I guess our Landlord is putting our place up for sale

[iNTeNSeBLue98]

It's two-unit rowhouse that he's owned since 1990. His kids are growing, getting busier with after-school activities and his job is taking up more of his time. He doesn't feel he has the devotion he once did in terms of maintenance and finding new tenants - we've been here 4 years (in July) and the upstairs tenant is here since the end of last year.

DH expressed an interest in buying, not that we are quite in the position to buy but it could be feasible with creative financing. I understand that housing rates within the city limits have increased recently (finally), but I think the asking price is too much.

I know the house next door, a single family home, was purchased four years ago for less than $60K. The agent (a friend of the landlord) wants to list at $69.9K. He's giving us the first chance at it before listing it. It's a 3-story home, and the neighborhood is pretty decent. I'm just not sure how I feel about the asking price.

 

[LoraJ]

with two units, you could get a renter in the other unit and that will help your mortgage payments a lot.

 

[summerrluvv]

69k for a house? I didn't even think they sold for that cheap these days! Someone posted a site not too long ago where you could look up how much your neighbors homes are worth. Something with a "z" I think. Maybe someone else knows.

 

[clh2]

wasn't that website "zillow.com"

 

[Disney Hot Mama]

The agent (a friend of the landlord) wants to list at $69.9K. He's giving us the first chance at it before listing it. It's a 3-story home, and the neighborhood is pretty decent. I'm just not sure how I feel about the asking price.

If there was any change I could purchase a two unit apartment/condo etc for less than $100,000 I woul jump at it..
Honestly if you can swing the payments without the renter go for it. We own rental property in CA and when our last tenant moved out we had lots of repairs to make. The house was vacant for two months duing this time so we lots lots of rent. We planned for this in advance so we could swing the payments bit for others it can financially drain you. I think this is a great opportunity for home ownership and you get someone else to help you make the payments too.

Now where we live you can't even get a single 2 bedroom condo for less than 300,000 + and single family houses are over 500,000. These are not mansions - they are single family houses 3 bedroom/2 bath on small lots 8000 sq ft and 40 years old! You are fortunate to be where you live.

Good luck.

 

[lil mermaid]

I agree with the others that the price doesn't seem like so much. I bet if you run the numbers, the monthly payment wouldn't be so much, especially if you consider the tax advantages of owning vs. renting. In addition, you would have the rent from the other half of the house!

Good luck, whatever you decide to do...

 

[MoniqueU]

I would jump on anything with a price that low but thats just me. We are faced with prices starting in the 600s and up around here. Snag that baby while you can.

 

[stemikger]

Where I come from $69.9 is not even a downpayment.

You can't touch a house around me for under $500,000. So $69.9 would be like living without a mortgage.

Even if you put nothing down and mortgaged The entire amount for 30 years. At 7% interest rate your payment will be under $500. Most of my friends pay more for that on their property taxes alone.

 

[WatchinCaptKangaroo]

I'm renting a 1bd condo that would sell for $250k if listed today. It's nothing special, just a converted apartment.

Jump on this!

 

[iNTeNSeBLue98]

Yes, $69.9 seems low to many and is more affordable than homes just a few miles away. This is an inner-city rowhouse, and some areas not many blocks from here do not have a pleasant reputation. We're kind of tucked away, on a 1-block long one-way street.

Small homes in the suburbs sell for about twice the price, if you're lucky you can find a tiny single or twin/townhouse for less. I'd have to find out how much the heating, water & sewer and trash would be in addition to our current rent, they're included now and I'll need to how much that would increase our monthly expenses and whether we could handle it without relying on tenant income. Plus there's taxes and home owner's insurance to consider. Taxes here are high, I'm certain it's over $2K for the year.

 

[inaminute]

Even in the not-so-nice neighborhoods around here, you can't touch a house for under $150,000. If you can afford the mortgage without the renter, then go for it.

 

[stemikger]

Taxes here are high, I'm certain it's over $2K for the year.

FYI - that is not high at all.

I know people that pay over $20,000 a year for property taxes.

 

[grlpwrd]

Certainly don't live beyond your means, but hope this can work out for you. It's a golden opportunity.

Of course, be sure to check for specifics like with the tax assessor's office or look online if they have a website for the assessments and any liens, etc. and also try to check and do research to see if your city has plans for rejuvenating the area. I know here in Hampton there is a city plan to rejuvenate the mall area and that could translate to a better standard of living, affecting housing costs, etc.

You could always "flip" the house, invest and make improvements, and then sell and move to something better. Think opportunity!

"Run the numbers" and GL in whatever you decide!

 

[pixiemomma]

If you like living there I would go for it.

 

[iNTeNSeBLue98]

FYI - that is not high at all.

I know people that pay over $20,000 a year for property taxes.

Yes, but for this home $2K would be about 3% of the selling price.

I'm looking for similar homes in our neighborhood, but don't see any. There are others for sale in other neighborhoods that are similarly priced, not sure if they are selling though.

 

[Alicnwondrln]

wow that is cheap
around here that would be a down payment
a housr here is over 400,000
it is crazy

 

[ducklite]

If you are dead serious about buying the house, I suggest you talk to a mortgage person first to see if you'll qualify. Look into an FHA loan, they require a smaller downpayment. Once you know you'll qualify, you can hire an attorney and draw up a contract of sale. The mortgage company will have an appraisal done to determine the value of the home. If it's not worth what you are paying for it, they won't lend you the money, and the seller will have to come down on the price.

I just took a quick look at listings in your area, and of course it depends on room count, s/f, condition of property, etc., but $69.9 doesn't seem too off the mark.

Anne

 

[Kycha]

ITA with Anne. Talk to a mortgage person and get pre-approved. Definitely look into an FHA or VA loan. When DH and I bought our first home, we had an FHA loan. Our total costs, including down payment and closing costs was aroung $4000.

 

[malibuconlee]

One other thing to think about is the tax consequences of someone paying YOU rent.

Also not sure how it works with a multi-unit home, but you may have lower taxes due to homsteading.

Good luck with whatever you decide.

 

[ducklite]

I just wanted to add that you can ususally use the security deposit as part of the down payment in a sale like this. It just has to be documented, but the mortgage company will explain what you need to do--very easy.

Anne