Looking at Buying Fixer Upper Need Some Advice

[Big Red]

As one who has bought lots of rentals and worked on many houses over my lifetime, the cosmetic issues are never a problem. But the 2 biggest things to consider is to be sure the STRUCTURE of the house is in good shape. Such as the basement and if there are water issues. AND the second is that with an old house, the walls are not insulated so heating is going to cost more.

As you look at the house, open and close all the doors and windows--be sure the door fits into the jamb and the windows open and close with no effort. Any problems could signal foundation shift.

One wonders why anyone would side a house and not do the trim and soffets. That house needs some love, for sure. Be sure the trim and soffets are not rotted, signaling water leaks. Go over it with a fine-toothed comb and don't be afraid to back away if you see structural problems. One thing I learned in my house buying career--don't get emotionally involved until you're sure the basic house structure is all OK. LOOK for problems--don't hide your eyes from them. Be realistic because an old house CAN be a money pit as was said above. Old houses can be cold in winter and very hot in summer.

As you look at the foundation, sill plate etc. always carry a pocket knife with you and test areas of wood that look water damaged. If the knife tip goes in easy, you've got rot on your hands. Use binoculars to take a good look at the roof and valleys,too.

 

[artistkate]

I am waiting to go out with a contractor to get an estimate. He will also be able to help me check for any issues That will need addressed. I'm also going to have all the exterior walls insulated and the whole house stripped and new drywall up.

 

[nealtw]

Did we every get how old this house is?

 

[artistkate]

It was built in 1865

 

[nealtw]

So that makes it a balloon framed house. So there willl be some extra little things that should be done when you have the exterior walls opened up. Balloon framed houses have studs that are full height from the foundation to the ceiling on the upper floor and floors are hung off of that. Mostly it is just adding 2x4 blocks between the studs just below each floor and just above each floor. It called fire stopping so if you have a fire in the basment wall or in the floor cavity, it doesn't have a free run to the attic giving people more time to get out. We will want to see picture of the wall when they are opened up, over the years people do all kinds of stuff like move windows with out doing proper framing and while it is open thing are easy fixes.

 

[artistkate]

yeah, well I have a contractor who is going to be doing the work for me, I'm just going to rip open the walls and take out the floors for them.

 

[Big Red]

Taking the walls down to the studs and then insulating with blown in foam,etc. will give a great result.

 

[bud16415]

Get a big dumpster. The amount of lath and plaster is going to amaze you if your plan is to take it down to framing. Protect yourself with a good pair of goggles, good respirator, work boots and good gloves. You will need a snow shovel, crow bar, push broom, wheelbarrow, work lights and a lot of elbow grease.

Sounds like your plan has changed some from your original posting.

Good luck and looking forward to seeing the before and after photos.

 

[artistkate]

Yes it has, the bank will only approve my renovation loan if I hire a contractor but I bf an help do work, so that's the plan right now.

 

[Big Red]

Good luck with your project. Exciting times!! Keep us posted on progress.

 

[nealtw]

We want to look over his shoulder, don't fall into any traps like
http://www.houserepairtalk.com/showthread.php?t=18716

 

[artistkate]

oh my, that's crazy! The guy I'm working with is liscened, has a lot of references and he is friends with some of my boyfriend's family members so he comes highly recommended. I do plan to supervise and make checks as often as possible to take pictures and follow along with rate of construction. Should have my estimate by next week, so we'll see what happens. I'm so excited for it to all go through but also worried that it wont.

 

[slownsteady]

If it does go through, then it was meant to be. Otherwise, it just wasn't.

 

[artistkate]

The house isn't going to work out. The bank rejected it before even lettin it get appraised. Pissed me off. I fired my bank and my realtor after she told me she refused to show me any more foreclosures or fixer uppers. So now I'm working on my own and looking at 2 houses today that I would be able to pay cash for. One used to be a rental and one is an estate sale.

 

[bud16415]

First off sorry to hear that news. And on the same note I’m really glad you haven’t given up the hunt.

I had somewhat a similar issue with the agent that was showing us distressed properties. I actually could feel his pain in a way as he was spending as much time and gas on these 25k houses (maybe even more) as he would on a 250k place and his commission would be many times more. I almost got the feeling they take on these sales as a favor to the banks they do a lot of business with. What I couldn’t understand the ones holding the paper why they wouldn’t work a deal to at least get some cash flowing in and the power on with a perspective buyer. They just want them gone is all I can figure. We had no problem as we were paying cash but getting insurance was tricky. They do the well what do you want to insure it for thing and what did you pay. Now that ours is done we needed to reevaluate our insurance needs again and the guy that comes out is doing just the opposite of the first time around and telling us the value is much higher than we thought.

Paying cash is really the way to go or at least have a down payment of half or more finance the rest with a simple loan and then pay it off as quick as you can. When you pay cash it’s yours to do with what you want burn it down or fix it up for the most part. That freedom of not having a payment will let you direct all your household budget to the fixer upper.

Watch out going on your own around here lots of landlords want out of some of their old rentals and will offer to carry the loan with a land contract. That can be good just make sure you read the fine print. Lots of them say you miss a payment and the property goes back, or they may require you don’t start making changes.

 

[nealtw]

Was that the bank that owned it, if not deal directly with that bank and low ball the crap out of it.

 

[artistkate]

It wasn't bank owned, it was owned by a retired couple that had been there sine 1970, they lived in a different house. But I am certain I can find something halfway decent for cash. The two I looked at yesterday weren't anything I wanted to dip my hands in. But there is about 5 other ones that I am interested in looking at, just gotta find someone to let me In them.

 

[nealtw]

I few more dissapointments like that and you will be a seasoned housing entrepreneur, just as tough to deal with as that bank is.

 

[artistkate]

Well I looked at one today that is really nice. Needs work, but it's able to live in. Shot them an offer of 5k. Gunna see what they say.

 

[artistkate]

Here are more shots, sorry they are sideways for some reason...