possible purchase in Saint James City (Homestead, Punta Gorda: short sale, real estate, rentals)

[dualie]

I've read as many posts here as I can on buying a home in this area.
I've done my research, been looking and looking for around 2 yrs via the internet and talking to realtors. And, I've rented a home in the area for the winter a couple of years back.

I think I may have found the right house. I can pay cash and it is a bank approved short sale property. Although I wonder if I should consider a mortgage of some size so as not to tie up cash.

I've toured the house (and am going back to look again). I've called a insurance guy for a quote. I am lining up an inspection.

I've never purchased a house before (husband and I built our over 30 yrs ago) and my husband has passed this past year, so I'm on my own.

The house is small and needs some TLC, but I think it's a decent buy, has most everything I've been looking for (except a pool!!!) and on very good water. This will be a vacation home, and or a possible rental....

With all of your collective wisdom here and expertise, any suggestions on things I should be asking? Things to look out for?

Thanks in advance.... I may be an Islander!
Dual

[Compression]

St James is a quaint, quiet little town. Small town, is a small town however....in short order many will know you, and your business.....perhaps.

Sounds like you have the bases covered re inspections, and other due diligence.

Opinions will vary on the question of paying in full, or taking a mortgage. Depends on your personal situation, and your outlook on the future of the economy. Consulting an accountant/personal financial planner is probably a good idea.

Sounds like you're in a position to tailor the best possible scenario for yourself, it would be a shame not too......

Best of luck, and enjoy the island life.......

YC.......

[rikoshaprl]

I'm in favor of taking a mortgage with payments you can easily afford. The simple reason is the way our government is printing money there will be increasing inflation. You will be paying back your mortgage with dollars that have less value. Good luck!

[CCRESI]

So, you already put an offer in and it was accepted? Having an inspection done leads me to believe this...please specify.

I would get many insurance quotes. Does the property have a seawall or dock? Estimates...
Get estimates on the work it needs, by qualified contractors. Make sure to look at the 2011 Taxes and know they can fluctuate, esp. if you rent it out and don't claim Homestead exemption.
How is the access? Ask a few neighbors how long it takes them to open water.
Get a pool estimate. If you are thinking of vacation rentals, you should really think about a pool.

Make sure you can afford it. Write down everything, every cost associated with owning, and your cost of living where you are, and just be sure you are not going to end up house poor. Talk with a financial advisor.

Hope this helps.

[dualie]

I did it... signed the papers today and now we wait and see if accepted.
I haven't had the inspection done yet, waiting for offer acceptance, but do have a guy lined up ready and waiting for the go ahead.

The house is right at the end of a canal which leads directly into the harbor, couple minute ride at most! I can see the channel from the dock. Seawall that looks to be in good shape, small dock, no lifts.

I had quite a few things that I had to have and this had most all of them. No deed restrictions, no HOA, for some that wouldn't be a good thing, but that was what I was looking for. I'm one of those RV owners who wanted it parked right at my house, and I got it!

It was with a shaky hand that I signed, but now I am stoked and hope all goes smoothly.

I'm ok with the finances, but may consider getting a 50% mgt on it just so I am not tying up cash. Have to check to see if the tax savings is worth the effort or not.

Pool.... yes, that is a definite. Not sure about when but for sure I'm having a pool!!!!! I've always wanted a pool and hubby would have none of it. Now that I'm on my own.... I'm getting a pool! I hope.

Thanks for the few responses I got..... you guys have really been very helpful in my research and decision. (Even if you never knew it!) The realtors who share their knowledge on this site are amazing... thank you all!
Dual

[Compression]

Hope it all goes well for you.

In regards to the pool, yes, they are nice, but they are also kinda like a boat. The maintenance costs can aggravate you after a time. Remember the cost of the pool, is just the cost of admittance to that particular cash spending club.

At least you can sell a boat when you get tired of it......the pool, not so much.

Not trying to sway you one way or the other, just something to think about, and you have plenty of time to think on that aspect of the purchase.


YC.......

[RUGoofy38]

I would recommend buying with cash, to get the best deal, and then mortgaging the property to some degree to free up some cash. Mortgage rates are near historic lows, so the money is comparably cheap. Although I have hope the economy has permanently turned the corner, I would want some cash should another shock (like the European debt crisis) throw us into another severe recession...longer term also, like rikoshaprl said, It is easier to chase inflation with a liquid asset available to buy something, than having it in an asset which may be underperforming for years; real estate.

[Samiamnh]

You go girl ! You bought at the right time and you seem to show a lot of savvy and I congratulate you for having the guts to pull the trigger on that deal.There is money out there for pretty close to 3% so it might be smart to get a mortgage and stash a little cash for a rainy day....but your accountant or advisor can tell you better.
Just enjoy the place and plan your next move for rentals,pool or whatever.It's always a rush to enter into a new venture and I wish you well.....I'm sure everyone on the forum does as well.

[dualie]

Thanks Samiamnh- it was scary, but now am very excited it goes through. First hurdle of owner signing is done, now it's off to the bank for them to agree.

Talked to my accountant fellow and he gave the green light for cash- no real help for tax purposes in my case. But I may still pursue a mgt so all the money isn't tied up. I agree that cash is king today! I was very lucky that my husband made the arrangements that he did.....he was a wonderful guy and I miss him.

I think he would be proud of me... or else he's up there steaming mad. The night before I signed, I talked to him and told him he better send me some kind of sign... the dog pooped on the floor that night, so not sure if that was the sign or not!!!?? If so, it was Holy Sh*t!!!!! He did have a wonderful sense of humor.

I'm off for shopping to look at furniture and all that fun stuff I'll need for the place. Not buying yet of course, just looking. Part of the fun!

Any suggestions for good consignment shops in the CC or Punta Gorda neck of the woods?

Ka-ching!

[rikoshaprl]

We found furniture to be more expensive here than it was up north (Long Island), especially in consignment shops. There are three or four shops on Del Prado. Prices go up in the winter too.