Can't buy a SFH in Twin Cities for 200K? (Minneapolis: hardwood floors, renting)

[rochestercheesehead]

Originally Posted by midwest456

thanks. I did like what I saw when I looked at realtor.com for Cambridge 175-225K but it is just too far from the city for me. Farthest out I am willing to commute would be from Stillwater, Lakeville or Otsego at this point.

Have you considered Hastings? It's a quaint little town on the Mississippi--pop. 15,000(?). Beautiful, beautiful town and far enough out to be somewhat less expensive, but not so far out that the commute is too long, etc. I think it's actually closer than Stillwater.

[rochestercheesehead]

I can't disagree that my attitude has held me back. Point well-taken. I had a very immature attitude until after I turned thirty. Since that time, it seems that my family has endured one crisis after another. I am currently referring to the year 2006 as "the year I finally became an adult."

Going back to school for training in a field that I find fascinating was a part of that process; I'm not getting any younger, but I'm not "old" yet.

Please forgive my sarcasm and anger. It tends to come out at times that I would be better off doing something more constructive, like sleeping.

I want to move to the Twin Cities because it is the economic engine driving the upper midwest and there are many opportunities available in my newly chosen field. I'm content with older homes, but I'd actually like to own a home for once where I don't feel like I'm settling. Four bedrooms are a must.

I don't believe that there is any such thing as absolute security--consider the recent murder on the outskirts of Waseca, a town with which I am very familiar since my in-laws live there--safety is relative. As long as I can live somewhere that I don't have to put up steel bars or worry that someone in my house will be hit by a stray bullet in a drive-by, I'll be content. If the area is nice and attractive but the schools aren't very good, I will find a way to send my kids to private schools.

So, any suggestions for areas in the $150,000-$200,000 range given my above comments?

Thanks!

[Cruz Azul Guy]

I don't know man. I don't know where you can find a nice 4 bedroom house for under 200k. Good luck with that.

[lotsakits]

I have a house for sale in Baldwin, Wisconsin. It is a small town now, but is growing. It is only about twenty minutes east of Woodbury, MN. It is 2002 square feet with an unfinished basement, 3-bed, 2 1/2 baths. Sale price: 284,900. It has wood floors, upgraded lighting and flooring, six-panel doors, and an audio system throughout the house. We have open houses on most Sundays. If you are interested call (651) 331-9001

[Bhaalspawn]

Originally Posted by HKB

Depending on how far you're willing to move out, you should check out the "exurb" counties of Wright (MN), Chisago (MN), Isanti (MN), and St. Croix (WI). Generally speaking, you can get more house for your money in those areas.

The only problem is that you have to ask yourself about the expense of the commute to your job. Not only will you spend more time in your vehicle (and the roads from the exurbs could become even more congested in the future) but you'll also be burning gas, which could increase to $6/gallon in a few years, especially if the folks who keep warning us about "Peak Oil" are correct.

[Bhaalspawn]

Originally Posted by rochestercheesehead

As I'm currently working on yet a third degree, I have no interest in med. school, I can't fathom paying for law school...

It should be noted that, contrary to popular belief, lawyers are not guaranteed high incomes. In fact, today the law schools are producing about twice as many lawyers as the market can comfortably support at middle class levels. I suspect that the same can probably be said for MBAs. Since everyone and their brother are now pursuing advanced degrees and professional degrees, the result of this veritable education arms race is an oversupply of people with advanced degrees. (We also have an oversupply of bachelors degrees.) Consequently, contrary to popular belief, I suspect that the nation has a large number of unemployed and underemployed-involuntarily-out-of-field bachelors degree holders, MBAs, and lawyers. In conrast, the AMA and/or the government has limitted the number of MDs produced in spite of the huge number of people who want to become MDs, protecting the physician job market.

I mean realistically, even if I could land a $70,000 a year job, which is unlikely, I shouldn't have a mortgage exceeding $140,000. If I get TOP dollar for my house in Rochester, I'd have $58,800 in equity after paying the realtor his $10,200 commission, which would put me in a house for 198,800. The more likely scenario is that I land a job at $48,000; sell my house for $150,000, leaving me with equity of $40,000 down and a mortgage of $96,000--less than my current mortgage, and a total of $136,000 for a house--$1000 less than I paid for my house in Rochester.

I don't understand the irrational exuberance that created this housing mess, either. Just where are all of these people who can afford to spend $300,000+ on a modest 2500 house coming from? Part of the problem might be new types of mortgages that use "creative financing" to allow people to dramatically overextend themselves. It's also possible that people moved money out of the stock market and into the housing market in the hopes of using housing as an alternative investment vehicle. I'm hoping that those greedy speculators (and many of the sub-prime mortgage lenders) end up going belly-up when the housing prices return to reality.

As you're thinking about the behavior that made it so difficult for the middle class and lower middle class to be able to purchase a home, you might enjoy a Pyrrhic feeling of justice by following this link to a blog called Sacramento Area Flippers in Trouble:

http://flippersintrouble.blogspot.com/

Some of those people are going to lose over $100,000, and it might not be over yet.

[MomsTn]

Apparantly you haven't been to Coon Rapids lately.
We live in Coon Rapids, my daughter goes to Sorteberg, the neighborhoods are very clean and people take pride in their community and their homes.

If you're looking at the lower end, say $140-$170k yes, those would be fixer uppers... but, if you are looking around $190-$225k you will find very nice homes.
Most of the parents at my daughters school grew up in the area, moved away and came back to raise their own kids here.
There is a lot of community togetherness and pride here.
On the fourth of July, you can take your lawn chair a few blocks down the street and sit with your neighbors to watch the parade.
At night, you can take your blankets down to Sand Creek, pick your spot and watch the fireworks.
There really aren't too many places that you can go to, to be that close to watching the display.
Every year, they have the carnival set up for the weekend and the kids all just love it.

I'm getting so tired of people thinking that "blue collar" is a dirty word.
Yes, Coon Rapids is made up of a lot of blue collar workers who work hard, and want the best for their kids.

There were some areas of Coon Rapids that were starting to go downhill but, thanks to an alert City Council, those areas are no longer an eyesore.
Just take a drive down Coon Rapids Blvd, past the exchange.
Those old dumpy buildings are gone.
They were torn down, and a new developed area is going to be built.

Coon Rapids has also built the new shopping area off of 242/Main, with just about every store imaginable.
We have an excellent hospital, good police support, an excellent fire department, and community spirit.

Originally Posted by HKB

A single family home for less than $200k can be found in the north metro near Blaine, but it will most likely be in a less desireable neighborhood. Coon Rapids and Anoka (blue-collar suburbs immediately west of Blaine) have many cookie-cutter 1950's/60's ramblers in the $150k-$200k price range, but many of them are dumpy and need a lot of work. I grew up in this area and I have to say that the homeowners in some of these neighborhoods don't show much pride in keeping their houses in good shape.

Good luck.

[MomsTn]

You will find that Anoka county has the lower taxes.
Hennepin, Ramsey and Sherbourne have the higher taxes.

Originally Posted by yellowsnow

I believe the metro is composed of 7 counties. These are: Hennepin, Ramsey, Dakota, Scott, Anoka, Washington, and Rice. I think I got them right. These counties pay the highest taxes.

The difference is quite a bit of money. When you look at the MLS, check the county and the taxes paid by the current owner. Or for example, look up 300K existing homes in Hennepin and Sherburne counties.

[MomsTn]

If you are looking at houses around $100k in Minneapolis itself, be careful.
Look at the neighborhoods. You might find a bargain, but, it could end up right next to a crack house.
I would be very suspicious of houses around that price.
Drive through the neighborhoods, check out how many houses are for sell, ask the people, if there are a lot of houses for sale, there's a reason.
I wouldn't necessarily rely on the Realtor, a lot of them just want to sell houses.
I know there are some really great neighborhoods right in Minneapolis or St. Paul, but, you will have to do your homework.
If something sounds too good to be true, it is.... there's a reason why that house has a price tag so low.

A lot of people commute from the burbs into Minneapolis, but, they have to deal with the traffic.
If you can afford buying a house in the higher real estate bracket, then, you can find some very nice homes in Minneapolis that have a lot of charm and character. Older homes with more square footage, with excellent neighbors and great community pride.
If you want to live right smack in the middle of Minneapolis and can afford the price, they are renovating some of the older buildings and selling off lofts.
You will find some very unique homes.

One thing to realize. If you are coming from other states and you had this huge house, and sold it for $250,000, you won't find anything comparible here. Unless, you are farther out in the burbs, and then, that is really questionable. You will most likely spend about $350 to $425k for the same house.
Real Estate is higher.
The cost of living is higher.
Depending on your job vocation, the pay will also be higher.
There are a lot of taxes here.
However, food and clothing is not taxed.
Restaurant food is taxed.
Minnesota has excellent schools, and an excellent health care system.

Originally Posted by Need_affordable_home

They looked fine in the pictures, if not a bit small. Some may need minor TLC. I have no idea about the neighboors in Minneapolis. I only know theres dozens of houses in the low $100s, this price range is affordable for some middle class people and could be affordable for the OP's goal of spending under $200k on a house.

[yellowsnow]

It's time to revisit this thread. Looks to me like this is becoming more doable every day. Don't give up, keep looking. Prices are continuing to drop!

I have a friend who has been looking at homes for a while. She can afford much more than she could even 6 months ago. She has decided to rent for now and buy later. Probably a good move on her part. She can jump in when she thinks the market has hit bottom.

Not good news for me! I need to sell a home! All the news about lenders in trouble and foreclosures leads me to believe prices are going to drop more.