Question about a house that needs work. (2013, agent, mortgage)

[herenia]

Hello Everyone,
I just bought a hud home that needs work done. Part of me thinks I should have offered less considering the work that needs done. I got the house for a little under 85% of the listing price. I'm a first time home buyer and was looking at houses between 125-180K range. I saw this and offered the money for it since it cost me roughly the down payment I'll need for a house in my prince range if you include the closing cost.

My major concerns for the house are the walls. The have cracks in them. I've had a few contractors look at them and they tell me it's not a big deal. Nothing structural but as a female, I found the cracks disturbing. I guess I'll have to get used to it. I'd like to spend no more than 15-20k for fixing it up.

I need the bathroom done. While I don't care for tiles, these ones look good (no mold or black spots and they're clean). Can I just replace the tub, toilet and sink or is it best to get rid of everything?

For two walls, one in the master and the other in the third bedroom that have cracks, I'd like it if the walls were taken down and new ones put in. The dining ceiling has some hairline cracks that i'd want fixed. I'm not sure if it has to do with the gigantic chandelier pulling down on it. As you can see from the pictures, there is plaster damage in the ceiling on the top floor. As you can see in the pictures, there are cracks in 3 the closets on the top floor. The first floor is walls are perfect.

The skylight in the bathroom is new as confirmed by two different contractors. There is another skylight in the hallway on the top floor but this one doesn't open up like the bathroom skylight. It's just some kind of glass on the ceiling.

There is no leak in the roof. It appears the damage on the bedroom wall is from an old crack that was improperly fixed.

The basement has some missing copper (please look at the picture). I checked the one for the bathroom via the 2nd bedroom and all the copper is intact. Is the basement stuff something very expensive to fix?? furnace also looks old

The kitchen floor appears new and we think it is so I'll keep those. However the cabinets are old and would prefer to change them.

Garage door is new but there is an open space between it and the basement that'll need to be fixed (see pic).

You can see pictures via the link below as I wasn't sure how to load them into a post.

The contractor who came to look yesterday told me I need a water meter. Looks like that's gone so I have to call the city today to come install one.

My main goal is to fix the top part although there is a laundry room in the back of the basement with the old washer and sink there so I'll need to fix that up a bit and get a new washer and dryer there. The basement has paneling and would like drywall along with that bar gone and the floors fixed. It's concrete. Would that cost a lot?

I'm 27 and young enough to probably do the painting myself. The last time I held a hammer was volunteering for habitat but it's been about 5yrs since I did any of that so I'm not a construction expert.

The floor except the living room is beautiful hardwood I can probably get sanded. I'm not sure what's underneath the ugly green carpet but i'd either need new carpet there or something.

Is my 15-20k goal enough to fix this place. I was thinking of hiring a subcontractor to do the work? Good idea or bad idea?

Any advise, suggestions or criticism, whatever will be greatly appreciated.

You can see pictures via the link below as I wasn't sure how to load them into a post.
http://giftymd.blogspot.com/2013/07/house-pix.html

[MrRational]

Originally Posted by herenia

I just bought a hud home that needs work done.
Part of me thinks I should have offered less considering the work that needs done.
I got the house for a little under 85% of the listing price.

Another way of phrasing this is that the experienced pro's who also saw that home...
people with years of experience managing rebuilds and their own crews...
recognized what it would require and so wouldn't pay as much as you did.
They probably wouldn't more than half of what you did.

Is my 15-20k goal enough to fix this place...?

To make the house into a "home" for you to live in? No.
It wouldn't be enough for those experienced pro's to do that either.
Beyond the specific dollar amount... you aren't experienced enough to do anything on your own.
---

Do (contract) the work required to pass inspection and then sell it by private party.
Hopefully your losses won't be too bad.

[BirdieBelle]

The photos don't come up when I click on the blog.

You said you bought it on "a whim." Not usually a good idea with a house.

Did you have it inspected? Why do you not trust the contractors who tell you they are no big deal?

The main thing I don't understand is how the house does not have a water meter. If it is hooked up to city water, it should have a water meter. That begs the question ... what is the water source? Well water??

So the main question is ... did you have the house inspected before you bought it? It sounds like you are in way over your head.

[399083453]

Originally Posted by herenia

Is my 15-20k goal enough to fix this place. I was thinking of hiring a subcontractor to do the work? Good idea or bad idea?

Since you don't know how to work on this yourself, its obvious you will need to hire it out. He will give you quotes for free. When you look at the quotes you will see if it meets your goals.

PS. None of your photos are viewable.

[luv4horses]

I would hire a reputable contractor instead of a single subcontractor. The contractor knows how to get a proper job done by the subs and it will be well worth the cost, especially since the contractor will probably get better prices from the subs. Just make a list of what needs to be done, ask the contractor for quotes for each item separately, then choose which ones to have done. Ask everyone you know if they have worked with a reputable contractor and to please share the contact info.

[Rakin]

It's a little late but as a 1st time homeowner who's not very familiar with home repairs, I would never have bought a home like this.
But that's another story.

You do need to find a good contractor you trust.
You've gotten good advice.
I'm not sure you'll be able to stay in budget but maybe you can do as much of the work as possible.

[herenia]

Hi,

It looks like the previous owners may have taken the water heater. If you look at the basement picture attached, it's the gap past the bar. The house gets water from the city. I just called the city and was told to call another department at 8 to set up the installation. There is the connection there for the meter but it is not hooked up to one. The guy pointed it out yesterday.

No, I did not have it inspected, which in hindsight wasn't smart on my part because I'd made an offer on a previous on another house back in march and backed out after the inspection based on the report. I did have 2 different contractors look at it at different times to tell me what needs to be done to be fixed. The one quoted 15k for everything (wall fixes, kitchen and bath, carpet in lr and laundry) but the basement. The other wanted each job section broken down. The house was winterized and I had the agent keep telling me it'll be too much of a hassle to dewinterize it and rewinterize it.

I was looking for a house in that area and a non-hud home that'll need some kitchen and bath updating would cost me 130's to 150's for that area. Something would cost me around 170's. The last forclosure I saw in that area sold for 83k in 09 and it was 2 doors down and they later resold it for $152 about 2 yrs ago. I got this for 49k and since the bank had charged me $500 for withdrawing the loan app for my previous house offer on my previous house because It had foundational issues and needed about 25k upgrades at an offer price of $125K, I figured i'd get something cheaper and avoid doing another mortgage app.

I realize the pictures take a bit of time to load but if you give it time, you can see it. Also, I attached them below.

thank you.

Originally Posted by Wmsn4Life

The photos don't come up when I click on the blog.

You said you bought it on "a whim." Not usually a good idea with a house.

Did you have it inspected? Why do you not trust the contractors who tell you they are no big deal?

The main thing I don't understand is how the house does not have a water meter. If it is hooked up to city water, it should have a water meter. That begs the question ... what is the water source? Well water??

So the main question is ... did you have the house inspected before you bought it? It sounds like you are in way over your head.

[herenia]

Hi,
I can't seem to edit my original post to add attachments to I added the pictures to the reply above yours. The living room is fine except for the ugly carpet. I will try to more quotes this week. thanks

Originally Posted by 399083453

Since you don't know how to work on this yourself, its obvious you will need to hire it out. He will give you quotes for free. When you look at the quotes you will see if it meets your goals.

PS. None of your photos are viewable.

[rational1]

Unfortunately you don't have the knowledge you should have to own a house that needs a lot of work (some of it minor some not).

One of the most important things is to know the difference between what needs to be done and what is trivial. Consider getting some basic books about home maintenance. Not to do stuff yourself necessarily but to increase your knowledge level.

> My major concerns for the house are the walls. The have cracks in them.

If we're talking hairline cracks in plaster or wallboard- as opposed to bowing away from studs- this is (1) trivial and (2) really easy to fix yourself.

[MikeJaquish]

I suggest you should now get a home inspection.
It could offer you a lot of value. A good home inspector will be objective, and have nothing else to sell but his consultation on the condition of the property.

If your numbers on price vs. value hold true, and the home inspector doesn't uncover any major surprises, you may do quite well if you are able to remodel so you get the best bang for the buck.