Im buying a house? please someone with experience answer my questions read further?

Question

Im buying a house that cost 54,000 its not so much, but its in a bad neighborhood. The payments would be about 700-800 a month. Im planning on fixing it, cause it needs fixing, and then either selling it or renting it. Anyone with experience? is it worth it? or should i get a better house? A house that cost more? with less work? please help

Answer 1

If your payments are 700 you are paying a very high interest rate. Look for a house with a better rate and is already fixed up. It will cost you a little more per month but you will have more working capital. Doing the repairs yourself will take a lot of cash that won't be part of the loan..

Answer 2

If you have the time and of course the money to fix this house up. Nothing major, maybe new flooring (carpet,tile,etc..) new plumbing fixtures, light fixtures. Things like this make a huge difference when you want to turn around and sell it. 54k is very cheap for a house in today's market. Although it is a buyer's market, you can easily buy this house and do less than 10k dollars worth of repairs/fixes to the house and then turn around and put in back on the market for 99-110k in less than 2 months time. That's anywhere in the neighborhood of 50-60k in 60 days. So, I'd say heck yes. Do it. That is, if you have the time and money.

Answer 3

Too many variables. To be a good investment, the purchase price, including costs + all expenses, including selling costs and paying yourself for any work you did, must end up less than the value when you are done. For example:

Buy at 54K
Closing costs, repair costs (do not forget to pay yourself) and re-selling costs AND PAYMENTS YOU MAKE DURING PROCESS) say 25K

Total in 79K

If you cannot make 10% on it in a short time, or 8K in your pocket...why take the risk.

One other thought...what kind of pathetic financing would make a 54K home have payments of 7-800/month? That is absurd.

Answer 4

The number one reason for house appreciation and desirability if Location. If this is in a bad neighborhood, fixing it up will not necessarily increase its value, and the rent you would receive would probably not cover your costs, then also take in the type of renters that live in bad neighborhoods, do you really think your place will be cared for? It is not the cost but again the location

Answer 5

If it is in a bad neighbourhood, i would not go for it. because i think even if u spend a lot of money on it, u won;t be able to change the neighbours. In future u will find it difficult to sell , looking at the market trend. A cheaper house has reasons for its low cost and same way A house that costs more sure has reasons for its high costs. Think 100 times before making investments.

Answer 6

once again ACE is right. homes in bad neighborhoods generally stay at low retail no matter what you do. you can invest that same money into a property that will give you more bang for your buck at time of selling. plus market is really bad. might have trouble selling property if in really bad neighborhood. unless you see major change in that area (are developers building condos nearby, any shopping malls opening up near by, new home constructions worth more money, etc..)in the next 5-7 years not worth it. if you dont see the area drastically improving soon dont waste your time.

Answer 7

If that's what you can afford now, then you're better off sticking with a house that wont go into forclosure because you can't make your payments. If you plan to fix it up, don't go overboard and make it way nicer than your neighbor's homes because you wont get that money back. There are lots of inexpensive ways to improve your home's looks without spending a ton of money. Try to do as much of the work yourself as you can. That's the fun part about buying your own home.

Answer 8

Well I have a German Shepherd and Terrier Mix who Sit, Give PAW, Lay, Are potty trained and Smart. Then I have The Pomeranian (Which is Dumb as Hell) it's the stupidest dog i've ever had, she hasn't learned crap and barks at anything. She's still not potty-trained after months of trying! my other 2 dogs learned in 3 weeks!!! I'm not saying all poms are that way, but this is my experience with mine. The only thing mine has is the cute looks, but Brain? (none)

Answer 9

Too bad it's in a bad neighborhood. Would've been a great deal to make profit money off of. Unfortunately, these days people look at the neighborhood, schools, crime rate and so forth. My advice to you would be, to keep looking.

Answer 10

The old saying is,you should buy the worst house in the best neighborhood! Just remember,location,location,location!