in love with an old brick split-level with several issues? Should we pass? (subfloor, how much)

[livepaworkmd]

We are in love with a 1950s brick, split-level which is being offered below market price:

1) Great schools, secluded, large 1/2 acre lot, yet it is a very accessible neighborhood, inner suburb of Philly

2) 3 fireplaces, the biggest fireplace chimney is made with stone masonry, our inspector said that it is settling away from house, showed us the crack along the chimney- wall joint, showed us that the hearth stone is cracked on the inside. He can't say whether the settling is over or is ongoing, refers us to a structural engineer.
Other fireplaces have been converted to gas, but have rusty dampers etc, one fireplace has a missing hearth and a damper that is sealed shut due to corrosion. Another one has a gas log insert which might be a non-venting type but is being vented through the chimney.

3) Basement has had moisture on the inside, inspector says it is not a structural issue, will have to be regraded. My question is: how long has the sill plate, rim joist etc been soaking water? Could they be rotten already? There are signs of old termite damage, seem to be treated and no signs of active infestation.

4) Part of the stone foundation has never been pointed, will need to be taken care of.

5) Exterior is brick, several lintels are rusty, bricks have developed cracks.

6) Exterior window sills are rotten, will need replacement.

7) One shower stall is leaking, the water poured into the basement from the second floor, when the inspector did a standing water test; are the subfloor and floor joists likely to be rotten?

8) Insulation batts have been stacked against the rafters, our inspector says that the attic has no functional ventilation because of blocked gable vents and sealed windows. What effect might there be on the underlayer of the roof?

9) Attic electricals are a mess and a safety hazard.

10) Water heater and HVAC both might need to be replaced soon, they are more than 12 years old and have some back draft problems.

11) Other minor issues (no GFIs in kitchen, sunken front steps etc)

12) We also need to remodel the bedrooms because current owner made very personal changes to the original plan, without the remodel this house will likely have a very limited market. The remodel involves putting up some internal walls and closets, outlets etc. We got an estimate of ~ 15K for it.

We have budgeted 50K for everything and are hoping we can restore this house to its original state? We have no experience with contractors at all, have been living in apartments all our lives. After spending 50 K we will have paid close to what these houses sell for, in a good market. Not sure we could get that amount if we had to sell in a year or two. But we plan to stay for a long time (more than 10 yrs); barring unforeseen events.

Because the market has become such a sellers market now, we have no alternatives to this house. Will most likely have to settle for a town home in a different school district.

Please help; looking for a good pros & cons discussion that will help us decide.

[MrRational]

Originally Posted by livepaworkmd

Great schools, secluded, large 1/2 acre lot, accessible neighborhood,
inner suburb of Philly... below market price

That's what you're buying.
All the rest is an (extensive and expensive) sideshow.

If you can afford to do that extensive and expensive work...
and understand it well enough to space it out over a few years... then snap it up.
It's the classic "worst house in the best neighborhood"

We have budgeted 50K for everything and are hoping...
We have no experience with contractors at all...
But we plan to stay for a long time (more than 10 yrs); barring unforeseen events.

a) even experienced people never budget enough.
b) the key is in the pacing... understanding what work you must/can do before you move in
vs the work you can delay/postpone to be done over the course of the next several years.
(even if that adds up to more)

[Backintheville2]

I agree with MrRational. If you were only going to be living there for a year or two, I'd say no. But planning to live there 10+ years, I'd say go for it. It sounds wonderful!

[Hopes]

I say go for it. Many of the issues aren't major. As a result, it won't matter if you can't get them all done at once with the 50k. You'll have time to work on the less important things in the future.

So, I can't vote because there isn't an option. I say buy it and restore the most important things with the 50k now, and then slowly restore the other things a little at time.

[Ohiogirl81]

I'm crazy about 1950s split levels. I'd buy it in a heartbeat, make it a labor of love, and never leave.

Take care of the major issues (health and safety) now, and do the rest gradually.

[chet everett]

I hate questions like these because a) there is zero context as to how much of discount this property is being offered offered at compared to those with no / less major issues AND b) the OP rarely / never truly understands that some of these things are "normal" for even well built homes to experience over time and might not really be a "money pit" situation while others are signs of some catastrophe ...

If you have zero experience with understanding how much such condition issues should result in a discount I would recommend against shopping for homes in this category. Similarly I would discourage any buyer that does not experience in fixing these kinds of things from considering such homes. OTOH if you have family or trusted business associates that can guide you through this perhaps they are in a better position than folks out on the interwebs...

[texdav]

If your going to finance rember that it will have to apss inspection before the bank will fiance it, if otherwsie its upto you and your wallet.

[K'ledgeBldr]

I'm with chet!
You make no mention of comp's- regardless if its "under market". What's the differential? That's your budget! Otherwise, you'd just be throwing money away.

[livepaworkmd]

We are financing it; and it is a 'potential' short sale. The listing agent is sitting on the fence with respect to going to the lenders with the short sale proposal. She threatens it but has not actually done it, it was clear to her many months ago that this was a short sale after going over the loan amts, back taxes owed etc.

@ chet: the house is being sold in the low 200's, some houses in this neighborhood have sold @ 300K a few years ago, but most recent sales have been in the mid 200's trending down. The big problem for home sales in this area being very high taxes going upwards.

[mkarch]

Originally Posted by livepaworkmd

We are financing it; and it is a 'potential' short sale. The listing agent is sitting on the fence with respect to going to the lenders with the short sale proposal. She threatens it but has not actually done it, it was clear to her many months ago that this was a short sale after going over the loan amts, back taxes owed etc.

@ chet: the house is being sold in the low 200's, some houses in this neighborhood have sold @ 300K a few years ago, but most recent sales have been in the mid 200's trending down. The big problem for home sales in this area being very high taxes going upwards.

This doesn't sound good. If the owners haven't started the short sale process it could take a long time and the lender may fight for an unrealistic valuation. There are a handful of short sales in my area that have been under contract for close to a year - vacant. If the house is in need of immediate attention, what shape is it going to be in a year from now, and will the price you negotiated this year even be a good deal?

If this were a $200K house in a neighborhood of $400K+ homes, that's a different story - but this doesn't look like it has a lot of potential to appreciate given the amount of work you will have to put in.