I am still in Tucson, no trip to Idaho this time. I have been busy here and this is what I have been busy about. The real-estate market here is turning around. Most homes are sold within 60 days of being on the market home prices are slowly increasing not decreasing. Homes in certain ranges are selling much faster those in the in other ranges some are going as fast as they come on the market. I felt that if I wanted to make an investment in real-estate now was the time to do it.
I have been searching for a house with this paradigm; the lowest cost house in the best neighborhood that I could afford. I looked at a lot of houses and most of them under a 100 thousand were not in good shape, for the most part I thought of them as bulldozer fodder. Some were in locations that would not support value accumulation on the contrary they would be dogs in any market. I had almost given up hope of finding a house that met my requirements when my real-estate agent sent me a listing from HUD that was located in a very good location in the state’s best school district. The houses surrounding the listing were of much higher value and the lot was twice the size of most lots in the area. I met with my agent and I made an offer to make a long story shorter the offer was excepted and the conditions I asked for were agreed too. The conditions were that the seller (HUD) pay for the septic system inspection and pump out and 3 percent of the sales price of the house towards the closing costs. HUD agreed to that saving me thousands of dollars. I love my government it sends me checks every month and pays the closing costs on the house I want to buy 🙂 it fed and clothed me for decades paid for my most of my college tuition and only required that I be a moving human target for a few years.
Since the offer has been agreed to I have been busy signing documents having the house inspected and the termite inspection etc. I have been in and out of the house several times so far the issues with the house are; a broken roof tile on the ridge of the roof, a hole by the garage door where some animal could enter, an unnecessary GFI plug where the portable pool was located and an electrical connection to the BBQ area that needs to be put in conduit, the toilet flushing mechanisms need replacing, there is active termite infestation in the garage, but damage is minimal and should be an easy fix. Other-wise everything works and no serious defects. The appraiser will check it out next week and if it comes in on the money the deal is good and then it is up to the under-writers to check everything and dot the i’s and cross the t’s.
The plan is to hold on to the house for a few years till the market gets the price up enough to make it worthwhile to sell it for a profit then buy or build something else for fun and profit.
This will make the tenth house I have bought or built not all have been profitable some have been very challenging. If this does not accrue enough value to sell in a reasonable time (two or three years) I’ll still have a nice house to live in. The sales price of the house for those curious to know is $143,000 when this house was built six years ago it listed for $240,000 I don’t expect that price to come around anytime soon. My interest rate is locked in at 3.5%, no HOA or dues and parking of RVs is allowed no through traffic, easy ride to shopping and services.
It is not my dream home but it is a nice little house (1460sqft). Hopefully everything will work out as I have envisioned it.