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/biz/ - Business & Finance

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53650559 No.53650559 [Reply] [Original]

I rent this kind of fucked up 70 year old house from my dad. It's on the east coast near a few military bases in a decentlly safe area, just to give an idea of things that would drive the price up. It's current estimate on Zillow i just under 250k (that may also be an inflated price). Some houses in the neighborhood are vauled up to 450k.

There are issues with unsafe wiring, cracked ceiling, insulation, mold, bugs, 40 year old windows etc the house definitely needs 10s of thousands of dollars of renovation. There's really no ceiling to a ballpark esitmate of how much that could cost but probably a minimum of $25k to address the most basic issues.

My dad offered to sell me the house for $50k. I haven't had a job in 7 years, dropped out of college twice in that time, and have lived off VA disability that is now around 1900 dollars a month. I have 40k to my name. Is there any way this is a bad idea? Can I get a mortgage for the full value of the house and use that to pay for reno?

>> No.53650581

disclaimer: sorry if this should go on another board, feel free to move it instead of deleting it. it definitely shouldn't go on /adv/ that board is just /r9k2/

>> No.53650655

>>53650559
You might be looking for something like this:
https://www.bankrate.com/mortgages/mortgages-pay-home-renovations/

>> No.53650688

If you can buy a house for less than it is worth you buy it.

Speak to a bank about finance options, try to understand how you can pay off early as they just want you to be a paypig for 20 years

gg ez

>> No.53650697

>>53650559
Nope, sell it immediately for 200k if your dad isn't emotionally attached to it and give him $100,000, not 50k. Tell your dad that you appreciate the opportunity and will buy a better place thanks to him.
If he is emotionally attached to it improve it with help of brothers or people that can help.

>> No.53650747

>>53650559
>unsafe wiring, cracked ceiling, insulation, mold, bugs, 40 year old windows etc
i doubt you'll find a bank willing to loan you the money on a conventional mortgage scheme.

>> No.53650895

>>53650559
Brain with the Ricks

>> No.53652451

>>53650559
let me guess you play Rust?

>> No.53653448

>>53652451
can you cook brains in rust?
>>53650747
yeah I'm seeing some kind of catch 22 scenario where they won't approve the loan based on the condition of the house but I guess that waived with these types of loans >>53650655 I'm also nervous the inspector would condemn the house over mold or crazy wiring but Idk yet if they make that call

>> No.53653596

>>53650747
He can get a hard money loan easy as shit with that type of ltv. They'll even give him money to fix it.

Hello have to sell it or rent it out though. They don't do hard money on primary in most states.

>> No.53653616

>>53653448
>mold
They don't give a fuck.

What type of wiring? Knob and tube? If so, you actually definitely should get on that. Ins cos just autodrop coverage for that shit now.

>> No.53653628

>>53650559
You need an FHA loan. They pay for reno. Look into it.

>> No.53653638

>>53650559
Have your dad sell it to you for 200k on the book. It should appraise for that much. Once the sale is closed, have your dad, return to you, which you can now use to renovate from top to bottom. If the house can't pass appraisal, then spend just enough to fix it until it can.

>> No.53653647

>>53653638
Return 150k to you or simply have him pay for the renovation*.

>> No.53653739

>>53650559
3 things have to happen:
1) a home appraiser tells the bank “yes, his house is worth $250k. If the borrower defaults, you could probably get your money back”
>pro tip: they literally make sure it is as advertised (sqft, finishes etc) and compare to recently sold houses and adjust up/down. As long as you clean the house and hide major issues, no problem
2) the bank would need to know they are insured their money. Homeowners, PMI etc
>it only needs to pass a visual exterior inspection. No bullet holes or tarps and you’re good
3) the bank needs to know you can make the payment
>you have a job, can make a regular payment, and mortgage/insurance/tax is less than 40% of your income

>> No.53653752

>>53650747
They absolutely would.

unsafe wiring is probably just Newer romex in some parts spliced into the original wiring. It works but it's grandfathered into to the code. Cracked ceiling doesn't mean fuck all to the bank. All old houses have poor insulation, again fuckall. Mold is more than likely just bathroom mildew from a lack of a exhaust fan in the bathroom, not real mold. 300$ and you can get an electrician to install one for you. The Southeast has an issue with camel crickets and earwigs in older homes with basements. It's not like it's a bed bug infestation.

>> No.53653805

>>53653616
its mostly just loose spaghetti wiring in the attic but the circuit breaker is in bad shape. a few outlets won't work, possibly due to rodents in the walls. they keep chewing through the ductwork as well so I am breathing in mouse piss+shit with every breath
>>53653739
>you have a job
itsover.gif. I'm working on that part right now at least

>> No.53654265
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53654265

>>53650559
Just have your dad carry the note on the mortgage and fix the place yourself since you don't have a job. Youtube can show you how to rewire a house, drywall, plumb, etc.

(carrying the note just means that he accepts mortgage payments from you until the house's title is paid for. There is never a real loan in place, but if you stop making payments then your father will get to keep the note as well as what you've paid him so far.)
https://www.amerinotexchange.com/holding-a-note-on-real-estate/

>> No.53656318

>i rent from my dad
>he didn't even do basic repairs
I don't believe you.