Whatever you decide is best, Brian - sounds like you have some deep roots. I hope you end up with a place that's comfortable for you.

(September 9, 2017 at 6:01 pm)Cthulhu Dreaming Wrote: Whatever you decide is best, Brian - sounds like you have some deep roots.  I hope you end up with a place that's comfortable for you.

It isn't a matter of deep roots. Mom raised me in Northern Va. I value my memories of her no matter where we live. This is strictly economics. It seems to me a risk either way. I could dump money into replacing then rely on resale to make up for my investment. I don't want to do this like a flipper because my interest is not profit. But the unit is old. 

I can remember seeing an add for a same sized trailer home in horrible condition for 75k when my mom bought me this place. That says to me the structure has no value and the location is the real price.

So it amounts to the risk I want to take. Putting a new home on my property I could afford, even the middle to high price range. The risk is selling it over time. I have lived here for 12 years and seen property sit for years. 

If I stay here, which seems less complicated, and remodel, although a risk too, It just seems cheaper. 

Replace seems to be the path of those intending to make a profit. I just want my property to pass insurance codes so that if something does happen I can file a claim.

Renovating a trailer doesn't turn money -- you're doing that because you want to live there. It's kinda like a more important version of putting rims on your Pinto. No matter how much happier you are with it, you will never recoup the dough, so you should only throw it down if that's what you want for yourself.

(September 9, 2017 at 7:13 pm)Thumpalumpacus Wrote: Renovating a trailer doesn't turn money -- you're doing that because you want to live there. It's kinda like a more important version of putting rims on your Pinto. No matter how much happier you are with it, you will never recoup the dough, so you should only throw it down if that's what you want for yourself.

You got it. Just like cars, and as much people make houses out as appreciating in value, that is bullshit, it is always a loss. The land is always what determines the bulk of the cost and demand. If the structure is in good shape long term, and you make improvements, that is a narrow window. I am being pragmatic in looking at remodel or replace as an ultimate loss long term. 

Investments should not be sugar coated as absolutes. Sure some are safer than others, but long term, it is still like Vegas. It still ultimately depends on market, and luck. You can have all the math and stats on your side and still lose. 

I think good investors always look at the risk as the loss coming first vs the long term risk gain. Any new business startup that ends up making it starts up with years of initial loss. 

So in terms of personal property I think it amounts on comfort and goals, not getting rich quick.


In fact, I saw a property less than miles away from me, which had a solid brick structure, and two other smaller units that looked to belong to the property, with the proper investor, could be turned into rental units. I was drawn to it, but it was 209k on top of looking old. It does nobody trying to buy or sell property to over charge in my estimation. But most people, like a used car will lie about the condition or omit the condition just to get rid of it.

And the lady who sold me the house I lived in did the same thing, because if I had known about the things she failed to tell me about I wouldn't have bought it.

Houses can appreciate. It depends on market demand and owner upkeep.

Trailers will not appreciate outside of land value itself. Given a stable land market, mobile homes will always go down in value. I'm not trying to bag on you either, Brian -- I live in a trailer m'self. But them's the facts. If you don't have a poured foundation, you won't have recoverable money, unless the real estate around you jumps up. Even if you do have a solid floor, the market also considers demand. If your upgrade is in a trailer, your only real chance to capitalize improvements is if you live elsewhere and rent the trailer out -- and even that will take a long time.

But if your floor has wheels, understand that any upgrade you do will be upkeep and not investment. You won't recoup your money. No matter what you park on that acreage, that land is worth more. Live there comfortably, and have enough insurance so that your heirs can pay it off and sell for a profit.

(September 9, 2017 at 7:44 pm)Thumpalumpacus Wrote: Houses can appreciate. It depends on market demand and owner upkeep.

Trailers will not appreciate outside of land value itself. Given a stable land market, mobile homes will always go down in value. I'm not trying to bag on you either, Brian -- I live in a trailer m'self. But them's the facts. If you don't have a poured foundation, you won't have recoverable money, unless the real estate around you jumps up. Even if you do have a solid floor, the market also considers demand. If your upgrade is in a trailer, your only real chance to capitalize improvements is if you live elsewhere and rent the trailer out -- and even that will take a long time.

But if your floor has wheels, understand that any upgrade you do will be upkeep and not investment. You won't recoup your money. No matter what you park on that acreage, that land is worth more. Live there comfortably, and have enough insurance so that your heirs can pay it off and sell for a profit.

I am not denying that. But most properties are really about location and considering how materials have become much cheaper, unless you own a house owned by George Washington that appreciation is like you said, location and up keep. I am merely saying even those whom upkeep their property can still lose their shirt as if it were an empty lot they were trying to sell the land. 

Right, the land is worth more. That is why I am seeking to minimize my loss which it will be regardless. The last thing I would want is to put a new home on it, then have a hurricane wipe it out. The land is worth more, and that is exactly the way I am looking at it. I have to resign myself to a loss no matter what. My goal is to fix it up so that I meet code for insurance.

(September 9, 2017 at 3:17 pm)Brian37 Wrote:

(September 9, 2017 at 1:55 pm)chimp3 Wrote: Are you going to have to borrow a lot of money to fix this place? I think money is better spent on standard homes that appreciate over time. You can always recoup most of your investment and sometimes turn a tax free profit.

No, my mom left me savings I will have no problem fixing it, I do not have to borrow money, the only rub is shortening the time it gets me to my social security. I really have no interest in leaving or profiting off the house, just making it functional.

---

When I die, I will be willing the property to my sister, what she decides to do with it is up to her. The prob with buying a new location and hauling off this unit is I would still be stuck with property taxes on both, not to mention the mortgage on the new one. I am leaning to simply fixing this one up since I intend on staying in it.

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I could literally go out tomorrow and buy another property with cash, I simply don't want that depleting the savings my mom left me with. Economically it seems fixing it up is my best and cheapest option.

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(September 9, 2017 at 2:09 pm)chimp3 Wrote: Right. That is why I asked about borrowing. How much over time would you actually pay for the repairs. If you had cash and the repairs will get you 20 years of housing affordably then it may be worth it. I have a truck with nearly 300,000 miles. I have been spending  about $1500 a year with repairs and maintenance the last 5 years. So, $125 a month is better than a $400 a month payment for a new one.

My goal is to spend the minimum amount possible on repairs, stay in the house. I don't have to borrow. The bathroom is a disaster. That is looking to be 8 k by itself high end. 5 k for the septic tank. 10 k for new interior sheetrock and flooring. My budget I am comfortable with with all the repairs is about 40k. 50k in a pinch. I feel more comfortable doing it this way than buying new property or replacing this one since I have no intent on leaving. I am thinking that I am highballing all of this regardless.

My neighbors said they spent 30k inside and outside, on their house and while mine might cost slightly more, I am thinking it should cost less since I am not redoing the roof or exterior. The bathroom and replacing the septic tank are my biggest concern. With the floor rot, I think instead of replacing every sector, I can simply replace that particular spot outside the bathroom, which is way gone.

Well, $40,000 over 20 years is less than $190 a month. Pretty good for living quarters.

(September 9, 2017 at 8:03 pm)Brian37 Wrote:

(September 9, 2017 at 7:44 pm)Thumpalumpacus Wrote: Houses can appreciate. It depends on market demand and owner upkeep.

Trailers will not appreciate outside of land value itself. Given a stable land market, mobile homes will always go down in value. I'm not trying to bag on you either, Brian -- I live in a trailer m'self. But them's the facts. If you don't have a poured foundation, you won't have recoverable money, unless the real estate around you jumps up. Even if you do have a solid floor, the market also considers demand. If your upgrade is in a trailer, your only real chance to capitalize improvements is if you live elsewhere and rent the trailer out -- and even that will take a long time.

But if your floor has wheels, understand that any upgrade you do will be upkeep and not investment. You won't recoup your money. No matter what you park on that acreage, that land is worth more. Live there comfortably, and have enough insurance so that your heirs can pay it off and sell for a profit.

I am not denying that. But most properties are really about location and considering how materials have become much cheaper, unless you own a house owned by George Washington that appreciation is like you said, location and up keep. I am merely saying even those whom upkeep their property can still lose their shirt as if it were an empty lot they were trying to sell the land. 

Right, the land is worth more. That is why I am seeking to minimize my loss which it will be regardless. The last thing I would want is to put a new home on it, then have a hurricane wipe it out. The land is worth more, and that is exactly the way I am looking at it. I have to resign myself to a loss no matter what. My goal is to fix it up so that I meet code for insurance.

Hmmm, there are good upgrades to existing foundation properties that can if not add to resale at least shore up loss on resale. But it sounds like you're thinking about this plenty already and probably have your head on straight about it.

(September 9, 2017 at 8:26 pm)chimp3 Wrote:

(September 9, 2017 at 3:17 pm)Brian37 Wrote: No, my mom left me savings I will have no problem fixing it, I do not have to borrow money, the only rub is shortening the time it gets me to my social security. I really have no interest in leaving or profiting off the house, just making it functional.

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When I die, I will be willing the property to my sister, what she decides to do with it is up to her. The prob with buying a new location and hauling off this unit is I would still be stuck with property taxes on both, not to mention the mortgage on the new one. I am leaning to simply fixing this one up since I intend on staying in it.

---

I could literally go out tomorrow and buy another property with cash, I simply don't want that depleting the savings my mom left me with. Economically it seems fixing it up is my best and cheapest option.

---

My goal is to spend the minimum amount possible on repairs, stay in the house. I don't have to borrow. The bathroom is a disaster. That is looking to be 8 k by itself high end. 5 k for the septic tank. 10 k for new interior sheetrock and flooring. My budget I am comfortable with with all the repairs is about 40k. 50k in a pinch. I feel more comfortable doing it this way than buying new property or replacing this one since I have no intent on leaving. I am thinking that I am highballing all of this regardless.

My neighbors said they spent 30k inside and outside, on their house and while mine might cost slightly more, I am thinking it should cost less since I am not redoing the roof or exterior. The bathroom and replacing the septic tank are my biggest concern. With the floor rot, I think instead of replacing every sector, I can simply replace that particular spot outside the bathroom, which is way gone.

Well, $40,000 over 20 years is less than $190 a month. Pretty good for living quarters.

But why put a mortgage on yourself when you have the flat out money to replace or remodel? I am no fan of credit as it is currently sold as cheap and quick and indentured slavery is the way to foster trust. I am not against lending, I just don't like the current exploitation market marketing.

If it was me and I had the money on hand to repair...no interest loans ...and I could stay some where for under $2000 a year I would opt for that. IMHO!