Rent or own?

Question

I found a home for sale for $36,000, this is less than 1/2 of the appraised value. The owner lives about 6 hrs away and he recently had a heartattack and now doesn't want to deal with the home and property (about 1/4 of an acre). Also, he was renting it. He redid the master bath and his tenants really liked it so they asked if they could redo the entire house. he said yes so they knocked out every wall. The home is completley gutted. I see this as being a way to redo the home to my likings, and honestly I'm excited about it. I know the money and the work involved so please don't preach that to me. it is a 4 bedroom 2 bath, over 2000 sq ft. Within the past few yrs it has had new vinyle siding put on and the electrical has completley been upgraded. Now, other than the walls the porch needs redone. and I'll replace the windows (theyre the old fashioned narow kind). We have had the place checked over and there is nothing wrong. and about 1/4 of the insulation and drywall is there. so?

the question is is this really a good deal or am i getting myself in over my head? Is it worth the cheap price for the work thats ahead.

dreamy- we have considered renting it to begin with, however the work still needs done on it. I do not want to live in a home with no walls. So we would be putting our money into this rental. If we decided we did not want it we would be out that money and the work we'd put into the home. I was just curious what everyone thought of this. Like I said, I see it as being able to do what I want with the inside. I wanted to build but i did not want to get into the hassle of all of it. especially the expense atm it is more than I want. My fiance and I werent even plannin on buying a home for a few yrs. This just kind of fell into our laps. No, we do not have a realtor but I do know that this is a very very good price for a home even in this area.

dreamy- we have considered renting it to begin with, however the work still needs done on it. I do not want to live in a home with no walls. So we would be putting our money into this rental. If we decided we did not want it we would be out that money and the work we'd put into the home. I was just curious what everyone thought of this. Like I said, I see it as being able to do what I want with the inside. I wanted to build but i did not want to get into the hassle of all of it. especially the expense atm it is more than I want. My fiance and I werent even plannin on buying a home for a few yrs. This just kind of fell into our laps. No, we do not have a realtor but I do know that this is a very very good price for a home even in this area.

Answer 1

I am not sure the area in which you live but that sounds like a good deal for a home. If you can afford the payments and feel comfortable with the amount of work you are going to have to do then I say go for it. Do you have a Realtor you can ask for advice? They would know the market conditions better and be able to provide you a better insite on the home itself! Best of luck!

Answer 2

it is always better to own, you give your money away when you rent. You can fix it within reason and budget. Just get the house inspected by a professional inspector.

Get quotes from recommended contractors that are listed with Angie's list and/or the better business bureau. Get a fixed rate loan for 25-30 years and your payment will be super low..... don't do a variable or an adjustable, trust you want a fixed rate that is below 7 percent . have the owner pay ypour closing cost also.

Go ahead plus you get a tax write-off when you own. Go for it...

Answer 3

Don't worry about the "appraised value" you may be kidding yourself. Things are only worth what people will pay for it. If you are able to buy it at 36,000, there is no guarantee you can sell it for twice that.
Think of it in terms of how much it will cost you per month/year for a mortgage and have a contractor give you an estimate on the changes you would like to make. That will be its monetary cost to you. Again, assume you won't be able to sell it easily, will it inhibit any of your future plans? This is part of the cost.
If it meets you budget/expectations, then go for it.

Answer 4

Sounds like your already excited and planning the purchase.

You also seem to know what you gotta do.

Good Luck.

Answer 5

if you are not that sure, why dont you rent it for awhile first than you decide whether you really wan to own it. tell the owner whats you plan and see whether this works.

Answer 6

If you know what you're doing, go for it. If you don't, then pass it by.