quote:

I guess I should mention that the house is not in great shape. If I showed it to you you'd probably be embarrassed for me for even thinking of it.

That's how people make money in the real estate business. Houses that need a lot of work are typically not going to qualify for any sort of conventional financing. This rules out all of your regular retail homebuyers.

The important thing to remember is that a $200,000 house that needs $100,000 in repairs is not a $100,000 house. It's probably a $50,000 house. Your time, holding costs, etc have value which needs to be considered along with the repairs.

quote:

Originally posted by a1abdj:

quote:

I guess I should mention that the house is not in great shape. If I showed it to you you'd probably be embarrassed for me for even thinking of it.

That's how people make money in the real estate business. Houses that need a lot of work are typically not going to qualify for any sort of conventional financing. This rules out all of your regular retail homebuyers.

The important thing to remember is that a $200,000 house that needs $100,000 in repairs is not a $100,000 house. It's probably a $50,000 house. Your time, holding costs, etc have value which needs to be considered along with the repairs.

Yeah, time is something neither of us have in any abundance. I’m thinking I’d regret this everyday. Besides, there are way too many zeros in your example.

Paid 25k for that house I have, 10 years later worth twice that now. Low cost houses are a good thing, just for the land value alone. Could you put a RV on the one you're looking at, or is it a zoning issue.

quote:

Besides, there are way too many zeros in your example

I once offered $100 for a house which was on a property contaminated by old fuel tanks from a gas station. They countered with $10,000 and I declined.

The guy who bought it turned it into a tri-plex and it has been rented solidly for the last 15 years. Nobody has ever said a thing about the contamination. I still kinda kick myself in the butt over that deal.

I have done it a few times.

It works one of two ways.

1. The bank stands there and lets it go to auction if the price gets high enough or it is in such bad shape the bank wants no part of it.

2. The bidding is too low and the bank buys the property at what is owned plus fees.

You then approach the bank and try to buy it from them.

I have done both.

You have less chance at number 2 as the banks have their preferred buyers list that right checks or they know will take it off their hands without a problem.

Decide what you are willing to spend.
Do not get into a bidding war.

Assume it is going to need a lot of work and bid accordingly.

Good Luck

The amount owed on the house is $48585.34. It might be worth half that. Doesn't matter anyway as the auction was continued until 3-12-2025.

quote:

Originally posted by mark123:
The amount owed on the house is $48585.34. It might be worth half that.

Did you miss a digit, or are you saying that the house and land together are only worth ~$24k?

Heck, around here you couldn't get a mud hut on a 1/10th acre lot in a haunted indian burial ground for only $24k!

quote:

Originally posted by RogueJSK:

quote:

Originally posted by mark123:
The amount owed on the house is $48585.34. It might be worth half that.

Did you miss a digit, or are you saying that the house and land together are only worth ~$24k?

Heck, around here you couldn't get a mud hut on a 1/10th acre lot in a haunted indian burial ground for only $24k!

$24k is generous. It is 1/10 acre, and maybe a step above a mud hut. Corner lot so double taxes, too.

"I think that may be a lot better for my boy to be so much closer. We can most likely get support staff to handle him and help him keep the place tidy through human services. "

Think real hard on what is best for the boy.
And confirm the support angle

quote:

Originally posted by rizzle:
Paid 25k for that house I have, 10 years later worth twice that now.

You do realize the unless you have put zero dollars into this, that's not a great return? I mean ZERO! No taxes, no insurance, no repairs or maintenance, no lawn care...... That's about 7%, at a very high risk. Before considering the costs of carrying it for 10 years.

Unless you make large improvements rent out or live in a house, that's going to be true.

quote:

Originally posted by Georgeair:

quote:

Originally posted by rizzle:
Paid 25k for that house I have, 10 years later worth twice that now.

You do realize the unless you have put zero dollars into this, that's not a great return? I mean ZERO! No taxes, no insurance, no repairs or maintenance, no lawn care...... That's about 7%, at a very high risk. Before considering the costs of carrying it for 10 years.

Unless you make large improvements rent out or live in a house, that's going to be true.

Property tax is low, house is not livable but still looks decent. I use the RV hook up behind it. The property cost me very little, no lawn here, did have to cut some salt cedar trees down do to storm damage.
Any property around here with one acre with elec., water, septic, nat.gas is worth 60k around here now.
Won't find anything like it now for what I paid for it 10 years ago.
The return on investment for me is location for The RV.
If there were more available years ago, I would of bought more of them, what I could afford.
In most cases, I doubt any one loses money on cheap property, even with old buildings on them, each situation is different though. Land with utilities does not depreciate here.

quote:

Originally posted by Hamden106:
"I think that may be a lot better for my boy to be so much closer. We can most likely get support staff to handle him and help him keep the place tidy through human services. "

Think real hard on what is best for the boy.
And confirm the support angle

Why didn’t I think of that?

quote:

Originally posted by mark123:
The amount owed on the house is $48585.34. It might be worth half that. Doesn't matter anyway as the auction was continued until 3-12-2025.

If what is owed is more than what it's worth...
You probably won't be bidding. The lender usually bids the loan amount.