House

So I put a bid on this house this morning. I did walk through, figuring it needs $12k in cosmetic repairs - carpet, hardwood floor, redo bathroom, replace doors, trim work. Nothing major.

The houses around it sold in 2000 for $120k. This house happens to be foreclosed and very deeply discounted. Asking price is $99,900.

Cool. The listing agency calls me back to ask me if I know who a certain fella is. I have no clue who he is. They proceed to fill me in without asking if I really wanted to know:

From the article: (from 1999)

You and I both think that. But the female mind doesn't. I'm targeting reselling to a family since the size of the house and everything in it. I have to disclose this information to the potential buyers. That can drive people away.

I mean, seriously. This guy murdered his wife and hacked her up in the house. Do you know how many people I know that don't like to go into a house where their grandparents had passed away naturally?

All the neighbors moved in 2000 after it happened, so the area is new. The girl I was talking to last night at the bar asked me why I was in the area since she lived right down the street. I told her I was looking at a house there and all that. She didn't mention it nor seemed to know about it.

I figure if it happened in '99 and I turn to sell in '08/'09, it's old news and no one will care. But I'm looking for opinions on the ability to sell this house.

Hell no! I just bought a house not to long ago and all the lady stuff was in it. She died in a nursing home. My mother, sister, girl friend and self all had the creeps like a presents. I didn’t care too much to work on the house alone, especially in the basement. My brother just came up from CA. and as he walked up the stairs in the basement said he seen someone standing in the door way. I personally think if you think you are possessed, then you are. I try as hard as hell to say I’m not and keep my mind busy and not to think of any weird shit. If there is more out there I sure as hell don’t want to see it. What is this house appraised at? A super deal would be to pick it up for half of what the house could sell for. Say it could sell for $120 k, then $60 would be a super deal. If you had to sell the house the next day, would you be able to get your money back, hell why not make a profit.

The house, in good repair, is worth $150-$160k easily.
The houses around it are of the same size, sold for $120ks in 2000. The area is expanding and growing fast, an average house out there now costs $200k to build, as of last year. That's also in a new development.

I'm attempting to pick it up for $90k as the asking price was $99,900.

The benefit to this house is that it's the only house in the cul de sac with a pool - inground pool at that, in great shape. The backyard is fenced in and faces an open field which may later be developed. A few hundred yards out is one of NW Ohio's largest metroparks in full view.

I have on hand approximately $15k to dispose of into this house. Total would be $105k if I get it at $90k. Value of the house at that point would easily be $155 to $170k.

I was told 3 bids have been put in, one yesterday, 2 today. I put my bid in today and I strongly suspect one of my bids to be one of the two submitted today. Others are still able to back out after finding out about the murder. I believe anyone buying this home is looking to do the exact same thing I am, fix it up, turn for a sale in 2-4 years.

Having the person murdered there doesn't really bother me. I mean, people die all the time. So this guy hacked her up and blood was everywhere. Someone else lived there for 4 years and had all the work done.

They were foreclosed and trashed the place. I have to replace all the carpet except in one room. I'm going to put Pergo floors in the kitchen and living room. Repaint the entire inside with high quality/long lasting paint. Invest $1500 into the bathroom alone. Redo the kitchen and add brand new, above midrange appliances into the house. Along with that, nothing we be below midrange since this area tends to be upper middle class.

That is, if my bid is accepted on this house. I have my game plan, I have the money, the time, and everything accept the bank's Yes.

That sounds like a good buy, particularly if you feel that there's only 12 k in cosmetic changes needed to be made. Remember though, the best estimate is often 20-50% less than what is actually required.

Forget the other shit that went down. Some crime loving freak who is 'fascinated' by sadistic crime in 2015 might want to give you half-a-mil for the joint; even if somebody doesn't, that sounds like a terrific buy.

Thats only $125 000 Aus dollars or so. Crikeys thats cheap. Super cheap! There's not a joint here under 200k. Not one.

I'd post the link to the house but it expired on Thursday for it's listing.

The house was built in '74. The roof is good, I've been up in the attic looking around. Bi-level so the lower level is actually a room and all.

No electric or gas on in the house but the water heater appears to be in working order.

All the carpet has been removed except for in the closests. They removed it upon leaving. No serious drywall damage. Roof is water tight.

I can see all the floor from top and bottom. Outside of the house is vinyl in excellent condition.

I priced out the carpeting per room with good quality padding. That alone came out to $6k but the lower level wouldn't need carpet, dropping it down to $5k. The bathroom will need $1500 for a new vanity, 3 piece tub surround, toilet, and tiling in the floor.
Kitchen cabinets, lower, need replaced or repaired. Repairs would be cheap since it's just the roller tracks that need fixed. They're plastic and broken, not a big deal.
Spackle the small knicks in the wall, fresh coat of a primer/Kils and then a good quality paint, I was looking at stuff around $60-75 a gallon for most rooms - quality that will last.
New deck outside which I didn't include in inital repairs, plus a filter and pump for the pool, also not included.
A few other things.. but roughly $12k for initial, $15-$20k to make it perfect condition. I figure it's a 2 years project for myself.

Rise, you sound handy with your hands and Tomsmart has made a small fortune fixing joints up and selling them for a profit.

I have to tell you, that sounds like a helluva deal. If you're into renovating and dont mind a little bit of project management when it comes to tradeys then for sure, get that place bought!

When do you find out?

My dad was good doing anything crafty.. I haven't actually touched anything in a while but I'm one of those people that picks up things really fast and can go with it.
I've watched drywalling.. it can be a pain but it's really not that bad. My friend's dad was a finished carp. and taught me how to do things, putting them into practice will be different.. I used to work at an engineering firm that used to do commercial projects. A lot of those guys were once in the trades and I learned a lot of things and how to do them.

I dated a girl and her dad was a 3rd generation master plumber.. his grandfather was one of the first plumbers in this area.. I learned a thing or two there.
My dad is excellent with electrical wiring.. I know someone who does everything basically.

You don't get anywhere working everyday.. I figure if I can pick this up, spend 2 years working my ass off on it.. I can make some money and pick up another house and have smaller payments on it, more cash on hand to do the job quicker.. maybe even pay for other things to get done. Start rolling that cash around.. start getting in the good areas.

I don't want to do it for life.. but I do want a strong nest egg and start investing in the stock market a little bit more. I'm in a good area where I can pick up a good area house for cheap and easily pull $30-50k profits.

One fella picked up a house on the river for $120k. Turned around selling it for $475k 6 months later. Had cash on hand to hire someone to do all the work with him and get it done. Probably easily made $150k on that deal.

Real Estate is the way to go...

Is this a small town? If it is then old news never dies.

You're an odd one.

Most of the stuff you pointed out is the basic stuff to cover. I've already ran through all that stuff but I'll cover with you for information.

You're required to insure a house, at least her. Insurance is around $400 a year.
Taxes have been rolled into the escrow account, as is standard practice almost anywhere in the US to my knowledge.
Water bill yes, roughly $45 every 3 months. Electric and heat you can call the respective companies and get the last 12-24 months of their service. Also has a woodburner in the house to help reduce costs. After 12 months you can get onto a budget where they take a flat cost year round instead of having a high gas bill in the winter and next to nothing in the summer.

Here's the trick in Ohio, not sure what other states have this. If I buy a house and turn around and sell it within 5 years of the date of purchase, I keep all profits tax free. So I pay 3-7% for my realtor, closing, and listing fees.

I buy it for $90k, invest $15-20k in this house, turn around and sell it in 3 years for $160k. Very feasible and the only reason I'm continuing to look at this property. That's pushing me to $50k in profits before paying a realtor and any fees. In the absolute worst case I pay 7% and give up 10-11k of my 50k for realtor fees. That's all negotiable at listing time though.

I'm going in as an investor. I can invest up to $20k into the house before I have to start worrying about money.

I've walked through enough houses with professionals and have had next to everything pointed out. I've taken them through some really bad houses so they can point everything out. There is no major work needed on this house, I suspect a new roof within the next few years though.

Windows are in great shape, wood with vinyl covering which insulates well and doesn't warp, also double panes, not insulated glass (which sucks anyhow).
I can see the foundation without a problem and know there is no structural damage or concerns there. The ground is clay based. Excellent to build on.

I don't expect to find hardly anything hidden. 200amp breaker, wiring from the mid 70s, plumbing is mostly PVC, etc. This house was not built as a middle class home, it was more towards a upper middle class to low high class. This I can tell based on the woodwork in the house and the quality of materials used.

It'll be my step to get into redoing houses part time and retire before Tom's ripe age.

Just trying to help if i can. So you’re saying you put in $115 and sell for $170 and profit $55. A profit of $55 on $115 is ok in my book, but not great. And this isn’t figuring in any of the other things that will eat at the profit. And this is assuming $170 isn’t a bloated selling price. Not to mention the one minor small detail of someone got cut up in the house. You say after $20 k you may have to start worrying. Is this going to be a second house for you to take care of? Just saying that maybe you should start to worry now.

I also didn’t figure interest you will pay.

How’s the insurance there. Here if you don’t live in the house the insurance just about doubles.

The lady that bought my house before me was thinking the same thing, until she lost the house to foreclosure.

To swim with the sharks you have to be a shark or you get eating by the sharks.

of course it's not ok but who's gonna make only a 5 buck profit on a house common be realistic here

I'm saying that making even a 20k profit is pretty damn good in my books, that leaves you some extra cash to start again witha new house, pretty much free cash for new upgrades and additions which in turn will generate even MORE profit if you go all out and high end in the second

Steve's rule: only buy houses that have 'curable' problems.

Uncurable problems:
-people being cut up, and small town remembering it-- bad for renting it or selling it
-bad location, which is not getting better
-bad earth
-bad economy in the area

There must be at least hundreds of houses one can choose from. Why bother with a incurable problem for a few bucks of savings? Forclosures/bargains are coming up all the time if one does the homework, or expand the geography just a tad.

Site note: You said females get the creeps. Well, the next person buying/renting this house would will likely have a female as the influencer.

I definitely would not buy the house. Think about it, why are they selling it for $90,000.00 . Don't you think that if they could get 160K by putting $15,000.00 into it they would buy it themselves?

I think the freak out meter is just too high on this one. If the real estate agent thought it would sell than they would have Bought it themselves at that price.

Buy it. If you can't make a profit on it then I'll limit your loss by buying it back of you for 70% of what you pay.[/personal favour]

I have it pending inspection which is something you should always ask for. That way, you can back out if you don't like that you'll have to paint a wall or you don't like the carpet color.

The house is bank owned. The people who bought it before bought the house cheap, for $94k in 2000. The houses around it which were in good condition, all sold for $120k. 6 years later at the going rate of 6-7% appreciation in that particular area, do the math.

This house sold for less because of all the remodeling that needed done. The house is still in the process of being remodeled but based on what I can tell from the previous owners, they were on the trashy side - items found in the backyard and through the house, writings on the walls of rooms. They had at least one teenage son who liked to spray paint drawings and words in the garage and another room.

It's a lot of work which is why I believe it's going for what it is - it's a bank owned property - they bought the house for $64,200 December 2005. That's all that the previous owners owed. They're asking $99,900 because it's a big profit for them and a good portion lower in the area.

Even with the money conversion, I wish I could pick something up that cheap and turn around to sell for a $10-20k profit.

If I were to pick something up for $60-80k, it's not in a good area, even with repairs, turning around to sell won't be easy and most likely won't yield a profit.

For example, my father lives in a good neighborhood but it's slowly going down hill. The nieghbor's house is 2 doors away from an elementary school. In other areas, the house should go for around $90k. But because the area is going downhill, they're trying to sell the house for $64k.

There are 3 'attached' suburbs to buy in but taxes are insane to keep out the trash. The area I'm looking in is more secluded and away from the city by about 18 miles. Good school district and the work should only take to mid-summer to have fixed - basically I need the summer to get the pool working. The inside I suspect should take 4 weeks for all carpeting, wood flooring, and the bathroom. A 4-8 weeks to patch up the walls, paint, and add in decor. A lot of this I'll do on my own because I have more time than money and I wouldn't mind living there. I don't need to turn an immediate profit.

Memories fade, all the neighbors are new. I'm checking into if I have to disclose the information after X amount of years and since it's up to speculation that the murder might have happened there, that I have to disclose it.
I'm also checking to see if the only reason it was disclosed to me was because it's a bank owned property. I'm checking all the legal sides. I know that if I have to disclose it and I don't, I'm up for a lawsuit, granted that I had to disclose information about the house.

It's bank owned in which they have the history of it. They know what the place is worth and what not. I have my realtor checking into finding out if that needs to be disclosed or not at the time of sale or if there is a time limit associated to it.
Or if the guy is in jail outside the state if I have to disclose it, etc.

All the neighbors are new and I haven't talked to them yet until my bid is approved.

The house is already under-value. If in good condition it will sell for the same amount as the houses around it.

Add in carpet, wood floor, etc. I can turn and sell for whatever I want within any amount of time- which I want to do within 5 years to avoid taxation.

Most people I believe are passing it up because of the amount of work/money that needs to go into it to really bring it up to a liveable standard.

Fortunately, I talked to my brother who will let me live with him for a few weeks while I get the place fixed up..

But I don't know even where my Bid on this house stands and I have all this discussion on the place!

Banks are closed today for the holiday so I figure I find out Tuesday or Wednesday and work is switching up all my travel dates.

Regarding disclosure, if the laws are not black and white, then I suspect if it ever goes to court, the court is going to say hey you knew such an important thing and you did not write it down. Also you had it disclosed to you, and you did not disclose it to the next buyer.

I think in this matter, the gray area would not work for you. Not a lawyer, but my gut feel.

I wish I could find something that cheap in a good area. I can buy a $20k house but in 2 years it might be worth $15k or $22k. Depending on if any shootings or major drug deals go down

The area I'm looking at has one of the best school districts, the whole city is good to live in, virtually no crime, closer to the airport, a huge state park next to it, plus two major highways right there.

I'm paying mainly for the land and location, not the physical structure.

Just called my parents. They bought their first house in 1973 for $30,000. They bought their second house in 1974 for $75,000.

I forgot to ask about my grandparents but I'm fairly sure they had one for $6,000.