[audio-pals] Re: Older Houses

  • From: Thomas McMahan <shadowmonstrosity@xxxxxxx>
  • To: audio-pals@xxxxxxxxxxxxx
  • Date: Thu, 12 Mar 2015 13:36:46 -0500

No he couldn’t, we he won’t once the property tax comes around.  Not in 
Chicago.  Detroit maybe though.  

> On Mar 12, 2015, at 1:19 PM, BethAnn LaPresta (Redacted sender 
> "bela28_02@xxxxxxxxx" for DMARC) <dmarc-noreply@xxxxxxxxxxxxx> wrote:
> Actually for $120K, he could probably buy an entire block in Chicago...
> From: Thomas McMahan <thomas.mcmahan@xxxxxxx>
> To: audio-pals@xxxxxxxxxxxxx 
> Sent: Thursday, March 12, 2015 11:08 AM
> Subject: [audio-pals] Re: Older Houses
> 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 <mailto:bela28_02@xxxxxxxxx>" for DMARC) 
>> <dmarc-noreply@xxxxxxxxxxxxx <mailto: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 
>> <mailto:shadowmonstrosity@xxxxxxx>>
>> To: audio-pals@xxxxxxxxxxxxx <mailto: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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