Posted on 05/13/2012 12:49:41 PM PDT by MacMattico
Don’t do it.
I would think it would be foolish to buy a house that needs lots of work when so many low priced homes are on the market. Sentimentality can be very expensive.
Sell the old house. As much emotional attachment as you might have to it the logical decision is to let it go. The renovation and upkeep will close the gap on that price differential.
I’d enlist the help of a good contractor to determine what is needed and the cost. Condition of the framing, foundation/basement are big concerns. Also keep in mind any plumbing and electrical upgrades will cost and I heard the word flood in there. If money is not a concern who cares but I’d treat it like a business decision.
I would start by talking to some brokers to try and get a handle on what the house would realisticly be worth on today’s market. Then, try and figure out the neighborhood’s short and long term market prospects seem like in case you were to hold onto it.
Take a picture and let it go
All the best hopes for your mother and this difficult situation.
Finally...pray...
Cheers..
You had better check into whether or not the State can take the house to pay for your mother’s care.
If her money runs out before she dies Medicaid will foot the bills.In that case a Transfer penalty may apply to the assets.There is a 5 year span there that may come into being.
Better check with a lawyer.
I don’t know if this applies or not, but better check it out.
http://elderlawanswers.com/Elder_Info/medicaid-planning.asp
Get a structural inspection. Find out what repairs will cost. don’t guess on that. Hold off on your final decision. Gather information, like the structural inspection.
If the house is sound, you will be able to put that issue aside or at least know what you will be looking at to make repairs.
A big part of your decision is subjective. That is why I say take some time. Time often provides the answer to a subjective decision that can’t be quantified.
On the subjective decision, all you really need to know at present is how much time do you have to make a decision. As you go about your daily routine in your present house you will get a feel for what it will be like to be in both houses.
Don’t rush this decision.
I’d let it be sld to somebody else.
The creek floods?....FEMA is re-mapping communities all over the country; and, if this house grts put into a flood zone, look out - the insurance is so high (FEMA will require lenders to require this), the value of the home goes down.
Also, the entry of your relative into a nursing home complicates things, in my mind. If funds run out, and medicaid ends up paying for nursing care...the last minute sale of the house may raise eyebrows, and jam up the medicaid paperwork.
Its more valuable as a rental than as a single family dwelling. If you wanted to buy it to rent it out as apartments, I would say go for it. If you want to buy it to convert it back into a single family home, I would say you are going to pay way too much in repairs and remodelling.
It all comes down to how important this building is to you. You should understand you will never get out of it what you put into it if you choose to convert it into a single family home...unless you do all the work yourself...and that is a lot of physical effort that could be used on some other more profitable project.
Its hard to make a determination on this. How do you put a price on sentimental value and your own labor?
IF you can afford it and the nursing home care (see post #10)... do it! We grand kids let a family farm be sold...and regret it deeply.
Get some dollar figures:
Sale price of your home
Cost of old home
cost of repairs
If the plumbing and wiring of the 1902 house has been modernized and repairs are just painting, light carpentry and carpet type stuff, and your home will sell at a high price, the old house could be a bargain.
Get some numbers then see how you feel.
Within a couple years of doing so, a major drugstore chain decided they wanted to buy up the block and open a store there. I was in Korea at the time and realized that the last time I left that house would be the last time I had ever been there. My parents (and their neighbors) all got very reasonable offers for the properties and my folks found a wonderful place across town.
I'm a pretty sentimental guy, but as much as I thought I'd miss the old house, when I got back to the states, I realized that it had been just a building. It was the people who lived there and the things we'd done that mattered.
My advise? Let go of the house. Keep the memories.
A house is just brick, mortar and wood. The people in it make it a home. Do the numbers and see what they say.
Never, ever make an emotional decision on any major financial matter. Never ever let yourself be cowed into doing so, either, by some knowitall just to meet hisorher emotional needs.
My In-laws are in assisted living and I am fixing up the house he built himself in 1946. Upgrading their house is a royal pain in the butt. I cannot imagine working on one built in 1902! Sell it and move on!
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