iamshack Posted June 14, 2011 Share Posted June 14, 2011 So I am waiting on a possible job offer out of state that I am told I should be hearing about one way or the other around June 20ish-th. I've decided if I don't take the offer, I am going to look into buying something in our horrendous real estate market here in Las Vegas. We have a ton of foreclosures on the market, many of which have been left in varying states of disarray by their owners, and/or poached of things like pool equipment, AC units, appliances, etc, by vandals, professional thieves, and other assorted scum. As a result, there are properties on the market that lenders will only lend on if you take a "renovation" loan out or just buy with cash. I am not a cash buyer. I recently stumbled upon a property that fits my criteria: 1) cheap; 2) solid location in older neighborhood; 3) large lot (relative to Las Vegas, anyway); and 4) has an inground pool (I refuse to live in the middle of the desert without a pool). So basically how this works is the home gets appraised by a HUD contractor in an "as is" state and in a "as completed" state. The as completed state includes all the work necessary to bring the home back into safety code and characterize it as "habitable." It also includes regular renovations such as updating kitchens, resurfacing floors, painting, purchase of new pool equipment, etc. The difference between the purchase price and the as completed price is the size of the renovation part of the loan. At closing, this portion of the loan goes into escrow, to be drawn upon as contractors complete work. Has anyone ever done one of these or worked on a project such as this? Quote Link to comment Share on other sites More sharing options...
NorthSideSox72 Posted June 15, 2011 Share Posted June 15, 2011 QUOTE (iamshack @ Jun 14, 2011 -> 06:16 PM) So I am waiting on a possible job offer out of state that I am told I should be hearing about one way or the other around June 20ish-th. I've decided if I don't take the offer, I am going to look into buying something in our horrendous real estate market here in Las Vegas. We have a ton of foreclosures on the market, many of which have been left in varying states of disarray by their owners, and/or poached of things like pool equipment, AC units, appliances, etc, by vandals, professional thieves, and other assorted scum. As a result, there are properties on the market that lenders will only lend on if you take a "renovation" loan out or just buy with cash. I am not a cash buyer. I recently stumbled upon a property that fits my criteria: 1) cheap; 2) solid location in older neighborhood; 3) large lot (relative to Las Vegas, anyway); and 4) has an inground pool (I refuse to live in the middle of the desert without a pool). So basically how this works is the home gets appraised by a HUD contractor in an "as is" state and in a "as completed" state. The as completed state includes all the work necessary to bring the home back into safety code and characterize it as "habitable." It also includes regular renovations such as updating kitchens, resurfacing floors, painting, purchase of new pool equipment, etc. The difference between the purchase price and the as completed price is the size of the renovation part of the loan. At closing, this portion of the loan goes into escrow, to be drawn upon as contractors complete work. Has anyone ever done one of these or worked on a project such as this? We bought a house last November that was a foreclosure, had been empty a while, wasn't taken care of, etc. Paid a ridiculously low price, but knew we'd need to put some money into it. But since the home was appraised for almost 100k more than we were paying (mortgage company didn't believe it at first, had a different appraiser come out, who said the same thing), we had plenty of headroom to do the work. In our case, we bought the home with a traditional mortgage (with a decent sized down payment), then took out an equity line for any work on the house that was beyond what we could afford 100% out of pocket. WE did a bunch of work during the winter, moved in in January, and are doing other things one by one as the year goes on. Rates on equity lines are relatively cheap right now, almost as cheap as standard mortgages. So you may want to consider doing it that way, if its possible. Housing market sucks, but there are some ridiculously cheap prices right now too, and low mortgage rates. As long as you aren't thinking short-term flip (which is stupid nowadays), and you have good enough credit to get a mortgage, now is a great time to buy. Quote Link to comment Share on other sites More sharing options...
iamshack Posted June 15, 2011 Author Share Posted June 15, 2011 QUOTE (NorthSideSox72 @ Jun 15, 2011 -> 07:22 AM) We bought a house last November that was a foreclosure, had been empty a while, wasn't taken care of, etc. Paid a ridiculously low price, but knew we'd need to put some money into it. But since the home was appraised for almost 100k more than we were paying (mortgage company didn't believe it at first, had a different appraiser come out, who said the same thing), we had plenty of headroom to do the work. In our case, we bought the home with a traditional mortgage (with a decent sized down payment), then took out an equity line for any work on the house that was beyond what we could afford 100% out of pocket. WE did a bunch of work during the winter, moved in in January, and are doing other things one by one as the year goes on. Rates on equity lines are relatively cheap right now, almost as cheap as standard mortgages. So you may want to consider doing it that way, if its possible. Housing market sucks, but there are some ridiculously cheap prices right now too, and low mortgage rates. As long as you aren't thinking short-term flip (which is stupid nowadays), and you have good enough credit to get a mortgage, now is a great time to buy. Thanks Matt. Problem out here is the homes just aren't appraising for much. All the homes that are appraised well-above list are being grabbed by investors the second they hit the market. It makes it even more difficult since they are paying cash. So I'm just not sure that the banks are going to want to lend on a home equity loan in this market without having been in the house for a while, however, it sure would be easier to use funding from a home equity loan than be involved in a HUD renovation loan. Lots of inspections/paperwork/complicated draw system. But yeah, this house I am looking at is on a decent sized lot, with a pool, 3 bedrooms and 2 baths for dirt cheap. Let's just say it would be cheaper for my mortgage, taxes, pmi, etc., than my current rent is, by about 25%. Just crazy how cheap some of the homes out here are. I just need to be sure I am committed to staying here for a few years. But if I do buy it cheaply enough, the rental market here is fairly strong. So I feel that I could easily rent it. Quote Link to comment Share on other sites More sharing options...
iamshack Posted June 21, 2011 Author Share Posted June 21, 2011 (edited) So in my home search I have been trying to be as thorough as I can possibly be...part of me wants a fixer upper...part of me wants something older, but already fixed up for me....part of me wants to stay near the Strip...part of me wants to go live in the mountains (yes, there are mountains within 40 minutes or so of the Strip, where you can experience all 4 seasons). I have found options for each desire, and am following through on them... And then last night at work, while just searching through available lots, I found some land out in the middle of nowhere...where there are wild horses roaming about, no utility hookups, and just miles and miles of clean air, sunlight, and stars to drink a beer and smoke a cigar underneath....and I got to thinking... How amazing would it be to live off the grid in a place like that? To either buy an existing home outfitted with solar panels and backup generators (yes, there are some affordable ones)...or to actually buy a prefab home and outfit it with everything necessary to live off the grid? The thought of it is making me dream of the possibilities...the hardest part would be getting the financing...although there are companies that specialize in these types of loans...and then of course getting the septic tank put in and dealing with all the permitting...but I think it could be done...a very small space mind you...but it could be done for $200k or so.... Anyways, sorry for wasting your time...just a dream I am having right now... Edited June 21, 2011 by iamshack Quote Link to comment Share on other sites More sharing options...
Balta1701 Posted June 21, 2011 Share Posted June 21, 2011 The real problem with that in the desert is food/water. Especially in a fuel constrained environment, you really don't want to have to drive an hour for groceries every week or two. Quote Link to comment Share on other sites More sharing options...
iamshack Posted June 21, 2011 Author Share Posted June 21, 2011 (edited) QUOTE (Balta1701 @ Jun 21, 2011 -> 07:22 AM) The real problem with that in the desert is food/water. Especially in a fuel constrained environment, you really don't want to have to drive an hour for groceries every week or two. Oh it's not an hour from fuel and water...there is a town called Mt Charleston that has basic food and water you can get...and I could get most of the stuff I would need when I come into Vegas for work anyways... But yeah, I'd need to get figure out a plan for food storage if I was in a smaller space, that's for sure... Edited June 21, 2011 by iamshack Quote Link to comment Share on other sites More sharing options...
Balta1701 Posted June 21, 2011 Share Posted June 21, 2011 QUOTE (iamshack @ Jun 21, 2011 -> 09:24 AM) Oh it's not an hour from fuel and water...there is a town called Mt Charleston that has basic food and water you can get...and I could get most of the stuff I would need when I come into Vegas for work anyways... But yeah, I'd need to get figure out a plan for food storage if I was in a smaller space, that's for sure... If you can make it work, and 5 years down the road paying $8 a gallon for gasoline doesn't bankrupt you, then yeah, that'd be pretty darn nice. I'm just imagining how detailed my maps would be of the area after 10 years living off somewhere... Quote Link to comment Share on other sites More sharing options...
iamshack Posted June 21, 2011 Author Share Posted June 21, 2011 QUOTE (Balta1701 @ Jun 21, 2011 -> 08:27 AM) If you can make it work, and 5 years down the road paying $8 a gallon for gasoline doesn't bankrupt you, then yeah, that'd be pretty darn nice. I'm just imagining how detailed my maps would be of the area after 10 years living off somewhere... Yeah, the distance from work is the big issue...I suppose a hybrid vehicle or small mpg vehicle would be in order... Would my utility savings save me from my fuel problem? Perhaps I could charge a Leaf from my solar panels, Balta... Quote Link to comment Share on other sites More sharing options...
Balta1701 Posted June 21, 2011 Share Posted June 21, 2011 QUOTE (iamshack @ Jun 21, 2011 -> 09:36 AM) Yeah, the distance from work is the big issue...I suppose a hybrid vehicle or small mpg vehicle would be in order... Would my utility savings save me from my fuel problem? Perhaps I could charge a Leaf from my solar panels, Balta... No, utility savings on their own wouldn't make up for the gas prices of having to drive 30+ miles to get into a city on a daily basis. Gas prices are on a much more exponential trend than utility prices and should probably stay that way for the next few decades. But yes, charging a leaf from solar panels would work if you have a less than 40 mile drive per day and you could hook into a charger. Quote Link to comment Share on other sites More sharing options...
iamshack Posted June 21, 2011 Author Share Posted June 21, 2011 QUOTE (Balta1701 @ Jun 21, 2011 -> 08:42 AM) No, utility savings on their own wouldn't make up for the gas prices of having to drive 30+ miles to get into a city on a daily basis. Gas prices are on a much more exponential trend than utility prices and should probably stay that way for the next few decades. But yes, charging a leaf from solar panels would work if you have a less than 40 mile drive per day and you could hook into a charger. Well, that would be the key...I wouldn't drive into Vegas every day for work...in fact, I'd probably only do it a few times a month...as I'd stay with friends when working multiple days in a row, etc. Obviously quite the fantasy, but it could certainly be done. A co-worker of mine makes a similar drive into work and very much thinks it's worth it to live up in the mountains... Quote Link to comment Share on other sites More sharing options...
southsider2k5 Posted June 21, 2011 Share Posted June 21, 2011 QUOTE (Balta1701 @ Jun 21, 2011 -> 08:42 AM) No, utility savings on their own wouldn't make up for the gas prices of having to drive 30+ miles to get into a city on a daily basis. Gas prices are on a much more exponential trend than utility prices and should probably stay that way for the next few decades. But yes, charging a leaf from solar panels would work if you have a less than 40 mile drive per day and you could hook into a charger. Until all of the coal plants start going off of the grid in the next few years... Quote Link to comment Share on other sites More sharing options...
Balta1701 Posted June 21, 2011 Share Posted June 21, 2011 QUOTE (southsider2k5 @ Jun 21, 2011 -> 10:05 AM) Until all of the coal plants start going off of the grid in the next few years... If that happens, it's because gas/solar/cleaner coal plants are coming on line to replace them. You could have said the same thing as a scare tactic any year for the past 25 years. Quote Link to comment Share on other sites More sharing options...
Jenksismyhero Posted June 21, 2011 Share Posted June 21, 2011 QUOTE (iamshack @ Jun 21, 2011 -> 08:19 AM) So in my home search I have been trying to be as thorough as I can possibly be...part of me wants a fixer upper...part of me wants something older, but already fixed up for me....part of me wants to stay near the Strip...part of me wants to go live in the mountains (yes, there are mountains within 40 minutes or so of the Strip, where you can experience all 4 seasons). I have found options for each desire, and am following through on them... And then last night at work, while just searching through available lots, I found some land out in the middle of nowhere...where there are wild horses roaming about, no utility hookups, and just miles and miles of clean air, sunlight, and stars to drink a beer and smoke a cigar underneath....and I got to thinking... How amazing would it be to live off the grid in a place like that? To either buy an existing home outfitted with solar panels and backup generators (yes, there are some affordable ones)...or to actually buy a prefab home and outfit it with everything necessary to live off the grid? The thought of it is making me dream of the possibilities...the hardest part would be getting the financing...although there are companies that specialize in these types of loans...and then of course getting the septic tank put in and dealing with all the permitting...but I think it could be done...a very small space mind you...but it could be done for $200k or so.... Anyways, sorry for wasting your time...just a dream I am having right now... I grew up with like 10 acres of land in "BFE" (central Illinois) with forests, some open land, and even some streams and a small river. Then I moved to the city, and now i'm in the burbs. If I could, I would do what you are dreaming of doing in a heartbeat. I'm so tired of pavement, traffic, people that don't understand the rules of walking on sidewalks are the same as the rules of the road (move to the right unless you're going to pass. it's not a hard concept people!) etc. Hopefully one day I can. But unfortunately my wife and i picked careers that essentially require us to be near a metro area. Quote Link to comment Share on other sites More sharing options...
NorthSideSox72 Posted June 21, 2011 Share Posted June 21, 2011 QUOTE (iamshack @ Jun 21, 2011 -> 08:19 AM) So in my home search I have been trying to be as thorough as I can possibly be...part of me wants a fixer upper...part of me wants something older, but already fixed up for me....part of me wants to stay near the Strip...part of me wants to go live in the mountains (yes, there are mountains within 40 minutes or so of the Strip, where you can experience all 4 seasons). I have found options for each desire, and am following through on them... And then last night at work, while just searching through available lots, I found some land out in the middle of nowhere...where there are wild horses roaming about, no utility hookups, and just miles and miles of clean air, sunlight, and stars to drink a beer and smoke a cigar underneath....and I got to thinking... How amazing would it be to live off the grid in a place like that? To either buy an existing home outfitted with solar panels and backup generators (yes, there are some affordable ones)...or to actually buy a prefab home and outfit it with everything necessary to live off the grid? The thought of it is making me dream of the possibilities...the hardest part would be getting the financing...although there are companies that specialize in these types of loans...and then of course getting the septic tank put in and dealing with all the permitting...but I think it could be done...a very small space mind you...but it could be done for $200k or so.... Anyways, sorry for wasting your time...just a dream I am having right now... Funny you should mention this, I actually bought some land years ago that's BFE - 24 acres in the mountains, fantastic views, mostly forested, cheap as hell to buy, really low taxes... but right now we're just sitting on it. Schools there are pretty bad and very few other kids nearby, so raising kids on it would be a disadvantage. But it has great solar potential to be pretty off-grid if we wanted to, and we might build a part time cabin someday, or retire out there or something. Land is dirt cheap right now. I've explored what financing exists for building on land like that, though we're not doing anything right now. PM me if you want to talk shop about doing that sort of thing. Quote Link to comment Share on other sites More sharing options...
Steve9347 Posted June 21, 2011 Share Posted June 21, 2011 I'm so glad I bought a home in 2007. All that lost-house value is awesome. Quote Link to comment Share on other sites More sharing options...
iamshack Posted June 21, 2011 Author Share Posted June 21, 2011 QUOTE (NorthSideSox72 @ Jun 21, 2011 -> 02:52 PM) Funny you should mention this, I actually bought some land years ago that's BFE - 24 acres in the mountains, fantastic views, mostly forested, cheap as hell to buy, really low taxes... but right now we're just sitting on it. Schools there are pretty bad and very few other kids nearby, so raising kids on it would be a disadvantage. But it has great solar potential to be pretty off-grid if we wanted to, and we might build a part time cabin someday, or retire out there or something. Land is dirt cheap right now. I've explored what financing exists for building on land like that, though we're not doing anything right now. PM me if you want to talk shop about doing that sort of thing. The area I am looking at is called Cold Creek, NV. Looking at both properties on site as well as the possibility of buying something prefab by Blu Homes or Alchemy Architects. There are companies that specialize in full off the grid solar systems with batteries and backup generators. Would have to get a septic put in, but water is available. Again, the financing is the issue....I applied with a company called Land Home that specializes in working with the prefab home companies. Going to see how far I can get before I hit a major roadblock. Quote Link to comment Share on other sites More sharing options...
Y2HH Posted June 21, 2011 Share Posted June 21, 2011 QUOTE (Steve9347 @ Jun 21, 2011 -> 03:56 PM) I'm so glad I bought a home in 2007. All that lost-house value is awesome. It's only lost if you sell today. People said the same things about all their stocks/401k's in 2007...then they panicked, sold them, and watched those same stocks skyrocket right back to where they were in a mere 2-3 years. Suckers panic under pressure. Winners hold steady and recognize that if it does [the system] completely collapse, it won't matter when or if you sold. The only difference will be in having no worthless paper, and having wheelbarrows full of it...which nobody will want a cent of. I may say a lot of negative things...but I have faith in this country. Mostly because every generation previous to ours said the SAME exact things I hear people say today...that the end is near...and everything is going to collapse. They then follow that brilliant outlook up with buy gold. Someone needs to notify these gold buyers that in a modern depression, food is worth more than gold. And a starving man would part with 5 pounds of yellow metal in exchange for a single meal. Or, the guy with the food can just wait until you stave to death in a mere few weeks, and take said worthless yellow metal for nothing. How's that for a positive outlook? Quote Link to comment Share on other sites More sharing options...
Balta1701 Posted June 21, 2011 Share Posted June 21, 2011 QUOTE (Y2HH @ Jun 21, 2011 -> 06:11 PM) Someone needs to notify these gold buyers that in a modern depression, food is worth more than gold. And a starving man would part with 5 pounds of yellow metal in exchange for a single meal. Or, the guy with the food can just wait until you stave to death in a mere few weeks, and take said worthless yellow metal for nothing. How's that for a positive outlook? Quote Link to comment Share on other sites More sharing options...
iamshack Posted June 21, 2011 Author Share Posted June 21, 2011 Meeting with a agent to see two properties and some acreage tomorrow morning. Should be fun regardless of whether anything comes of it or not. Quote Link to comment Share on other sites More sharing options...
IlliniKrush Posted June 22, 2011 Share Posted June 22, 2011 QUOTE (Steve9347 @ Jun 21, 2011 -> 03:56 PM) I'm so glad I bought a home in 2007. All that lost-house value is awesome. It's only lost if you're moving out from it anytime soon. Quote Link to comment Share on other sites More sharing options...
Soxbadger Posted June 22, 2011 Share Posted June 22, 2011 And thats not even adding equity into the equation versus paying rent and getting no equity. Quote Link to comment Share on other sites More sharing options...
iamshack Posted June 22, 2011 Author Share Posted June 22, 2011 Went out to Cold Creek this morning. What an incredible area...200 residents, 1/3 of which are full-time. Gorgeous setting. Looked at a home that has a complete solar setup already with batteries and a generator. On a half acre of land, but right up next to a National Forest Preserve. Wild horses and elk walk into the neighborhood in the winter. Time to get the bank on the phone... Quote Link to comment Share on other sites More sharing options...
Steve9347 Posted June 23, 2011 Share Posted June 23, 2011 QUOTE (Y2HH @ Jun 21, 2011 -> 05:11 PM) Winners hold steady and recognize that if it does [the system] completely collapse, it won't matter when or if you sold. *Winners go home and f*** the prom queen. Quote Link to comment Share on other sites More sharing options...
NorthSideSox72 Posted June 23, 2011 Share Posted June 23, 2011 QUOTE (iamshack @ Jun 22, 2011 -> 04:57 PM) Went out to Cold Creek this morning. What an incredible area...200 residents, 1/3 of which are full-time. Gorgeous setting. Looked at a home that has a complete solar setup already with batteries and a generator. On a half acre of land, but right up next to a National Forest Preserve. Wild horses and elk walk into the neighborhood in the winter. Time to get the bank on the phone... Half acre? That's really not very big for BFE land, a typical house lot in the far flung suburbs in Chicago is bigger than that. How far out from contiguous urbanity is the property? Quote Link to comment Share on other sites More sharing options...
iamshack Posted June 23, 2011 Author Share Posted June 23, 2011 QUOTE (NorthSideSox72 @ Jun 23, 2011 -> 08:36 AM) Half acre? That's really not very big for BFE land, a typical house lot in the far flung suburbs in Chicago is bigger than that. How far out from contiguous urbanity is the property? Well there are subdivided plots and then there is acreage for sale. The subdivided plots are generally between a half-acre and three-quarter acres. Them the larger parcels, which are outside the subdivision, are more like 2 acre parcels. The reason for the smaller parcels is because this is all located right up next to the Toiyabe National Forest lands, which is some 6.3 million acres. The one property I looked at actually backs up right into the National Forest land. For me, I don't really care about the acreage much since I can just access the National Forest lands if I want to hike or camp or whatever. It's about 25 miles northwest of the edge of northwest Vegas, about 45 miles from central Las Vegas. Quote Link to comment Share on other sites More sharing options...
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