I have been watching foreclosures around me with great interest for the past year.
Long story short is I was looking for both personal and investment reasons.
4 bedroom, 2 bathroom home not to far from where I live was on the market for 67k about 4 months ago when I looked at it for a potential customer.
Turned out he was full of hot air and couldn’t even think about buying it.
I kept an eye on the house and recently found out it was in foreclosure.
I knew what I would be willing to give for the house. It is liveable but needs some love. There are things that I would like to do if I were to live in it.
Bank dropped their price to 32K a few weeks ago.
Last week the house was broken in to and the copper pipes in the basement were taken.
realtor called me and says, “Make the bank an offer, I know I told you they wouldn’t deal on the 32K, but they will now since someone broke in.”
My offer of $12,500.00 was accepted this morning. Financing is in place for me to have enough money and time to spend a month redoing the bathrooms and then move in. There is other money for the rest of the projects but we will move in when bathrooms are done.
October 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
Edited 1/26/2009 9:02 am by bstcrpntr
Replies
Man those are depression era prices. Congrats.
This whole real estate thing blows my mind. That house, even with the damage would go for at least 450k in our town.
Congratulations.
Mike
Small wheel turn by the fire and rod, big wheel turn by the grace of god.
We expect appraisel at 70-75K.
Instant equity!October 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
That's a beautiful looking place! Well done.
Good looking house for that price.
What is the neighborhood doing?
Are there as many forclosures as homeowners?
Are there neighbors on both sides of you that will be safe to live next too?
With only the plumbing missing I think you got a great deal the proof though is in an economic upturn will this neighborhood escalate or stagnate.
Can you sell the house for 75000 at the end of the renovation or will the rest of the neighborhood hold it down?
ANDYSZ2
WHY DO I HAVE TO EXPLAIN TO FRIENDS AND FAMILY THAT BEING A SOLE PROPRIETOR IS A REAL JOB?
REMODELER/PUNCHOUT SPECIALIST
There are only a few for sale in the area surronding this house.
I know the area well and most people have lived there for long time.
Both sides are people I know personally.
I don't think I could sell for at least five years to get 75K out of it. The neighborhood has always been good area to buy in. Just wait for Obama to fix everthing so I can sell.
October 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
After looking at the pictures I think you got a great deal.
Knowing the neighbors and the neighborhood makes it a no brainer.
Congratulations.
ANDYSZ2WHY DO I HAVE TO EXPLAIN TO FRIENDS AND FAMILY THAT BEING A SOLE PROPRIETOR IS A REAL JOB?
REMODELER/PUNCHOUT SPECIALIST
This whole real estate thing blows my mind. That house, even with the damage would go for at least 450k in our town.
Naw c'mon mike that would go for $400,000 tops!
To give perspective I've got lots of artist friends who barely have 2 nickels to rub toghether who are super exicted about getting a seriously clapped out old Vic for ~$100,000 in West Oakland. They are looking at REO's and man are they trashed. As soon as the bank takes possesion the crack heads yank out all the copper and wiring they can get! But heck a $100,000 Vic was probably $500,000 2 years ago....
Daniel Neumansky
Restoring our second Victorian home this time in Alamdea CA. Check out the blog http://www.chezneumansky.blogspot.com/
Oakland CA
Crazy Homeowner-Victorian Restorer
Outstanding!
Are you going to keep buying for rentals or is this a one-time deal for you to live in?
When the market was good, it drove housing prices up which drove my rental rates up. Now that the market had tanked, housing prices have stagnated or dropped, but the rentals have pretty much held their own.
I went semi-crazy for three years and bought, bought, bought. Had an unstable mess of paper for a few years until things settled and sorted themselves out. 15 years later, going out on that financial limb was the best financial decision my wife and I ever made. Scary at the time, but in the end it worked out.
We are making offers on a few other places as well right now for rentals.
We started looking at this one as an investment for a local investor who buys some of the nicer stuff.
I work with 3 different money guys and am very careful what I actually bid on for me. I had their blessings on this one.
Between the 3 guys I hunt for there is about 2million investment available. I will have to borrow on the other set I am bidding on.
the 12.5k was a cash offer, put it on the charge card this morning.
Went to bank and told them what I needed to pay off charge card and get my equity loan. I will carry about a 20k mortgage for 10 years. Should be paid in 5.October 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
$12.5K!!!!?????!!!
Man, where do you live????
(I wanna move there!)
http://www.grosshillrentals.com
that house here would bring about 250 k and be sold within a week
looked at a house near me last winter & they were asking 78 k it was so bad the water was running accross the hole for a basement , Even the rats wouldent live in it
it was sold within 2 weeks , near full price offer
we are situated just ouside the boundry of the capital of canada
the buyers had the house jacked up and a new poured foundation installed & are remoddeling it including a firnace , plumbing , bath & kitchen and it sits backing on a farm field
the client i looked at it for missed it by a day
it was the only house for sale under 100 k on mutipule listing on a area 1600 sq miles & it wasent fit to live in
lots here in the rural area start at 45 k , take em or leave em
Holy smokes, that's pocket change. Nice deal.
Scott.
Congrats. Replace the copper with pex and hope nobody takes the electrical.
We will go back with copper I think.
I'm not familure with pex.
Electric is on tomorrow and I will hook up an alarm system after I secure the broken doors. No more theiving.October 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
Twelve five?!
What the f#@%?!
I payed $105 Gs, 15 years ago for my foreclosure!
Weren't half the house.
Damn.....now you got me kickin' myself! LOL
Best of luck with it!
J. D. Reynolds
Home Improvements
That would be 80k, minimum, in our town, without pipes. Man.
Good for you. In my area in north Jersey, 20 miles from New York City that house would sell for $500.000
In my town you couldn't buy the pipes that are missing for $12,500!
Stunning, totally stunning! And the house looks great too<G>!!
Please don't tell me that it includes acreage...
What's wrong with just giving each hardworking, deserving person who filed a 2008 US tax form 100K? It would be much more instantaneous and a heck-of-alot cheaper than the current DC plan.
the total lot is 50x80
not much to mowOctober 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
That's great - congratulations on a real score! To put it in perspective - I too paid $12,500 for a home at one time. 524 sq ft, 1 br, 1 ba, single wall cabin on 1/3rd of an acre in the deep dark woods, up a steep dirt drive that most of the time was only walkable. And that was in 1975! Man, what a difference between CA and IL!
Very cute place from the outside - keep us posted on the progress!
I'll post some interior pics here shortly
October 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
Here are some interior shots.
The bathrooms will both be redone. The first floor bath will be turned into a master bath and a hall 1/2 bath. 2nd floor will be gutted and redone as well.
Lots of arched doors and openings in this little place.October 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
1st I have to say that it's a totally cool inside! Love the arches. It also has the same "feel" as my house, or close to it. Would this happen to be a SEARS house, you think? Plaster walls? I'm thinking mid to late 1920s or early 30s. WAY COOL!2nd Please please please keep that tub. Personal experience has found that it holds WAY more heat than a clawfoot and for a longer period of time. My downstairs tub had 3 porcelain cross-type handles (hot, cold & waste) along w/a needle nose spout (took FOREVER to fill the tub). When the plumbing got redone, my plumber was creative & used a chrome urinal holder to make sure the Kohler faucet would never move. The Kohler faucet that was purchased is the model that's normally used for a clawfoot. I can post a photo, if you like.My lot size is 50x112, so I've got abit more room.
What's wrong with just giving each hardworking, deserving person who filed a 2008 US tax form 100K? It would be much more instantaneous and a heck-of-alot cheaper than the current DC plan.
Awesome deal. Where is this?
I especially love the part where the bank was willing to make a deal after someone stole the copper pipes. I will have to think about that tactic next time I buy a house.
Not familiar with Pex? You should definetly get familiar with it. Much easier to work with, and a heck of a lot less expensive than copper. 100' roll of 1/2" goes for $50.
I am in southern Illinois. 60 miles east and a bit south of St. Louis, MO.
I have used cpvc for water supply. What would be wrong with that?October 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
Can't tell from the photos but the light fixtures alone look like they would fetch 12k in a Seattle or New York city shop. They look to be brass, why were they not taken? The woodwork has not even been painted Wow!Did you buy title insurance?
Had title search done, and have original deed.
Title insc is done as well.
LIght fixtures are brass. Woodwork is mostly original, there is some that has been reworked but matches nicely.October 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
Since you have the insurance you should be good. Job well done!
The house I grew up in (built in 1927) had the same chandelier/wall sconce combo. Your chandelier looks identical. The sconces in my old house were single, not double "candles," with "wax" dripping down them. Otherwise identical.Got to be the same manufacturer.AitchKay
pex is fast and easy and it can freeze and not burst... you can snake where you want far fewer joints... we did 20 units and 1000' s of joints... zero leaks first time...
pex is nice
btw... great deal... congrats...
p
thanks!
I will check it out.October 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
Andy Clifford had a thread on his own place, a bathroom he did with PEX for his first ever.
Don't know where to look for it, but it would give you some idea how easy it is to work with, and the price differential on this one job will buy you the tools.
Find what brand your local supplier carries and buy the matching tools. Even HD carries PEX in Utah.
I have a Wirsbo-Uphonor expander tool set, moved to a place that it's unknown. Not good to have the wrong tools.
Joe H
cpvc is brutally slow to install, just like copper. Pex with shark bite fittings installs brutally fast.
Pex must kick ####, cause I consider cpvc to be quick.
October 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
Yeah. Because it is flexible, you hardly need any joints. Shark Bite fittings are plug and play, no tools required.I replaced the main shut-off today on the house I am remodeling. The shut off at the street leaked, a lot. Good luck trying to solder copper while constantly getting hosed. I used 2 shark bite fittings and was done in 5 minutes.http://www.pexsupply.com/CategoryPre.asp?cID=588&brandid=Only drawback is that your local store may not be fully stocked with rolls of pex or even carry sharkbite fittings. I have to special order 100' rolls, and have been after my local supplier to expand their selection of SharkBite fittings.
Edited 1/28/2009 12:49 am ET by yojimbo2
I thought like you do, I just finished remodeling a rental home in Bullhead City, AZ and three weeks later a pipe broke inside and went unchecked for 6 days causing $8,000 in damage. I replaced the plumbing with Copper pipes because that is what I'm used to, Pex is the choice for plumbers in Arizona.
Then I volunteered one Saturday for Habitat For Humanity where I live in Orange County California and it happened they were doing plumbing that day and using pex, WOW it so easy. I learned to use the expander hand tool in 2 minutes, very easy. you can get the Wirsbo Pex tool kit on ebay for @$200-$250.
Where did you buy this house?
Edited 1/29/2009 5:06 am ET by JOB15310
Edited 1/29/2009 5:12 am ET by JOB15310
Im in Centralia, ILOctober 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
"Pex with shark bite fittings installs brutally fast."
I second (or I guess it's third, now) the vote for PEX. Personally, I'm a fan of the Uponor system. Definately a whole newer & better way, IMHO. However, if he's doing a lot (and it sounds like he is), there's no reason not to invest in the appropriate joint tools and use them instead of sharkbites. Cost would probably even out, and I'm still not sold on SBs for, e.g., in-wall connections. (Something about relying on a rubber O-ring for a "forever" install just doesn't sit right with me.)
Mike HennessyPittsburgh, PA
I think if you a full time plumber it makes sense to tool up. Using the joining tool takes some skill and experience from my understanding.I do plumbing as part of my remodeling business, it is one of the many trades I do. The thought of relying on one of my tool created joints in Pex, since I don't do plumbing continuously was enough to give me nightmares.As you are aware, with pex, you need way less joints, so the SB's to me make economic sense. Although they have not been around that long, SB's are warrantied for 30 years.
The thought of relying on one of my tool created joints in Pex, since I don't do plumbing continuously was enough to give me nightmares.
I have to think you have never seen PEX to make a statement like that.
Joe H
Just a little update on the house.
Shortly after closing the house I was in sold....it had been on the market for over a year with no offers.
I had 28 days to move and had no way to get other house ready because the real job got so busy.
We moved into one of the rental houses and started doing the full remodel of all bathrooms. Ended up removing a bunch of basement floor to find a sewer problem.
We should be moving in soon and have nothing to do once we are in.
October 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
Dude, YOU ROCK!!
That's an awesome deal. I just hope I can save up enough to take the opportunity while the prices are low. I guess you know in about 5 years that place will be in the mid $70s again. Congrats.
~ Ted W ~
Cheap Tools - BuildersTools.net
See my work - TedsCarpentry.com
This house is being looked at as a long term investment.
If in 5 years we cant sell it for what we want, we stay there.
We could be stuck in it, but thats fine, its a nice place.
Not the retirement house, but i'm only 34.
October 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
$12,500 wouldn't cover the property taxes here.
Jeff
I was offered $22K today by a guy who came buy that didn't know it had sold.
Told him to bring me proof of financing or cash.
Don't expect I will see him again, got the impression he wants a CFD and himself to do the work. I think that was a losing idea.October 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
Excellent deal dude!!!
BTW, how much did you get for the copper :-), Just kidding.
If'n i'da know'd, i woulda stole it.
Would of made it reuseable though!
hahahahahaOctober 17th, 2009
Jeremy and Lisa
Was there ever any doubt?
Put that house in my neighborhood and list it at $1, 250,000.00 for a quick sale!
Don't bother fixing the plumbing..