What Would You Do? - Posted by Deanna
Posted by Deanna on July 24, 2001 at 13:50:44:
Hi all,
Yes I’m an annoying newbie, although my husband and I have lots of experience property management (thats how we lived for free for several years). I’ve been enjoying this site greatly. I was trying to decide which course to purchase and then I found what I think is a good deal on a house. I don’t want to jump on it before I know what I’m doing, yet I don’t want to lose it either.
Here’s the situation:
The house is government owned, was hard to find, and even the neighbors didn’t know its up for sale.
The area isn’t bad… its a small town in New England, but its kind of a hick town.
The house is a 3 bedroom ranch built in 1983, outside perfect, inside needs paint, carpet, kitchen floor and major appliances. Some door frames need repair… everything else in great condition.
We live in a mobile home and are planning to build our house next year (we bought this place for the land). We own the house outright and have no monthly payments. Our income is 65,000 a year.
I believe buying then selling this house will get us into the real estate business and give us a nice hunk of change to put in our bank account. My husband is afraid it won’t sell because of the low income area (average income is 33,000 year)
The price of this home is 40,000. Homes sold by real estate agents in the area go for 60,000 to 140,000. I only saw one ranch for 80,000.
The house is a funny location… quiet street, but on one side you see two icky cityish looking houses, on the other side you see a beautiful field and a nicely landscaped church. Its so hard to judge.
I’ve helped buy properties for other people and think I have a good eye… but its a lot more stressful doing this on our own.
Should I wait until I’m more educated, or take a risk? How much $ should I offer? Husband says there’s always deals out there and we should wait. I like it because of the min. amount of work to restore it. He’s always been the conserative one, and I’m the risk taker… its paid off so far… What would you all do?