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Old 05-03-2018, 06:49 PM
 
25,872 posts, read 49,775,165 times
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Quote:
Originally Posted by captainmidnight View Post
Has anyone here bought a "cheap" house and tore it down and used that land/utility hookups/etc to build a new house?
As a kid walking to school I would pass by boarded up city owned single family houses and wonder what if???

The only other urban place where I have seen similar is when I was in Detroit proper... boarded up/abandoned homes were plentiful.

The city had a deal where they would sell you the abandoned home for $1 provided you moved in and stayed for 5 years AND made $5k in improvements... simple as a new roof, paint and windows...

The irony is these homes that people walked away from in Oakland 35-40 years ago are now selling for 400K

The saying is materials are cheap and skilled labor costly...

Bundles of basic shingles/flashing with roof top delivery might cost $2500 for a modest home... figure at least 5k but more like 6k for labor here.

To make a go starting out you need to place little value on your time or think of it as the price of an education.

As far as tear downs they are more becoming more popular here or leaving up one wall so a "Remodel" permit will suffice instead of New Construction which comes with tons of fees here... easily 50k or more for impact and such.

One of my friends removed 95% of a home he bought... left up one wall that was non-conforming as it was just about on the lot line and the also was Point of Entry for Utilities... he paid 600k for the property as is and another 400k to remodel... in today's market says it is worth about 1.7M in San Francisco.
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Old 05-05-2018, 07:15 PM
 
Location: Minnesovia
2,510 posts, read 642,405 times
Reputation: 1528
Quote:
Originally Posted by LifeIsGood01 View Post
It's for anyone, you can buy it with cash. Anyone can buy an with an FHA loan if they qualify there are no income limits but your debt to income ratio must be at a certain point to qualify and you have to live in the home. If you buy with cash you can rent it out.
Quote:
Originally Posted by JimG2 View Post
Can you build a bird house?
Can you build a dog house?
Can you build a 12x12 tool shed with a gable roof?
Can you wire a 20 amp circuit to the appropriate number of electrical outlets?
Can you sweat a pipe?
Can you tape gyp board?

Then YES, you can. But you probably need a month NOT living there to renovate the bathroom (I did one on a long weekend start to finish), and your bedroom. Then you work ONE ROOM AT A TIME.....Try to do more than one room at once and you will feel overwhelmed and get frustrated. If the house only has a 60 amp service, you probably need to hire an electrician to upgrade the panel and may as well have him run the new circuits. Could easily be an $8-$10 grand job....Got that kind of cash? You may have to get a construction loan. If the bathrooms are rip out old and put in new with no layout changes, might not be too tough.... (3 days start to finish if you use mix it yourself quick set joint compound and know how to tape and know how to sweat pipe)

I'm assuming a 1,000ft ranch which are cake to work on. If a cape cod or colonial, electrical you kind of need to work from the top down, which may mean slots cut in the first floor walls so sparky can run his wires.

Hardwood floors? Only fools refinish their own hardwood floors. If you ever watch the pros do it, you would say NO F'N way..... They are beasts. Worth every penny for them to do it. And rent a motel room for the duration of that job. Even the waterborn finishes take a day per coat to dry. And obviously, floors get done last, after finish painting.

And if you are laying NEW hardwood floors.......easy peasy. During the project you WILL be buying a pancake compressor and a finish nailer. You only need to RENT, the floor nailer and buy the nails. The last place I rented from only charged me for nails used. huge flat of like 5000. Only charged for what you used....they inventoried the box. Knew what was in it when you rented, knew what you used. that's what you paid for, plus the daily rental. and if there are existing floors with a section here and there that are shot, You figure out whether it's white oak, red oak, or pine (the most common ones) and with a Roto-zip, you can cut out the shot areas and "tooth in" new wood. THEN have the floor guy come in and sand it all smooth....or pay him to do it.

By no means easy, but you can do it.

Roof: If a ranch, and you have buddies (4 minimum) willing to help strip the old roof and schlep 80 pound bundles of shingles up a ladder, in exchange for grilled steak dinners and beer at quitting time, go for it..... you bought the pancake compressor (not sure if it's up to a roofing nailer) just rent the nailer and buy a case of nails. Just check with the inspector when you get your permit if they require a 3ft barrier or a 6 ft barrier. Cape Cod, pitch is too steep, hire a roofer. Colonial, pitch might be close to a ranch, but from the edge to the ground is 20 feet. You might want the pro's (with insurance) for that.

I can probably go on forever.....

Good luck with your deal.

Thanks. The more I read the more doubts I have...at least about run-down properties/houses.


I'm going to figure out somewhere to invest my money though.





Quote:
Originally Posted by LifeIsGood01 View Post
It's for anyone, you can buy it with cash. Anyone can buy an with an FHA loan if they qualify there are no income limits but your debt to income ratio must be at a certain point to qualify and you have to live in the home. If you buy with cash you can rent it out.
Well somewhere down the road I will have a stash of cash and right now I'm saying every day I move forward. I'm very frugal and save just about everything I get - I never have liked to waste my money on new/flashy cars and stuff like that, shop at Goodwill almost exclusively now.


I saw too many of my friends just pis their money away every weekend drinking or on material trash.


I had issues in my life I feel like I'm leaving behind me and by the grace of God maybe things will turn around in my life down the road not too far...





Quote:
Originally Posted by Ultrarunner View Post

The city had a deal where they would sell you the abandoned home for $1 provided you moved in and stayed for 5 years AND made $5k in improvements... simple as a new roof, paint and windows... .
I'm almost certain the Dayton's Bluff neighborhood of my side of town did that exact same thing as well. It might have been an urban legend but I remember it exactly like that - $1 a home and some stipulations with what you had to invest in the property.


That's the same neighborhood my university is in - Metropolitan State University, in St. Paul, MN.


The University keeps adding on and that particular campus does look nice. I'll have to ask around to see if that was the deal I remember back when.

Last edited by Kavalier; 05-05-2018 at 07:24 PM..
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Old 05-06-2018, 10:09 PM
 
Location: Columbia SC
7,976 posts, read 6,735,806 times
Reputation: 10720
Quote:
Originally Posted by Kavalier View Post
What are the potential pitfalls or challenges (if this is even possible)?


Let's say...you find a house for $20,000-$40,000 range - and you just want to put money into it as you live in it.



I guess most of you are going to say there are too many variables (what is the neighborhood like? How much is the house missing? What is the property tax? stuff like that...)


But let's assume the foundation is good. Let's assume you have the basics with the house (water heater, furnace, running water) and it's in an older suburb.



How much would it cost to just keep the house going with running water and heat in the Winter?
I know two couples that got divorced and one of the major issues was a forever in repair house.
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Old 05-07-2018, 09:26 AM
 
10,276 posts, read 6,523,579 times
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Quote:
Originally Posted by johngolf View Post
I know two couples that got divorced and one of the major issues was a forever in repair house.
Both spouses have to be on the same page and be reasonable and deal with problems. If only one of them s on board that's gonna create problems. Chances are it's just and excuse and the marriages would have never worked.
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Old 05-07-2018, 11:08 AM
 
110 posts, read 40,026 times
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as long as foundations are good, and all you doing are just cosmetic works, get a good deal on the price and make sure market is not going down hill, then go for it.
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Old 05-07-2018, 11:35 AM
 
Location: Minnesovia
2,510 posts, read 642,405 times
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Quote:
Originally Posted by HappyNewMe View Post
True - though, foreclosed homes are sold often at much cheaper prices, but are not necessarily in that awful of a shape. OP, check out HUD listings: https://www.hudhomestore.com/Home/Index.aspx
Then there are those with "cash only" prices, due to not being financeable - their problems vary, but could still be fairly livable from the get-go, then can maybe get a personal loan to fix the most major issue...

But I agree with those who say it's probably best to use the cash for down payment and get a better quality house to begin with - at least, as a first experience.
I checked and I'm getting close to being able to buy something. They are houses in the middle of nowhere though it appears.

Quote:
Originally Posted by LifeIsGood01 View Post
If you buy with cash you can rent it out.
This just might be the way to go.

Is it hard to find HUD homes in desirable locations/cities?
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Old 05-07-2018, 11:50 AM
 
98 posts, read 40,501 times
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Just be careful.

One first-time flipper I know did a full and really elegant redo of a 1920s house with original wood floors and other great details. Buyer came in with an excellent agent who advised a meth test and that house is now considered uninhabitable. I can’t even speculate what they spent.

Another very experienced flipper bought a small house planning on a quick job - basic electrical and plumbing upgrades, new roof, cosmetics - only to discover the house was structurally unsound. Six YEARS later it is finally done. They sold it for 210K more than they spent to buy it and they still lost money, due to the cost of structural engineers (!) to bring the building up to code.

You never really know what you’re getting into until you’re into it.
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Old 05-07-2018, 12:10 PM
 
10,276 posts, read 6,523,579 times
Reputation: 10857
Quote:
Originally Posted by CapitalBat View Post
Just be careful.

One first-time flipper I know did a full and really elegant redo of a 1920s house with original wood floors and other great details. Buyer came in with an excellent agent who advised a meth test and that house is now considered uninhabitable. I canít even speculate what they spent.

Another very experienced flipper bought a small house planning on a quick job - basic electrical and plumbing upgrades, new roof, cosmetics - only to discover the house was structurally unsound. Six YEARS later it is finally done. They sold it for 210K more than they spent to buy it and they still lost money, due to the cost of structural engineers (!) to bring the building up to code.

You never really know what youíre getting into until youíre into it.
Even experienced flippers don't know what's behind the wall until they rip it out. A lot of the time they find wood rot caused by termites from the past. Some other times the supporting beams where they want to open the kitchen and don't seem to be load bearing were put in wrong and have to be replaced.
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Old 05-07-2018, 12:12 PM
 
10,276 posts, read 6,523,579 times
Reputation: 10857
Quote:
Originally Posted by Kavalier View Post

Is it hard to find HUD homes in desirable locations/cities?
I don't know. I think some of them start out as bids and if no one wants them you can buy them. Search online. There are not a lot of homes even available. in the whole state of Florida I recently checked and there were only 50 available.
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Old 05-07-2018, 02:00 PM
 
110 posts, read 40,026 times
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my boss who had many experienced in building houses and also own some properties, at his late 50s early 60s, he bought a huge huge 100 years old house, 5 stories high, 2 kitchen and a coach house on the side, it needed a lot work but he got good discount and is capable of renovating it until he take down a wall and found out whole house is structurally unsound, what my boss explained was that imagine a 5 stories house putting all the weight on few sticks and if he dont fix it, the house may collapse any possible time.

it was few years ago, and house still not fully repairs, not even close, but he still live inside and still alive...so....
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