[audio-pals] Re: Older Houses

  • From: Thomas McMahan <thomas.mcmahan@xxxxxxx>
  • To: audio-pals@xxxxxxxxxxxxx
  • Date: Thu, 12 Mar 2015 13:08:04 -0500

Why didn’t you tell us you lived in Chicago?  Sounds very much the same as it 
is up there.  

Hey Josh, I just thought of another option.  There are lots of houses available 
in Detroit.  Heck you can probably buy yourself a school building there.  That 
would be a big house for you.  Utilities might be a little high though.  

> On Mar 12, 2015, at 11:57 AM, BethAnn LaPresta (Redacted sender 
> "bela28_02@xxxxxxxxx" for DMARC) <dmarc-noreply@xxxxxxxxxxxxx> wrote:
> 
> My house is in a neighborhood that is definitely considered "the hood".  I 
> refinanced in January at $130K and my payment is about $800/mo.  My property 
> taxes are spendy though, over $2K per year, so that adds almost $200/mo right 
> there.  They tossed 26 of my cottage style single detached homes on little 
> 3900 sq ft. lots, so our cul-de-sac is very busy with all of us stacked up 
> right against each other.  But, living out west, things cost much more, it is 
> shocking actually.
>  
> I could've purchased a 100 yr. old home where Heather lives in Ohio with 
> about the same size lot for $60K, just to give perspective.  The guy who got 
> himself into trouble with my house paid $263K for it in 2006 when real estate 
> prices were obscene out here.  Because he was short selling the home, I was 
> able to get it for just $110K in 2011.  A house on my street has just gone up 
> for sale and they're asking $200K for 3 bedrooms (and they are tiny), 2 baths 
> with one car detached garage.  So, if I need to sell, I should still be able 
> to make a little.
>  
> Thought I should explain my monthly payment since I was saying I didn't think 
> the $600/mo. seemed like enough.
> 
> From: Thomas McMahan <shadowmonstrosity@xxxxxxx>
> To: audio-pals@xxxxxxxxxxxxx 
> Sent: Thursday, March 12, 2015 9:23 AM
> Subject: [audio-pals] Re: Older Houses
> 
> Oh mine btw was $162, because we’re cheap!  *lol*.  Then it went down to $150 
> then down to $128, but again we’re cheap and live in a piece of s— house, but 
> as Pat used to say, “it’s our piece of S— *lol*.  
> 
> 
>> On Mar 12, 2015, at 10:12 AM, BethAnn LaPresta (Redacted sender 
>> "bela28_02@xxxxxxxxx <mailto:bela28_02@xxxxxxxxx>" for DMARC) 
>> <dmarc-noreply@xxxxxxxxxxxxx <mailto:dmarc-noreply@xxxxxxxxxxxxx>> wrote:
>> 
>> I am not sure that $600/month figure is accurate.  I just refinanced at 
>> 3.25% and my payment is $800/mo. (this does include property taxes and 
>> insurance though).  
>> 
>> From: Josh <lawdog911@xxxxxxxxxxx <mailto:lawdog911@xxxxxxxxxxx>>
>> To: audio-pals@xxxxxxxxxxxxx <mailto:audio-pals@xxxxxxxxxxxxx> 
>> Sent: Thursday, March 12, 2015 4:44 AM
>> Subject: [audio-pals] Re: Older Houses
>> 
>> Amanda did some figuring using a mortgage calculator online and the 120,000 
>> house was going to run us roughly 600 something a month for I want to again 
>> say it was 1700 sq. ft. We currently live in a 1100 sq. ft. apartment and 
>> pay 714.00 a month. So, given the differences there and the fact that we 
>> have nothing to show for it at the end of the year is a little much in my 
>> book. So, if the 120,000 was going to be 600 something it would go to reason 
>> that the 112,000 would be less money than that. Now, as far as utilities go, 
>> Knoxville Utilitiy Board (KUB) will give us high and low figures for the 
>> last 12 months. The last 12 months is a good thing providing there has been 
>> someone living in the house, but if the house has sat empty then the numbers 
>> that KUB quotes are not in the least bit accurate. I really like the idea of 
>> rolling insurance and taxes into the monthly payment so that way at the end 
>> of the year or whenever land taxes are due we are not hit with a big lump 
>> sum of money to pay. Sure it would be nice to think that I could just put 
>> that money back each month and not touch it, but the minute something needs 
>> to be paid for guess where the land tax money goes that was being put bac 
>> into an account. If it is figured into the monthly payment then for the most 
>> part the majority of it will be paid throughout the year. The thing that 
>> really sucks is that stinking PMI payment each month.   
>>  
>> 
>> 
>> From: audio-pals-bounce@xxxxxxxxxxxxx 
>> <mailto:audio-pals-bounce@xxxxxxxxxxxxx> 
>> [mailto:audio-pals-bounce@xxxxxxxxxxxxx 
>> <mailto:audio-pals-bounce@xxxxxxxxxxxxx>] On Behalf Of Thomas McMahan
>> Sent: Thursday, March 12, 2015 4:58 AM
>> To: audio-pals@xxxxxxxxxxxxx <mailto:audio-pals@xxxxxxxxxxxxx>
>> Subject: [audio-pals] Re: Older Houses
>>  
>> I accidentally hit the send before cleaning up that mail darn it.  
>>  
>> Here’s another little exercise to work on.  Lets say you guys decide to go 
>> for this house.  You should have a ballpark of the monthly payment.  Sit 
>> down and plot out a budget around it on one paper, as well as a list of 
>> possible repairs to do on another list and their costs.  Yes a house payment 
>> can be cheaper than rent, but their are other realities such as the taxes, 
>> and insurance.  Are you going to escrow your insuranc and tax payments into 
>> your house payment?  Most people do that and it usually works out well until 
>> they assess your house taxes up and then you have to make up the short fall. 
>>  Of course if they assess them downward you get a chunk of money back in the 
>> mail like my sister-in-law has done the past two years.  I didn’t escro my 
>> other payments.  I deal with insurance as I would any other utility, and we 
>> would do our taxes on our own.  Because of that I now pay my insurance once 
>> a year and it’s cheaper, and once the house was paid for there was less 
>> entanglement with the bank.  I even removed the automatic withdraw for house 
>> payment because they double dipped us a couple of different months, and 
>> didn’t have a very good explanation as to why.  So it put us into over draw 
>> land, which isn’t a place you want to be.  They did the same to my 
>> sis-in-law too and she went in and practically threw a fit because she 
>> wasn’t working at the time and didn’t have income yet.  They refunded her 
>> money on that one, but as she asked them, “now how am I supposed to pay the 
>> rest of my bills?  You think you guys are my only bill to pay?”  Banks and 
>> their computers can be sloppy sometimes.  
>>  
>> Now when you do your budget here’s another game to play which may be 
>> beneficial.  Can you run your whole budget on one income?  Everybody that 
>> lives as a couple should do this whether renting or paying for a house.  
>> Most of us find we can’t, but it is a nice goal.  The guy we had going along 
>> with us to check out houses etc and sort of pointed and guided us along 
>> through the process gave us that little bit of wisdom.  As he said, what 
>> happens if Pat loses her job and can’t get one very fast?  Can you live on 
>> just your income alone, because if you can get to that point, then you can 
>> start paying extra against your house on it’s principle and have more paid 
>> off faster which is good for the credit rating, but if you decide to move in 
>> 20 years you are carrying less of a load thus will get more money back to 
>> leverage against your next place should you decide to do that.  Or you can 
>> both pay some extra on house and car, then put the rest in the bank against 
>> major repairs which are going to come even if you buy a house that was built 
>> today, in 30 years you will have to had to replace things, they just don’t 
>> build stuff that good anymore and sometimes that includes homes btw.  
>>  
>> Lots of decisions, but at least it looks like you guys aren’t just jumping 
>> right and grabbing what shines in front of you which is good.  
>>  
>> Btw, I don’t think our budget is currently within the lowest income level of 
>> the house here at this time which would be Patti’s income, although it’s not 
>> way above that amount.  It is a good goal to work for actually, so we will 
>> be able to start seriously working on this place.  Get a lot of little stuff 
>> done over time, then do a loan down the road and fix the major stuff such as 
>> re doing the roof etc.  I don’t think I am going to lift the house and work 
>> on foundation, but it would be nice to do actually.  
>>  
>> But it’s a good exercise to do.  I would run it on your income Josh because 
>> it is likely to always be there and Amanda’s income is the variable one, it 
>> can be lower if she’s out of work, but can also be a lot higher should land 
>> a great paying job.  Drop in everything, credit cards the whole deal, then 
>> figure out once you get to where you’re going which angles to cover and get 
>> paid off in the budget.  
>>  
>> I am guessing you guys have done some of this already though in preparing 
>> for checking out the housing market and talking to lenders because they are 
>> going to do roughly the same thing when checking your credit etc.  
>> Especially if it’s a conservative bank.  
>>  
>> Now I think I’ve completed all I was going to say.  Took two e-mails, but if 
>> I had been able to clean up the other one first it would have fitted into 
>> one probably *lol*.  
>>  
>> Instead you get two.  
>>  
>> On Mar 12, 2015, at 3:34 AM, Thomas McMahan <shadowmonstrosity@xxxxxxx 
>> <mailto:shadowmonstrosity@xxxxxxx>> wrote:
>>  
>> Wouldn’t worry about a house on market for 5 months.  Most around here are 
>> on a year or so.  To many deals fall through each time that happens that 
>> just adds more time that the house is sitting there.  Age, is only a problem 
>> if the house hasn’t been kept up and modernized over the years.  There are 
>> people who prefer older houses simply because they are more solid.  The 
>> house I live in was placed here in 1922.  Yes it came from somewhere else.  
>> The house next door is older and was also brought in here from another place 
>> too.  Fairly common in a town that springs up by a railroad.  I wouldn’t 
>> worry so much about that as apposed to how it’s fundamentally built, there 
>> are a lot of newer places that are likely to give you just as much trouble 
>> if not more.  
>>  
>> Any house is going to have ongoing mantainence of some kind.  Sided house 
>> are nice but siding fades over the years for example and eventually would 
>> need replacing.  Wooden houses have their things that have to be done, and 
>> so would brick, but brick is the best option as far as I’m concerned accept 
>> maybe when a big earthquake comes, then I would favor a wooden house, but 
>> what are the chances of that huh?  
>>  
>> I don’t know the market down there anymore so don’t know if that is a low 
>> ball figure on that house or not, but I can tell you it is larger than mine 
>> is and mine is two stories, but so is it’s price too.  
>>  
>> Go through it with a fine tooth comb with the idea of what has to be fixed 
>> now, and then in the next 5 years and what would be ongoing over the years, 
>> I don’t think for the long term ongoing it will be much different than a 10 
>> year old house verses the 60 year old house, but agin it is a matter of what 
>> would immediately have to be worked on.  When was the house last occupied 
>> too?  A house that hasn’t been occupied for a good while can have problems 
>> such as drainage because they haven’t been flushed etc.  It sounds like you 
>> already have someone with you who knows how to examine a foundation well and 
>> give you an idea of what would have to be done and when which is good.  Same 
>> with tuck pointing brick etc.  
>>  
>> It may be sitting on market because folks think it’s to high also, but you 
>> are going to drop in a price and they will take it or leave it, or you both 
>> the buyer and seller will eventually come up with something in the middle, 
>> or the seller is going to have an empty house on their hands.  
>>  
>> What heating and cooling does it have, and when was it installed too that is 
>> a factor, a 30 year old furnace is getting kind of old in this part of the 
>> world, but most of our furnaces are gas and they do have to work pretty hard 
>> for a good part of the year.  Does it have any chimnies, and where do they 
>> run through the house.  Ones that run through centers of houses on the 
>> surface are nice, but when they have to be worked on they are a lot more 
>> work.  Of course where you live a lot of homes are electric heat and 
>> electric water heat, which is another thing to add to your check list, how 
>> old is the water heater and when will you be replacing that.  A brand new 
>> house obviously you would get to wait a while before doing that, but chances 
>> are you would have to do it eventually, or have your price knocked down when 
>> you are selling it, or when your descendants are selling it.  But that goes 
>> with any house again.  
>>  
>> What neighborhood is it in?  How accessible is it to you.  Pretend Amanda 
>> had to leave town for a Month and start your math, what is easy to get to 
>> via walking etc.  Maybe that isn’t a problem for you at this moment, but 
>> life can always hand you changes, and well, next thing you know, you are 
>> walking to the grocery store if you know what I mean.  
>>  
>> Find out what their highest bills were for each utility in the last year it 
>> was occupied if you can, you need that in planning a general budget.  I 
>> don’t know your property tax situation anymore, but here they just give an 
>> estimate from the seller, but the problem is, that if the sell lived in the 
>> house for a long time you might get a little surprise when the annual taxes 
>> come.  Our’s wasn’t a surprise because the previous owner hadn’t lived or 
>> owned the house for to long.
>>  
>> So it becomes also a matter of do you get a house that you won’t have to do 
>> any work or as little work as possible on, verses one that may have to have 
>> some work done, or one that is a fixer upper.  We bought a fixer upper, but 
>> when we bought it was a seller’s market, it definitely isn’t that nowadays, 
>> so we went for a house we knew we could likely get.  Well the trade off is 
>> that it’s needed work done on it and still does actually, but likely we 
>> would at least get some money back when we sell it.  Maybe not a lot but 
>> probably some when all is said and done, and of course the sell of this 
>> place could be the lverage to getting a better place.  It’s probably what 
>> you parents did, if not them then your grand parents did, that is more the 
>> normal thing in history.  Well up until recently where you have people who 
>> expect to buy a brand new house that is larger than what their parents owned 
>> as their first house.  Well if it can be swung, go for it, but to me it’s a 
>> little unrealistic, well to my income level it is *lol*.  
>>  
>> What appliances are already there, and how quickly do you think you will be 
>> having to replace say: stove, washer, or more of a bear dishwasher?  What 
>> about cabinetry etc, is Amanda happy with that, having that done can also be 
>> expensive unless you have someone who works with you to give you a break.  
>> How much stuff will you guys do on your own for modifications verses having 
>> to hire outsiders.  So yes the advantage of a new place is that you won’t 
>> have to do that, but I guarantee you will pay up front for that, but that is 
>> why newer houses don’t stay on market long.  
>>  
>> So then it falls back to degree of work and mantainence that has to be done. 
>>  
>> On Mar 11, 2015, at 9:41 PM, Josh <lawdog911@xxxxxxxxxxx 
>> <mailto:lawdog911@xxxxxxxxxxx>> wrote:
>>  
>> Hello,
>>   We are finding tons of older houses that we absolutely love. When I say 
>> older I am talking 1950’s. I am struggling with this a bit though because I 
>> am looking ahead, past when I am living there. Or rather to the point that I 
>> am ready to not live there anymore. So, when I get to the point of not 
>> wanting to live there anymore it could be 10, 20, 30 or more years down the 
>> road, but I am sure there will come a time that I am ready to move on. If 
>> this is not the case and I stay there until I die then it is not a concern, 
>> However, a 1950 house that I live in for 20 years will then be 85 years old. 
>> I know the specific house that we are looking at has been on the market for 
>> right about 5 months. So, what do you all think, do you think I would have 
>> trouble selling an 85 year old home? It is on the market for 5 months at the 
>> age of 65 years old. It is right about 112,000.00 right now without 
>> negotiating a lower price. Do you think I would be able to get my money 
>> back? If it is not a major concern, the age of the house, then I will not 
>> let it sway my decision, but taking into consideration that it is an all 
>> brick rancher with over 1700 sq. ft. and it is almost 100,000.00 and still 
>> on the market concerns me regardless how beautiful the house seems right 
>> now.         
> 
> 
> 

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