you care?  If you don't want to deal directly, then pay your own real estate agent.  

 

I would be LESS inclined to invest money in the repairs if it doesn't sell at first as is.  If you think the payback would be high enough to do the repairs, then do them first.  Otherwise, the market has already told you your price is too high, so why double down by trying to add more to what you're trying to get rid of?  

 

The difference between flipped houses and as is houses is usually about double the price, several gallons of paint and some cheap countertops and carpet.  I can't believe how much polished over junk flipped houses sell for in GOOD markets, but you'd be foolish to try it without expecting to double the money you put into it due to the risks and uncertainties.  

 

The lack of a mortgage doesn't have any impact that I can see on the decision.  It just means that you were wise or lucky when you bought the place, and you might be increasing your expenses in a new house.   Around here, property taxes in a city would amount to more than you're talking about saving in utilities and maintenance.  IF you were considering staying, you can reduce those expenses if that's the goal.  Pretty hard to avoid property taxes in a city.  

[Scarlett]

Around here, property taxes in a city would amount to more than you're talking about saving in utilities and maintenance. IF you were considering staying, you can reduce those expenses if that's the goal. Pretty hard to avoid property taxes in a city.

Property taxes aren't higher in town, where we would move to. The city where Dh works, yes for sure.

[kathkath]

It'll sel faster if it's nice. If your dh knows how to fix but doesn't have the time, go pick up some hourly workers outside Home Depot.

[Scarlett]

It'll sel faster if it's nice. If your dh knows how to fix but doesn't have the time, go pick up some hourly workers outside Home Depot.

We have workers. Friends who do it for a living. And two teen boys we would pay to help also.

[Scarlett]

Property taxes aren't higher in town, where we would move to. The city where Dh works, yes for sure.

I take that back.....they do look higher. But not significantly

[Scarlett]

Why would you be frustrated? If you think it's priced too high, make a an offer. If you don't see it, why would you care? If you don't want to deal directly, then pay your own real estate agent.

 

I would be LESS inclined to invest money in the repairs if it doesn't sell at first as is. If you think the payback would be high enough to do the repairs, then do them first. Otherwise, the market has already told you your price is too high, so why double down by trying to add more to what you're trying to get rid of?

 

The difference between flipped houses and as is houses is usually about double the price, several gallons of paint and some cheap countertops and carpet. I can't believe how much polished over junk flipped houses sell for in GOOD markets, but you'd be foolish to try it without expecting to double the money you put into it due to the risks and uncertainties. .

I am not understanding the above paragraph. :/

 

Are you saying for instance if we had bought this for 40 and bought some countertops and paint we would have been able to sell it for 80? That is actually possibly true because you really can't find much decent especially with a shop and pool and an acre for 80k.

[Scarlett]

It is very difficult for me to calculate what our actual investment is in this house. For starters we didn't buy it to flip. We planned to stay here, but things change. I can tell you the roof was 4K, pool repairs were 1000, the ceilings and paint for all walls 1000. That is all we did initially.

 

Then we spent about 1800 in materials to gut and remodel a bathroom. About that much on another bathroom. 1200 or so to TOTALLY remodel a bedroom, including new closet and new window and flooring and paint and trim. But Dh did all the labor on those 2 bathrooms and one bedroom.

 

So in my mind because I know we have really spent very little in materials over 4 1/2 years AND had no mortgage that has sort of been our mortgage. 500 per month for 4 1/2 years would have been about 27k . I know we haven't spent that much. Maybe close.

 

So I would like to just consider the original amount of 43 and whatever we get above that is profit. Does that make sense to anyone else?