Hey guys,
First time home buyer here. We live in southern ohio and we can't find a home at the price that we want for as nice/our style. So, instead of looking for the perfect house, we are going to try to find the perfect fixer upper.
We found a home and had realtor show it to us yesterday. House is in Wheelersburg, OH. Affluent town for the area with great school district. House is going for 225k for 4 bedroom 2 story home with half basement/2 car garage. Has natural gas/electric heat. Has cable internet (some areas around here don't). House has been sitting on the market for 6 months. Was previously a rental. Needs lots of attention to kitchen and 2.5 bathrooms. I would like to get the home for 180-185k and put no more than 20k into it. Similar homes in the area go for 250-300k. So, say we get this home for that price and have 205k into it total. Maybe we could sell it for say 250k later... maybe (depending on the market, just assume the market is doing well... we would keep the home until then to live in).
Does anybody see any downside to this? In the meantime, we would get a 30 year loan at 4%, but probably pay larger payments to begin with. We have 20-25k to put down on the house. I would rather be maxing out the 401k and starting an IRA than throwing tons of money at a home.
Thanks guys,
Newb.