Quote :

"If you decide to have a kid and go back down to a single-earner, just sell the house and move into something smaller."

Are you married? Do you have kids?

I've found its pretty hard to reduce quality of life once its been set at a certain level. Kids also add a different dimension to it (is this new house in a better school district, etc...).

7/7/2010 1:40:39 PM

Quote :

"I've found its pretty hard to reduce quality of life once its been set at a certain level."

Having a kid does that automatically.

And no marriage or kids, but I have friends with both, and I've seen it done.

I'm just interested in how big are the monetary differences. His initial references are vague "double the mortgage", "single earner", etc.

7/7/2010 1:47:00 PM

Quote :

"Having a kid does that automatically. "

There are some days I would argue this point, and some days I would agree with it

7/7/2010 2:23:12 PM

Well, to answer a few questions, excluding a lot of detail (my wife hates me disclosing details on line, and I cant blame her), my original mortgage was well below my purchasing power. My wife had her own townhome. The combined mortgage of her townhome, and my house (when we were single) would be this new mortgage.

The net cost on the bottom line is probably going to be 50% on top of my current mortgage, maybe less (when I take into account the saved gas we are going to get, and the fact that I am probably going to be selling my shares of the airplane partnership), and under our existing conditions, that isnt huge. If one of us were to lose a job, we could make do for a good bit before it would be an issue. The other thing that can significantly reduce the price is the taxes... I would obviously have the house reappraised from the ridiculous amount it is now (nearly $5200 a year), and could probably get it closer to $2500-$3000 which is more in line with the actual price.

We expect to have a kid or 2 in 3-4 years. I know it is going to be a burden. But I plan more financially for this type of stuff than most people, so I expect us to be fine.

The biggest issue, as someone else stated, this is not a short term house. Even though this house is amazing, we will probably be underwater for a bit before we get back on top.

this is a pic...

http://www.thewolfweb.com/photos/00516154.jpg

[Edited on July 7, 2010 at 2:38 PM. Reason : .]

7/7/2010 2:36:05 PM

Dude, that house is fucking sweet. Get it. If you think you can keep it long term, then do it.

If something happens (job-loss, can't afford kids, etc), then sell it and you won't lose any money (hopefully at least...but getting something at 50% of its tax value means you'll AT LEAST break even in an emergency sell).

7/7/2010 2:39:17 PM

Well, all this excitement, and I havent seen it in person. I see it this afternoon. There are only a few pictures of the inside, and none of the pool or other features. My realtor wonders if the previous owners trashed it for the price it is listed (it was a foreclosure).

7/7/2010 2:57:42 PM

3800 sq ft is a lot of house for 2 people. What would you do with all of the extra space until a kid comes along? We bought a 4 bedroom house with a formal living room + den and one bedroom is empty and we have alternated between having our furniture in the formal living room and the den (the other one is empty).

7/7/2010 10:35:41 PM

I am keeping my AC on like 66 to give it a running start in the mornings.

7/7/2010 10:40:58 PM

Is that house in Colvard Farms?

[Edited on July 8, 2010 at 8:01 AM. Reason : @ Carzin]

7/8/2010 8:00:58 AM

^^I do the same thing.

7/8/2010 8:51:26 AM

according to recent reports, your monthly mortgage payments should never be more that 35% of your take home pay (collectively, if you're married).

Discuss.

7/8/2010 9:26:51 AM

My wife and I both work right now but our monthly mortgage payment is 33% of just my take-home pay or 19% of our collective take-home pay and we have more than enough house for the two of us.

I think that is probably a pretty solid rule.

I also don't know that the "collectively, if you're married" part is a good idea either. Unless you both have very, very strong job security for a long time I don't know that there is a reason to buy a house that requires both of you to be working besides people always having dreams bigger than their bank accounts. Depending on the salaries and location of course, most people (especially younger couples without kids) can easily find a good house that is affordable on just one income with the ridiculously low rates that are out there today.

33% of just my income was plenty to buy a house that is honestly bigger than we need at the moment (but lets us expand with kids farther down the line, meaning we wouldn't have to move for quite awhile if our jobs stay solid). That lets her income all be supplemental, savings, etc.

[Edited on July 8, 2010 at 9:41 AM. Reason : 33%]

7/8/2010 9:31:37 AM

The new house would be .27 of our after tax income. I am not going to jinx the security of our jobs by commenting on them

We looked at it yesterday. Incredible house. But it was foreclosed on, and it has been left with some issues (about 10k worth of work, including new carpet upstairs, some minor drywall repair, and repainting). The hardwoods downstairs still have a like new finish, but there are scratches throughout that I hope can be patched without wasting needing an entire refinish (which ewill cost a lot). The core is good. The pool is a big green swamp.

I consider all of this good, however, because it makes us be able to offer even lower, and discourage less adventurous buyers.

Everything else in the home, including the HVAC systems are all high end. All the appliances are like new (no refrigerator, however).

7/8/2010 9:43:34 AM

^No wonder you've been busy lately. And here I thought you didn't want to talk to me. Congrats if it works out. I definitely want to come check it out!

[Edited on July 8, 2010 at 10:58 AM. Reason : ]

7/8/2010 10:57:56 AM

Quote :

"Is that house in Colvard Farms?"

Nope.

Chris: I'll be in touch shortly. I have been busy.

7/8/2010 11:44:40 AM

well my somewhat "dream house" for a starter-home was sold today. I was literally a day late on it. It was on the market for 6 days.

Now i've found one that's quite a bit less money, but also quite a bit smaller. But it has great hardwoods, all of the appliances stay, and the backyard/deck are thrilling. But no garage. A garage has been a make it or break it issue for me since I hate having a dirty truck, but i'm almost starting to think that with the money i'd save in getting this house, who cares. I'll just have to wash it more.

7/9/2010 8:47:27 AM

^i was in the same boat. i wanted the garage, and that was make or break it for me. eventually, i found it. i think its still a sellers market, and if you absolutely want to have it, i'd wait for it. as it seems we are in the second swing of the market downturn, more and more are bound to pop up.

7/9/2010 10:14:45 AM

Question for those who have built their own home or know a lot about the subject:

The lot we are under contract to buy at one time had a house on it. It has since been torn down. We contacted the county to get the records showing the location of well and septic for the old house, but they did not have them. So, we do not know the location of the existing septic. We can get out of the contract on this clause if we want to, but I don't want to. My main concern is that there will be a huge septic tank in the area of the lot that we want to build the house, put in the pool, etc. Is this normal during construction to possibly remove an existing septic tank or would you consider this a big red flag?

Thanks in advance.

7/9/2010 5:27:27 PM

Well, my mortgage got sold to another bank 1 month after I bought the house. No big deal, but my main question is what will happen to the escrow money (tax+insurance) that I already paid to the old bank? Will they automatically transfer that to the new bank?

7/9/2010 10:04:14 PM

Quote :

"Question for those who have built their own home or know a lot about the subject: The lot we are under contract to buy at one time had a house on it. It has since been torn down. We contacted the county to get the records showing the location of well and septic for the old house, but they did not have them. So, we do not know the location of the existing septic. We can get out of the contract on this clause if we want to, but I don't want to. My main concern is that there will be a huge septic tank in the area of the lot that we want to build the house, put in the pool, etc. Is this normal during construction to possibly remove an existing septic tank or would you consider this a big red flag? Thanks in advance. "

I would not let an old septic tank stop me. How big is the lot? Someone who installs septic tanks should be able to find the lines pretty easily and trace it back to the tank. Have them remove it or go rent a back-hoe and do it yourself.

Do you know the location of the old well? It should be filled in/capped off for safety reasons if you are not going to reuse it.

[Edited on July 11, 2010 at 8:44 AM. Reason : i can't spell]

7/11/2010 8:43:49 AM

Well, we made a super low ball offer on the house to get things started (25% off asking price- this is a foreclosure and bank owned). Attached a sheet of 27 things that need fixing from a visual inspection, as well as houses that were move in ready for essentially their asking price. Have to wait and see how this works out...

7/12/2010 9:35:16 AM

Quote :

"Well, my mortgage got sold to another bank 1 month after I bought the house. No big deal, but my main question is what will happen to the escrow money (tax+insurance) that I already paid to the old bank? Will they automatically transfer that to the new bank?"

essentially yes. you do not need to do anything, except maybe check with the new mortgage holder on everything after about 2 months.

Quote :

"The lot we are under contract to buy at one time had a house on it. It has since been torn down. We contacted the county to get the records showing the location of well and septic for the old house, but they did not have them. So, we do not know the location of the existing septic. We can get out of the contract on this clause if we want to, but I don't want to. My main concern is that there will be a huge septic tank in the area of the lot that we want to build the house, put in the pool, etc. Is this normal during construction to possibly remove an existing septic tank or would you consider this a big red flag? "

likely, the tank is placed in a spot on the property that is out of the way. you can always call NO-CUTS and get water/sewer/gas/power lines located on the property so you can see.

i will mention that removing hazardous materials, like this tank can be problematic. it would not be a deal-breaker for me, however you must realize that the soil under and around the tank will likely be unsuitable to build on, meaning you will not only have to remove the tank, but also the dirt around it and replace with engineered fill.

i would not "rent a backhoe" and do it yourself.

7/12/2010 9:47:37 AM

In addition to what DaBird said, there are permitting issues involved with "decommissioning" a septic tank. If the property is in Wake County, there is the Soil and Water Conservation office that oversees this sort of activity. The process includes breaking up the tank in place, using lots of lime to neutralize the bacteria, and filling the voids with sand. That being said, this is not a DIY activity.

The best best would be to find the old tank and "update" it to use with the new construction. The permitting for this is generally easier than getting a permit for a new tank.

I doubt the One-Call center would have your septic information, but you can call them for a locate, it is a free service. The number is 811.

[Edited on July 12, 2010 at 10:14 AM. Reason : moar]

7/12/2010 10:13:16 AM

^^^ Good luck. Since it's a foreclosure and bank owned - will the wait time for a response be a bit longer due to the red tape? I am on my 2nd house so I have only been through the process twice. However, each time the bidding process to me was the most stressful but fun at the same time. Hope it turns out well and you get a great deal.

[Edited on July 12, 2010 at 10:30 AM. Reason : ^^^]

7/12/2010 10:29:57 AM

from my experience, you will hear the response pretty quick for foreclosed homes. Short-sale homes, on the other hand, take a few months to get responds.

7/12/2010 11:48:52 AM

The only reason it is taking so long is because the listing agent will be out of town until Wednesday. We expect a counter by Thursday. There are currently no other offers on the house.

7/12/2010 12:40:55 PM

Good luck Ryan

7/12/2010 4:20:45 PM

apparently a misplaced smiley makes all the difference.

Regardless septic tanks are removed/replaced/upgraded all the time. I did mine last year after it stopped working. A heavy piece of equipment went through the back yard and crushed a few lines and crushed the tank itself. (my house is over 80 years old, no telling how old the tank was).
Contact your local permit office to see what is needed. Also any septic tank installer should have experience in this as well. Mine was completely replaced with new lines as well. Good luck!

7/12/2010 6:23:51 PM

First offer flatly declined (I suspected this would happen). Second very serious offer went in.

7/13/2010 1:07:51 PM

There are a few things about this house that are major detractors, but I want to attribute it to the previous owner. The house is large, as as such, I expect large bills. But the previous owner sets the bar for high energy use.

The house is 3600 sq feet, and his average electric bill was $375 (Thats what the year round average was). He had bills in the summer that exceeded $700.
He spent no less than $2000 a year in natural gas, and one year he spent $6000 (yes, this is for real).
Water... Believe it or not, this is the worst. This area is serviced (unfortunately) by Aqua. You pay $10.25 per 1000 gallons (4x the Raleigh rate). This dude, during the summer irrigation season, had months where he used 70,000 gallons of water. This amounted to $800 water bills.

I compared this property to properties of similar size and stature in the neighborhood. They have all very normal bills. $160 average electric, $70 average gas, $100-$150 a month for water [they obviously arent watering much]. Part of my offer has a big window for inspection. I am going to attempt to mitigate the concerns, by running everything as I would run it for one week, and see what things cost.

I literally have compared this house to about 10 other houses in neighborhood. The ONLY difference is that this house has a SMALL pool. I expect a pool to add maybe 20% to the electric bill. It has a heater, that obviously he ran all the time when he had gas bills over $1000. I wont be running the heater. And the house is tankless water heater, and 14 seer HVAC.

[Edited on July 13, 2010 at 2:43 PM. Reason : .]

7/13/2010 2:42:42 PM

I think you are going to be suprised how much electricity is required to run the pool.

Do you know the HP of the pump? I can compare it to mine.

I have a 1.5HP pump, and I see around $75 a month for just the pump. Luckily I have solar heating panels, so I dont have the cost of gas/electric to heat the pool water, but that can add up significantly. Its probably a 50,000-100,000 BTU heater, which is a pretty big heat load.

If you dont put a cover on the pool at night, you can see a $1500-$2500 annual gas bill pretty easily from using the heater. You can reduce that to $500 or less by using a cover nightly.

7/13/2010 2:56:38 PM

Well, I cant locate the pump. I think the pump walked away when the house was foreclosed on. It makes ZERO sense. I cant find any PVC piping. I even crawled under the house to see if it was there. There is no pump house.

I simply won't be heating the pool with gas. If its too cold, then just dont swim in it

I definitely dont underestimate how much the pool heater can cost to run. Thats why most people dont use them. Or if they do, it is sparingly.

The pump, again, I would expect that to maybe add $50-75 a month. This really is a small pool. I dont have the dimensions, but its not a biggie.

in any event, the second offer is probably going to be rejected. I kinda hope it is. I want to step back, place my house on the market, and put the horse before the cart. We can carry two mortgages (just barely), but I worry about the house not selling, and then I having to rent it out. I dont want 4 rental properties (already have 3). its getting ridiculous.

[Edited on July 13, 2010 at 3:17 PM. Reason : .]

[Edited on July 13, 2010 at 3:17 PM. Reason : .]

7/13/2010 3:16:01 PM

Planning to rip down our old deck and build a new one. I want to have brick columns instead of 4x4 or 6x6 supports. So now I need to find a mason to build these and I assume they are going to need a detailed plan.

I am in the process of scouring the web to look for ideas and tips. Do any of you have any good websites that you would recommend?

7/13/2010 3:19:20 PM

I have a mason coming by to do some small repair work on my property. If you want, I'll send you his contact info if I am happy.

7/13/2010 3:45:00 PM

Quote :

"Planning to rip down our old deck and build a new one. I want to have brick columns instead of 4x4 or 6x6 supports. So now I need to find a mason to build these and I assume they are going to need a detailed plan."

Why not just brick around the 6x6's to make it look like the bricks are carrying the load? You could do that yourself after the deck is built for a fraction of the price.

7/13/2010 4:14:19 PM

Quote :

"First offer flatly declined (I suspected this would happen). Second very serious offer went in."

just curious, was your offer to buy the house contingent upon selling your current house? If yes, you might want to remove that. From my experience, banks just don't like the hastle of various "conditions" in the offer. They would rather take a no-string-attached offer for thousands less.

7/13/2010 4:45:29 PM

It was noncontingent with a letter of preapproval for financing.

7/13/2010 6:46:46 PM

Quote :

"Why not just brick around the 6x6's to make it look like the bricks are carrying the load? You could do that yourself after the deck is built for a fraction of the price."

make sure your footing has a ledge big enough to carry both the 6x6 and the brick.

7/15/2010 12:03:32 PM

I'm trying to install the washer right now. Unfortunately, my tap faucets do not have blue/red colors to indicate hot/cold water. Is there a universal way for this? (ie left is hot/right is cold)?

7/18/2010 7:08:05 PM

turn them bitches on and feel that shit out! (probably not a good idea)

7/18/2010 7:10:38 PM

I dont know if there is an official standard, but every single one i have ever seen is hot on the left, cold on the right, just like sink hookups.

7/18/2010 8:28:09 PM

i've seen hot on the right and cold on the left a few times but it is normally the other way around. Just hook it up and turn the washing machine on and see if it gets got when it is set to hot. If it doesn't, then pull it out and swap them.

7/18/2010 10:51:58 PM

w00t! got my check for $8000 + $36 interest in the mail today

7/19/2010 7:30:27 PM

1.hook your garden hose up to it and take it to the sink
2.turn it on
3.profit?

7/19/2010 8:16:04 PM

Quote :

"sagging/broken main sewer line, maybe in two places. "

thought some of you might want to see this...i dug up my sewer line and found this....







none of the cracks in the pvc were caused by me when i dug it up.

once upon a time, someone smashed the cleanout and the shock cracked the sewer line. then Fern Gully grew into the line.

its amazing anything has moved through that line over the years.

7/20/2010 3:59:34 PM

got my $8000 tax credit, but I forgot to file as "head of the household" instead of "single" on the 1040x, so my tax got adjusted and I only got $6000 check. Anybody think I would have any trouble getting the other $2000 if I change my filing status back?

7/20/2010 9:36:50 PM

^^ Just imagine if that pipe was VCP! The roots would have made the crack bigger and bigger until they infiltrated the main. Then the municipality would have had a mess. Fortunately, there are chemicals that remove roots from pipes, but it still doesn't help the pipe integrity.

7/20/2010 9:54:54 PM

yup. the main really wasnt in danger here IMO. the tie is still a good 10-15 feet away.

the crazy thing is that root has been growing in that pipe since before i moved to the house, 5 years ago. i have NEVER seen a cleanout in that location, meaning this damage has been buried for years.

7/21/2010 8:29:46 AM

we are putting out house on the market tomorrow. Not looking forward to it, but since we are a growing family and can afford to move up now seems like a good time.

7/21/2010 11:37:57 AM

link? location?

7/21/2010 12:10:12 PM