So there is this house in our neighborhood that we drive past often, and for the past year have been daydreaming about what it would be like to fix it up and make it beautiful. It is a gorgeous craftsman American 4square with the most amazing porch and views of the ocean. It is tired and needs work, but is a well-built home from the turn of the century.
It went on the market monday, priced to sell at 299k (fixed up comps up the street go for 5-600k) There are currently 5 offers in on it, with all offers due in tomorrow.
We did a second walk through today, with a contractor friend and a plumber. Both went through carefully to look at any issues and it was decided that a)this is a gorgeous, one-of-a-kind stunner, and b) very well-made... the kind of house we could never afford fixed up, and c)even in it's faded beauty, the problems are relatively minor so far (would need to have inspection still, naturally). The roof+furnice are new and foundation shows no cracks at all. There is some asbestos on pipes in basement and new windows and insulation will be needed.
So here is the breakdown of the two choices ahead of me, and I was hoping for some sage advice!
Old house fixer: Offer 350, if offer accepted, plan for a lot of DIY reno over the years, put new siding and windows on asap (+20k as per our contractor) and fix insulation... otherwise just live in it, scrape wallpaper and gradually paint. Lots of effort + money spread out over several years.
Pros: Amazing water views, excellent location, 1/2 acre of property in a town where lots are 50 x 125 ft. ... but taxes are still low, walkable to town and parks and beach, as well as NYC commuter ferry Amount in the hole once all said and done: 450,000, hopefully worth 5-600k conservatively.
Stay in and go up: We still owe 260, we could take out 100k construction loan to build up and make a layout that fits our needs. Our house would be new and finished, but our lot is tiny and not in a nice location at all compared to the other place. Still walkable to beach. Bikable to town. Nice neighbors. Amount in the hole once all said and done: 350,000, if we are lucky it would be worth 375 when that is done.
Neither of these options are about flipping so much as being smart and finding a home for my family . I am wary of buying a 100 yr old house, even if it's a stunning beauty, but then I am also a dreamer, and the house feels like home. It is so beautiful, and it's location so stunning! On the other hand, we weren't planning on purchasing a house at the moment, and all the expenses might stretch our budget pretty tight. I am starting a new job next week which will bring in more $$, but we are not financially where I would prefer to be before making an offer on a home... still, we are only months away from that, and I don't want to give up if the opportunity was a smart one.
What is your opinion on this? I am trying to be logical and not emotionally attached, but it is a challenge!