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Old 04-25-2018, 05:46 AM
 
Location: Minnesovia
2,451 posts, read 629,701 times
Reputation: 1497

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Hey all,


I have some interest in buying a "junk" house and I am wondering what are all the pitfalls and issues I might have and/or run into.


Hopefully I don't drag on too much here.

  1. 1. I have five figures more than once over but that is all I have.

    2. I don't believe in the stock market for reasons I won't get into here, but I don't believe it in.

    3. I want to "invest" my money, but I wonder if buying a house(s) would be better than buying gold/silver? Gold/silver can be lost if you don't have a safe-deposit box, too. A house is always going to be there (as long as doesn't get nailed by tornado)

    4. What issues does a "junk" house like that have? Gutted appliances/water heater/copper pipes throughout the property? Frame damage?

    5. The same house that was listed for $17,000 here was on the market later within that same year. I wish I could say I know what the "flipper" sold it for but It turned around so quickly I don't.

    6. If I buy a cruddy old house to work on or "add to" as I live in my other place, what price MONTHLY would it cost me, bottom of the barrel just to keep my house? Would I have to keep water/gas on in the property, if I didn't live there? Property tax, obviously?



If you can help me with any of this, I would be grateful. I think the house could potentially be more of an "investment" I didn't even "flip", at least not right away. What I am saying is I don't even know if I'm looking at "house flipping" as the means to an end here. My means to an end is more of it's SOMETHING - unlike stock or speculations that I have little faith in, at least it's tangible. I need to put my money somewhere and I don't trust stocks and I don't even know if I trust my bank to be standing in a serious terrorist attack or some sort of other calamity that could hit this country.


If you can answer some/any/all (if they make sense) of my questions, I'd be much obliged.
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Old 04-25-2018, 06:13 AM
 
Location: The Triad (NC)
26,837 posts, read 57,830,396 times
Reputation: 29235
Quote:
Originally Posted by Kavalier View Post
I have some interest in buying a "junk" house...
and I am wondering what are all the pitfalls and issues I might have and/or run into.
They are myriad. Whatever you buy... have an exit plan to unload it if/ when you need to.

Quote:
If you can help me with any of this, I would be grateful.
Get a job where you get PAID to learn the RE own/manage skills you'll need.
When you are able to answer your various questions without looking things up...
THEN you might be ready to consider using your own money to do a deal.
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Old 04-25-2018, 06:15 AM
 
10,265 posts, read 6,491,094 times
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First you have to have a great inspector. Make sure it is structurally sound, no termite damage, working or easily fixable plumbing, decent electrical, you don't want aluminum or knob and tube or cloth wiring. You will also need a furnace. Also check the cost of the insurance, a tornado should be covered if you get insurance so that won't take it out. Plus you have to check how much it will cost in property taxes. Make sure the home doesn't have mold issues too or asbestos. If it's in a historic district forget about it, you need to restore it to stronger standards.

$17K is the price of a new compact car. Unless homes cost less than $50K in that area in decent shape I wouldn't even look at a $17k one .
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Old 04-25-2018, 06:19 AM
 
Location: Minnesovia
2,451 posts, read 629,701 times
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Quote:
Originally Posted by LifeIsGood01 View Post
First you have to have a great inspector. Make sure it is structurally sound, no termite damage, working or easily fixable plumbing, decent electrical, you don't want aluminum or knob and tube or cloth wiring. You will also need a furnace. Also check the cost of the insurance, a tornado should be covered if you get insurance so that won't take it out. Plus you have to check how much it will cost in property taxes. Make sure the home doesn't have mold issues too or asbestos.

$17K is the price of a new compact car. Unless homes cost less than $50K in that area in decent shape I wouldn't even look at a $17k one .
I can't figure out how it was so quickly flipped/turned around. Maybe it was a shady landlord who just slapped some bandaids on it (paint and drywall) and are renting it? There is a crumby rental house just next to it.



If I bought such a property what kind of money would I need to spend monthly, just to keep it, as i lived with my girlfriend or family?



I guess that is subjective since every area has different property taxes???
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Old 04-25-2018, 06:20 AM
 
Location: Minnesovia
2,451 posts, read 629,701 times
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Quote:
Originally Posted by LifeIsGood01 View Post
First you have to have a great inspector. .
My dad did mention the inspector thing to me. He said they basically tell you how much you have to put into the house in order to bring it up to livability, I think is what he said.
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Old 04-25-2018, 06:26 AM
 
10,265 posts, read 6,491,094 times
Reputation: 10837
Quote:
Originally Posted by Kavalier View Post
I can't figure out how it was so quickly flipped/turned around. Maybe it was a shady landlord who just slapped some bandaids on it (paint and drywall) and are renting it? There is a crumby rental house just next to it.



If I bought such a property what kind of money would I need to spend monthly, just to keep it, as i lived with my girlfriend or family?



I guess that is subjective since every area has different property taxes???
I have no idea, but make sure you get a good inspector. You can't move into a home that is in such bad shape that it will be condemned by the city, then you won't be able to live in it until it's fixed to city standards.
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Old 04-25-2018, 06:30 AM
 
10,265 posts, read 6,491,094 times
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Quote:
Originally Posted by Kavalier View Post
My dad did mention the inspector thing to me. He said they basically tell you how much you have to put into the house in order to bring it up to livability, I think is what he said.
Yes basically an inspector tries to find everything that's wrong with the house. It usually costs about $300 or more depending on the house size and the local costs.
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Old 04-25-2018, 06:30 AM
 
Location: Minnesovia
2,451 posts, read 629,701 times
Reputation: 1497
Quote:
Originally Posted by LifeIsGood01 View Post
I have no idea, but make sure you get a good inspector. You can't move into a home that is in such bad shape that it will be condemned by the city, then you won't be able to live in it until it's fixed to city standards.
When you say 'get a good inspector' are you saying someone I know personally - like from one of the churches I attend or something?


Or just someone who is reputable in the surrounding area?


How much is their fee to inspect a property for you? Do you pay a one-time flat fee?
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Old 04-25-2018, 06:31 AM
 
Location: Minnesovia
2,451 posts, read 629,701 times
Reputation: 1497
Quote:
Originally Posted by LifeIsGood01 View Post
Yes basically an inspector tries to find everything that's wrong with the house. It usually costs about $300 or more depending on the house size and the local costs.
Okay. Just saw your post here.
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Old 04-25-2018, 06:34 AM
 
10,265 posts, read 6,491,094 times
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Quote:
Originally Posted by Kavalier View Post
When you say 'get a good inspector' are you saying someone I know personally - like from one of the churches I attend or something?


Or just someone who is reputable in the surrounding area?


How much is their fee to inspect a property for you? Do you pay a one-time flat fee?
Yes someone reputable that can fill out an inspection report that is insured. It can be from your church, but not an amateur unless they are going to do it for free.

Another huge expense I forgot to mention is the roof. Inspections start at around $300 in some places.
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