Loan Question

[hawkeyefan]

North Branch.

About 100-125 houses in the Forest Lake/North Branch and areas in between for $130,000 or less

Still could sneak in on a bank owned for really cheap if my Aunt comes through with something before it hits the market.

Rush City has new construction for $129,000 (including finished basements, appliances, sod, etc.) but my Aunt is concerned about resale in that area since it is pretty far north and not close enough to Duluth.

I see your location is Edina, so it would make sense that $130,000 would seem cheap and rare to you

Looking at this one too:
http://www.eramuske.com/Listings/33/...AK-STREET.aspx

Rooms are small and it is older (1993 vs. 2009) but it has been on the market awhile so might get in a little cheaper. We would finish the bathroom in the basement to help resale of course.

Not to be a douche, but I don't think you should get lathered over resale value in any event if you're buying in such a rural area. It's a rare breed to live that far out. We were lucky through the downturn in that we actually gained value, while with the same home five blocks from us in Minneapolis, we would have been badly upside-down. You'll be lucky to simply get back what you paid after a few years.

I have to say that I LOL'd at the thought of a house built in 1993 as being "old". There isn't a house in my neighborhood that wasn't built prior to Winston Churchill resigning as Prime Minister.

And finishing out bedrooms is a great way to build some equity. We went after a "fixer upper" as a means to build equity fast. When you're young, you'd be crazy not to do so.

[hawkeyefan]

Hey I finally took a minute to check out that house. Looks like a 3/1 split level with no real basement, correct? I mean, nowhere to add a bedroom or bathroom?

If so, I'd suggest taking a look at some other options for sure, even if they're a bit more money. The best combination for somebody young and able-bodied is like a 2/1 or 3/1 with a nice yard that hasn't been landscaped but has some mature trees. Make sure there is unfinished space in the basement that you can finish yourself, because the sweat equity is a huge money maker right off the bat. Same goes with landscaping.

Eventually, hire a landscape designer to help you build a multi-stage landscaping plan that you can do yourself with some hard work, so that you don't have to spend much at one time and can mete the work out over 2-5 years. The landscape designer will ensure that the end result looks professional and attractive, and is the best money you will spend.

It's amazing how many thousands of dollars in equity you can rack up over a handful of years by just pushing a wheelbarrow around your yard building garden beds, patio, deck, etc. and building/finishing bedrooms and bathrooms.

I also recommend a bit older house if you can find one out there. They're built better and have more room for sweat equity improvement. Not to mention that they typically have much more character than new construction, and better yards (trees).

We bought an all-brick 1952 rambler with 3/2 with two brick fireplaces and no landscaping that had been badly neglected. Rotten one-car garage and rotten deck. The previous owners had been there since about 1960 so nothing has been done. Replaced windows, yanked up carpet and refinished the oak floors myself, painted, tons of landscaping, built three raised and fenced garden beds, planted several trees, built an 18' diameter paver patio and path. Next up is replacing the garage, driveway and deck, and the interior doors (hollow junk that were cut short for carpet). There is always something to do but these old homes are AWESOME and rewarding. The neighborhood is full of mature trees. I could never live in a treeless new development, they're horrible. We've got room to add two more bedrooms so the house will ultimately be 5/2 and have some serious curb appeal.

If you knew what we paid for a 1700 square foot "fixer upper" rambler with a crap yard, you wouldn't believe me, and if I told you what the 5/2, ~2800 square foot end result will be worth in the end, you definitely wouldn't believe me. But if you do it right, and while you're young, you'll never have to work on another home again.

Do you mind my asking why you live so darn far out there? At your age, I'd have figured moving in would be attractive to you.