Still looking for a berkeleying house

Ok. I'm getting really tired of this house search. Its been going on for a year and I haven't even gotten close. Now, the market that was showing me houses for $60k that were livable is now showing me 80k houses that need a bulldozer. I feel like my dream of getting out of mom and dad's house is slipping away fast. I've already gone from shopping for 1/2 acre with a 3bd and garage down to a 1bd no garage on a postage stamp and I'm still not finding anything that doesn't need three months of $20k rehab.

Have: $70k cash (in the form of an old loan from mom and dad that I've had forever) and pre-approval for $80k (could go higher, but I refuse to spend more than 50% of my income on a loan.) Take home pay: 25k/yr (basically $500/wk) Looking: 20 mile radius from Harrisburg PA Needs: An off-street place for four vehicles, one boat, and one motorcycle. I can whittle down to two cars and the bike and then find a place to store the boat, but a small shed/garage is a must for my tools and stuff.

I don't need much house. Its just me and hopefully some lovely lady in the future, so 2bd/1ba would be great. My last house was 576 sqft and it was perfect.

Can you folks help me brainstorm some options? Building something is possible, but until you spend $20k on a half acre and another $20k excavating/hooking up utilities, it doesn't seem to be a wise investment until you get the house built.

I thought about modular or even a double wide, but they tend to lose value from day one. And again, until you buy the land and hook up utilities, its not any cheaper than a stick-built.

I even briefly looked into renting, but in all cases its considerably more expensive than buying, and for a lot less place.

What am I missing? I MUST GET EMANCIPATED from my current living situation.

Bite the bullet and buy something that isn't perfect. Something's gotta give somewhere.

Either that or build it yourself.

OR, buy an apartment building and live there for a couple years while renting out the other units. But that's not what you want

Housing seems to be on the way back up in alot of places, either going to have to lower/change your standards or hope for a deal on a foreclosure.

Curtis, I feel for you as I was looking in south central York County for almost two years and had my heart broken twice. I have since closed and moved into my home (three weeks ago) it's not where I really wanted to be (location and price) but just like horse shoes, close enough. I did get a 1.4A lot with a shop that could hold four cars and a one car under the house (motorcycle parking) that is kind of tight for a car.

My advice is keep looking and do NOT rely on a realtor as most seem to suck, I found my home by searching everyday five to six times a day, be ready as good homes will sometimes be gone in two hours. With the demand for homes seems to be increasing the lack of inventory is driving the home price up with sellers being able to hold out, in December I noticed this and it seems to be getting worse for buyers but better for sellers.

Keep looking and expand you search range and price range, I paid $30K under the listed price for my home.

Happy hunting, Paul B

You don't get to buy what you want. You get to buy what's available.

mazdeuce wrote: You don't get to buy what you want. You get to buy what's available.

This, its better then how i worded it. Its also why i have a single car garage.

In reply to dropstep:

It's why I bought a house that smelled like cat pee, needed a roof, had two dead fiberglass boats in the yard and a falling down garage. At least it was cheap.

Is it next to the regular house?

Patience. Short explanation: there's a perception ZIRP is winding down and long term interest rates have begun to rise, so everyone who can is buying right now. If rates continue to rise modestly, prices and demand will ease over time and you will be able to find the right deal.

Longer explanation (this is economics, not politics, so let's don't go there): buyers ultimately purchase as much house as the monthly payment they can swing and in the recent past low interest rates have enabled people to pay a lot (like, a LOT) for houses because comparatively, much of the payment was going to principal. As interest rates rise, the same payment will buy a much smaller principal amount because more of the monthly payment will go to interest. Therefore, there will be negative pressure on the asset price. The fed will have its hands full in the coming years trying to let interest rates drift up to more natural, rational levels without pulling the rug out from under the housing or stock markets. There are as many ways to pull it off as there are to do it wrong, keep your fingers crossed that those who may will make wise decisions.

I feel you, we are looking in the sub 100k range to keep the payment well under what we can afford, and we are seeing some real dumps listed for 80-100k. We aren't scared of work, but sinking 20k in a full remodel is not in the cards right now, and for some of those places it would be required just to make it livable.

Have you looked into building something? Not allowed in some cities, but pour a footing and plunk down a Modular.

Look in to DIY Container homes?

At least where I live, what you're looking for instantly puts you in the ~$100k to ~$115k range. I was basically looking for the same thing you were, not wanting to buy a huge project or anything, and wanting room for toys. I'm a few states away from you though.

In that price range, you're probably going to have some projects involved unless you get lucky. In my experience shopping in the same market, that's just how it is around me. My solution was to find a super cheap place to rent with a few other people for a few years until I had enough saved up to look in the $115k range. Long term, I have no regrets with that decision as I'm much happier with where I'm living now than I probably would have been if I'd bought something 3 years ago.

The way I see it, you have 3 primary options:

1. Increase income. Most smart money guys suggest that a house payment shouldn't exceed 30% of take home pay. Of course lower is always better. So, if you make $25k/year, and your take home is closer to 19k, that means you should target a monthly payment somewhere around $475/month. (I trust you can do your own math, I'm just guessing at your net annual income.) That amount includes insurance/property taxes, so less than that would go to the mortgage. That's not going to buy much in the current market. As it is, if you can put $60k down, and your target monthly payment is under $500, that puts your price range up to around $120k. That would leave you $10k cash to do whatever with, and would still be a responsible payment level. IF you can increase the income, (new job/side gigs/other earner in the house, etc) you'll have far better options.

2. Grit your teeth and stay where you are and continue to save up, while also hoping that prices drop to a more affordable level.

3. It sounds like you've already done this somewhat, but sacrifice something on the "want" list. Each item that is removed from the "want" list should increase your options, and will likely reduce the price as well. Try and prioritize the criteria, and instead of looking for "the perfect place" with everything on your list, consider anything with "3 of the top 5 things I want" or something.

My wife and took over 2 years to buy a house. We were in a good living situation and had no pressure to buy quickly so we were picky. It was a marathon, and our search criteria and price range changed significantly as it wore on. We ended up spending more than we originally planned but got a great place for a fair price considering the market at the time. If you're patient, and continue to look consistently, you'll probably find something that works, and your price range might increase too as your savings go up.

I assume you are trolling Craigslist daily? I lived in Middletown for a summer and am in Harrisburg from time to time so I checked CL to see what's out there. I see a few options that tick most of your boxes. Did you see the cabin Getaway on 19 Acres? Could you be off grid? Are you telling everyone you know and meet that you're looking for a house? I would think your best bet is families looking to unload a deceased parents house or something of the like. I suspect in your price range you're going to have to do all of your own legwork rather than rely on a realtor unless there's a realtor that specializes in flip properties. Good luck.

Knurled wrote: Is it next to the regular house?

Funny, but I was hoping for a listing for a house next to Mr. Regular.

STM317 wrote: The way I see it, you have 3 primary options: 1. Increase income. Most smart money guys suggest that a house payment shouldn't exceed 30% of take home pay. Of course lower is always better. So, if you make $25k/year, and your take home is closer to 19k, that means you should target a monthly payment somewhere around $475/month. (I trust you can do your own math, I'm just guessing at your net annual income.) That amount includes insurance/property taxes, so less than that would go to the mortgage. That's not going to buy much in the current market. As it is, if you can put $60k down, and your target monthly payment is under $500, that puts your price range up to around $120k. That would leave you $10k cash to do whatever with, and would still be a responsible payment level. IF you can increase the income, (new job/side gigs/other earner in the house, etc) you'll have far better options.

The $25k is take-home. And I agree that under $500/mo is where I want to be. Increasing income isn't really in the cards right now. I work for a non-profit theater and I absolutely love my 100-hour-a-week job. I would work 24/7 if I could, but the time available for things like showering, eating, and sleeping are non-existent, so increasing income isn't really going to happen unless I get a significant raise. (but like I said, non-profit theater)

The other reason I'm staying modest is because of money. I refuse to be house-poor. I refuse to be forced to work just to afford a house. My last house was paid with cash, so if I lost my job, quit, or otherwise wasn't working, it wasn't like I had to panic to get a job at starbucks to make ends meet. I refuse to do that here as well.

2. Grit your teeth and stay where you are and continue to save up, while also hoping that prices drop to a more affordable level.

Been gritting for three years. Its bad. Caustic and eroding. Like; seeing a therapist about it. Its not dangerous or abusive, its just the exact opposite situation a guy like me (recovering from an abusive marriage and terrible divorce) needs for moving forward.

3. It sounds like you've already done this somewhat, but sacrifice something on the "want" list. Each item that is removed from the "want" list should increase your options, and will likely reduce the price as well. Try and prioritize the criteria, and instead of looking for "the perfect place" with everything on your list, consider anything with "3 of the top 5 things I want" or something.

I've now more or less given up everything on my want list. Ideal was small garage, small house, on 1/2 acre where I could eventually save my pennies and build a larger shop. Main criteria for the house was "livable and sound, but may need renovations"

I'm now looking at stuff for $80-90k that has no garage, needs major repair and renovations, 1/8th acre lots, and most are HUD cases with missing plumbing, electrical, and furnaces. There are plenty of condemned buildings in Harrisburg city limits, if I don't mind my car getting stolen once a week and sleeping with rats.

My wife and took over 2 years to buy a house. We were in a good living situation and had no pressure to buy quickly so we were picky. It was a marathon, and our search criteria and price range changed significantly as it wore on. We ended up spending more than we originally planned but got a great place for a fair price considering the market at the time. If you're patient, and continue to look consistently, you'll probably find something that works, and your price range might increase too as your savings go up.

I know what you're saying. My mistake was that I sorta dropped the ball. A year ago at this time I was not able to qualify for a pre-approval because of not having a 2-year work history, (I could have found a crappy loan, but the options weren't great) so I was looking at livable stuff for the $60k cash I had (and finding them) but I was "waiting for a better one". I had found the perfect one, but it went under contract while I was looking at it. By the time I got pre-approved, things were out of control and now I can't even find something livable for 80-90k.

Curtis says: "Still looking for a berkeleying house"

Internet smartass says: "Just wait till your parents go out and then berkeley in their house."

klb67 wrote: I assume you are trolling Craigslist daily? I lived in Middletown for a summer and am in Harrisburg from time to time so I checked CL to see what's out there. I see a few options that tick most of your boxes. Did you see the cabin Getaway on 19 Acres? Could you be off grid? Are you telling everyone you know and meet that you're looking for a house? I would think your best bet is families looking to unload a deceased parents house or something of the like. I suspect in your price range you're going to have to do all of your own legwork rather than rely on a realtor unless there's a realtor that specializes in flip properties. Good luck.

I did see that getaway. Is that the one out west? If so, it gives me an hour commute, but YES I COULD live off grid. (with a significant investment in some energy source. Gotta have my microwave.)

My main sources are: Realtor.com, Craigslist, Trulia, Zillow, and my agent has me on the MLS search that sends me listings every 5 minutes in my range which is 20 mile radius from Harrisburg and under 90k. Any other sources I should be checking? I browse HUDhomestore every once in a while but there isn't much on there. I'm now starting to look on home auction websites.

The MLS auto email service used to give me 10-20 a day. Now I'm lucky to get one every few days.

How much stuff do you own, and where are you storing it now?

mtn wrote: How much stuff do you own, and where are you storing it now?

18' boat, 67 Lemans, 66 Bonneville, 96 Impala SS, F150, motorcycle, lawn tractor, and a very large amount of tools and shop equipment.

Storing at Mom and Dad's in their two massive steel barns, along with their three RVs, four boats, 13 large tractors and endless farm implements. So the cars are realistically outside most of the time, but covered. The LeMans gets priority inside when there is room for it. I also have a 10x20 storage unit (which frees up $100 a month for a house payment if I can have the space for it at the new digs)

I can see whittling down a bit, but really the only car that is something I can part with is the Impala SS, and it would be hard to part with. The Bonneville is a promise I made to my dying uncle, the Lemans is my dream car, the motorcycle is about the only reliable form of backup transportation these days, especially because the F150 is a total lemon. It is down again today for an alternator. The boat is a must because I live on a lake three months a year.

So, theoretically I could keep that stuff at mom and dads, but it means giving up another one of my huge wants right now; independence. But, given the market, I might have to.

I would say that I really need parking for the truck (need it for work and DD), one backup car, and the motorcycle. And (depending on the size of the yard) the lawn tractor. For that reason I'm thinking a one-car garage for the tools and bike, then off-street parking for the two vehicles.

I have owned two homes. On the first one i sacrificed the want list to make budget. No garage, no basement, in town.

On the second house i sacrificed condition to make budget. Has a garage, and basement, rural, but needed lots of work.

The second was a much better way to go for me. Repairs arent that hard. On the first house the day i bought it i was looking at the best possible location and layout for a garage. Well guess what, eight years later i still hadnt even started on it.

1) It has everything i want.

2) It doesnt need any significant repairs

3) Its within my budget.

Pick two.

In reply to curtis73:

I applaud your financial restraint, and desire not to be "house poor". Knowing that $25k is your net can increase the "acceptable" 30% threshold to $625/month. So, you could pretty safely do $600/month with $60k down and that would increase your price range to $140k, but obviously your comfort level is more important than what financial talking heads say.

IT sounds like definitely a case of bad timing. Not just with your new job, but with the market in general. Sounds like you've got the search handled pretty well. If you keep looking diligently, something always turns up. I'm sorry I'm not full of cheap housing suggestions. Good luck!

Can you rent one of the 3 RV's from mom and dad? Are there hookups there? Take care of #2 and showers at work or the gym?

Start ranking everything. I'd start with the following: (This is not the ranking, just the list of things you need to rank):

• Living away from Mom and Dad
• Lemans
• Boat
• Bonneville
• Impala
• F150
• Motorcycle
• Lawn Tractor
• Handtools
• Power Tools
• Power washer
• Parts washer
• Weed whacker
• Payment under $500
• Garage
• Commute under (insert time)
• Not having a loan
• welder
• Having a job you love vs. one that pays you more money
• (insert other tools--ALL OF THEM; unless they're stored within another--i.e. handtools become "Tool Box")

Ok, you've ranked them. Where does it come out? For the items, what do you actually use, and will you actually use? Which ones are replaceable, and which ones are one of a kind? I'd assume things like the lawn tractor are easily replaceable for not that much money. Sell that. Do the same with a lot of them--possibly even the boat.

You're trying to hold on to everything here (well, you're not, just bear with me for my argument), but why? Really, why? What do you really want? Is it time on the lake? Is it being away from Mom and Dad? Because these things are tying you to them--including your desire for not being house poor. Somethings gotta give. Figure out what you can let give. Figure out what you really, really want, and then find what can get you that.

And it may not be home ownership at all, at least not in your area. You don't want to be tied down... then sell everything and become a nomad. I feel like you're trying to have it all, and you need the slap in the face that you can't.

Oh, 2 years ago you were looking for a new place to live--and it needed to not have winter. What happened to that? Clearly you reevaluated; something gave. Keep going with that to find what you need.