Author Topic: Help Me Evaluate This Home as a Primary Residence  (Read 3324 times)

jbmatth

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Help Me Evaluate This Home as a Primary Residence
« on: February 03, 2014, 01:19:49 PM »
Here is the home my wife and I are interested in:

http://www.zillow.com/homedetails/1129-Fa-Lan-Ridge-Rd-Ponca-City-OK-74604/86040621_zpid/

As you can see it is a foreclosure and has been on the market since September when it was listed for $155K, and is now listed at $107.9k.  It is a homepath home and would most likely not qualify for a traditional mortgage because of the condition.  As far as getting to the property it is about 5 miles from where town really starts, but is actually only a mile or so out side of city limits.  It is however on a private gravel road with two other houses.  Said road is extremely rough as in steep, in my truck I had to be careful not to spin while traveling up the hills.  It sets basically at the bottom of a hill about 20ft up from the bottom flat ground below.  The yard doesn't have much of a level to it other than an area about the size of the house on the south side.  A majority of the yard is large rocks and large trees.  Most of it hasn't been maintained in a few years.  The hill/tree/rock part of the home is about 1 acre and the flat grass part of the home is the remaining 2 acres give or take. 

Now onto the house, it is a large 5 bed, 3.5 bath home with just over 3,000 sq ft that was built in '81 with a flat roof.  Sometime in the past couple years a pitched roof was installed over the flat roof.  I haven't gotten on top of the house to determine how this was installed but know the eaves were not finished and are open for all to see and animals to roam around in.  The gables were not finished either and only have foam board on them.  I do know the old overhangs are in ROUGH shape, they are pretty rotten and would need to be removed, with the walls behind them looking in okay shape as far as I could tell.  There is a pool in the back that has a cover and a level in it, but I don't know if it is even functional.  It has central air, but heat if from a heat pump that has water running out of the garage onto the driveway so I anticipate that being a complete replacement.  Also all of the exterior doors are rotten and may need to be completely replace, two sets of double doors, and two single doors. 

As far as the interior goes I haven't been inside of it yet, but don't anticipate it being in any better shape than the pictures show.  I was told there is evidence of water damage in the ceiling from the old flat roof.  I was also told by a realtor that there is structural problems, I could only see one small crack in the brick work on the home from the outside. 

So my question is this: Is this house even worth looking at or making an offer on?  I am very handy and have a brother, brother-in-law, and father-in-law that owe me big time favors so the labor pool I can draw from should be pretty nice.  My father-in-law is retired and would be able to put more time into it than I would, but can only work at a slow rate because of too many cigarettes over the years.  We currently have a house we are living in that we wouldn't sell until we move in to a new house.  It wouldn't make a great rental because of many reasons.  Secondly we only have about $14K in the bank right now but that will grow by about $2,000 every month, that would be the money used for down payment and the cost to do the renovations.  As for financing we would have to go through the homepath route most likely, is this a problem?  Lastly, if we do decide to tackle this project and make an offer, what would a good starting point be. From talking to a realtor it doesn't sound like they have had many if any offers on the property in the past 5 months.   
Thanks for taking the time to read this and for any advice,
James

honobob

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Re: Help Me Evaluate This Home as a Primary Residence
« Reply #1 on: February 03, 2014, 01:39:44 PM »
Sounds great!   I can't imagine anything that could go wrong, can you?

jbmatth

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Re: Help Me Evaluate This Home as a Primary Residence
« Reply #2 on: February 03, 2014, 01:42:41 PM »
@honobob, I perhaps sense a little sarcasm there.  A comparable home in move in condition is in the 250-300k range. I have been skeptical of this home as it appears everyone else has been as well. 

ritchie70

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Re: Help Me Evaluate This Home as a Primary Residence
« Reply #3 on: February 03, 2014, 01:51:42 PM »
That roof is hilarious. Either the add-on "new roof" or the mansard would have to go.

I assume you have enough people in your family to justify a 5-bedroom, 3-bathroom house, and enough dedicated swimmers to justify a pool? That's a lot of house, and a pool is just a hole in the ground where you dump money.

I don't think we can give you an answer. I would get your wife and do an interior tour, then if you both like it, get all your handy relatives and do another tour, then if it seems like a "GO" get a structural guy and maybe a contractor or home inspector to have a serious look at it.

You really need to know what you're getting into with it before you get into it.

My gut is that the roof is turning people off immediately, but by the photos at least it isn't that bad inside.

honobob

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Re: Help Me Evaluate This Home as a Primary Residence
« Reply #4 on: February 03, 2014, 01:55:06 PM »
@honobob, I perhaps sense a little sarcasm there.  A comparable home in move in condition is in the 250-300k range. I have been skeptical of this home as it appears everyone else has been as well.
A little!  I'm losing my edge.  You home should be one of the best investments you'll ever make.  Even if you turn this into a gem you'll probably have an overimproved property in a bad location on a rock road that you can't sell or rent if something happens.  Sounds like you're forcing it.

« Last Edit: February 03, 2014, 11:34:55 PM by honobob »

Another Reader

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Re: Help Me Evaluate This Home as a Primary Residence
« Reply #5 on: February 03, 2014, 01:59:05 PM »
How about offering lot value, less demolition costs?

Seriously, if this house had any potential, a contractor would have bought it, fixed it up and flipped it.  From the list of problems you give, I would guess there are foundation issues as well.  With your limited capacity to work and your reliance on an uncommitted labor pool, I would look for something with fewer unknowns and less work.

The house may be eligible for Homepath Renovation Financing if you are a masochist.  But get a sworn commitment from those that will do the heavy lifting before you move forward.

jba302

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Re: Help Me Evaluate This Home as a Primary Residence
« Reply #6 on: February 03, 2014, 02:00:20 PM »
+1 to what A.R said. I'm a whore for land though, my wife had to drag me kicking and screaming from all properties over 2.5 acres.

jbmatth

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Re: Help Me Evaluate This Home as a Primary Residence
« Reply #7 on: February 03, 2014, 02:15:56 PM »
As for the pool, I love to swim, but would never want to own one.  I would either fill it in, or rent some heavy equipment and get it removed.  Homes with land around here don't come up very often and when they do they typically don't last long, or are overpriced.  A big reason we have even been this interested in it is because we both grew up in the country on large farm areas, and are cramped in our current home.  We are actually only looking for 4 bedroom homes, but this one just so happens to have 5.  I have thought about offering around 50k just to see what the bank would say, they may not even reply and if that is the case I'll just walk away.  I could pretty easily work 20 hours on this house a week, and slightly more when it warms up. 

soccerluvof4

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Re: Help Me Evaluate This Home as a Primary Residence
« Reply #8 on: February 13, 2014, 04:46:00 AM »
and filling it probably not allowable and removing would be quite costly

jbmatth

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Re: Help Me Evaluate This Home as a Primary Residence
« Reply #9 on: February 13, 2014, 06:13:34 AM »
I've decided to hold off on it, if it comes down substantially over then next couple months then I'll look at it in more detail.