TG i agree with you. But my wife has minimum standards that are very very very high. They involve min 2.5 acres. She’d rather rent that than buy a “stupid tract suburban piece of hell” if she cannot have the space, although I get yelled at every 3rd week for being “so fucking cheap” for not just breaking down and buying something in the 400-500k range that would suffice. Even meadowview is tight from her perspective. I like the condo I pay all cash for idea myself, but I am part of a larger organization in which my vote only counts for a tiny bit.
Here’s how I see it. If we take $200plus and offer it on this house and if by some miracle it were accepted, we’d have a house that based on the comps in the area I’m comfortable we could get appraised for 450 if it were all finished up and reasonably nice. I know the area well. Yeah, I could see that number coming down, way down, as I am heavily bearish. Also, interest rates could jump, and we might have the value plummet a hundred k or so and make it not possible to finance the place down the line for anywhere close to the value today.
Probably take 50,000-100,000 to finish it roughly, that’s about 4-6 months of income for us and we could go just a bit at a time. My wife’s not fussy about rough living conditions, just hates suburbia.
I’m guessing a flipper would be hesitant to take on something that might require 50-100 k to finish, there might be a mightly slim profit margin on this one, even for someone real aggressive, and I bet that most flippers are a little tentative today …
On 200,000 in the bank of course we’d earn practically zero. Here, we’d be saving our rent payment of 1700 a month, roughly 20,000 a year. I figure thus we are making 10% tax free on our $200,000 purchase of the house instantly, in the sense that we scrape together a pile of $200,000 and save 10% a year, the $20,000 rent, or 10% of 200,000. Frankly, I’m not going to spend the money on anything other than a house,a dn the timeline would be long enough that even if the house dipped in value a lot, we’d still be fine hanging in there…
we are stretched in the sense of no money in the bank, being house poor, but we’d have zero debt. Also, keep in mind, this is not likely to go through, as our cash offer would be a little more than half the current asking price! that’s why i called it a hail mary. on the other hand, that asking price is kinda silly …
