bostonbubble.com

Dorchester Grandma · Guest

I put an offer in on a foreclosed bank owned property, a fixer upper triple decker condo in Dorchester. It will need quite a bit of work so might have to put about 15 to 20 thousand into it. It is on fuses and will need updated electric. Also some de leading will be necessary to keep the grandkids safe when they visit. My Bank of America loan officer tells me that they have no product for this especially with the soft second mortgage program.

Does anyone know of any way to get a grant or a low interest loan to do this work. I don't want to just run up big credit card dept.

Migraine 2 B · Guest

Do you really need or want to get involved in a headache like this ???

theguest · Guest

For an amount like that, you could finance it with one or two 0% balance transfers. Just put it on your current credit card, and then open a new credit card with a yearlong promotional 0% BT. There will be usually a capped $75 fee, but with 0% interest it will be far cheaper than any other form of financing you could do.

admin · Posted: Sat Nov 08, 2008 4:35 pm GMT Post subject: Re: 0% BTs

CC · Guest

However I don't understand why would you want to buy a house NOW? It will get lower next year. Even the market hits the bottom next year (probably not), it will not go up very soon anyway.

john p · Joined: 10 Mar 2006 Posts: 1820

Think about the mortgage payments too to some degree, even though prices may drop, if mortgage rates go up steeply it make make afforability worse.

I would prefer to see the markets stabilize before I pulled the trigger if I were looking, unless I got an incredible steal.

CC · Guest

balor123 · Joined: 08 Mar 2008 Posts: 1204

It is hard to know if you're getting a steal without seeing future prices. Mortgage rates are very hard to control - it is largely a function of inflation. I see a lot of chatter that inflation - perhaps hyper-inflation - is coming.

Dorchester Grandma · Guest

This foreclosure was listed at $94,900. I am currently offering $80,000. Since I am almost a senior citizen I want to have the lowest mortgage payments possible so that I can stay in my home when I retire. Also a triple decker apartment brings $1700 per month with section 8 renters. That way it would be of some value to my kids down the road who could pay off the small mortgage and still make a profit.

I am concerned about the de-leading as it has past violations from the City of Boston for lead paint on window sills. We would tear out the pantry cabinets and put in some new Home Depot ones however scraping all of the window sills in a 6 room apartment seems quite daunting.

At this point I have in an offer but I lost out on the last one due to so much competition from investors, and many have cash. I especially love triple deckers as they have large walk in pantries and porches. A triple decker condo in perfect shape in an acceptable neighborhood could cost twice as much.

SamChady · Guest

My advice is to not purchase anything that needs that much work if you don't have cash or the experience. Those old triple-deckers usually need a lot more than electrical work.

If you still want it, why not pay for a great inspection, and ask that it all be fixed before you agree to buy it. Even if you offer more money for than the asking to cover the repairs. That way, you'll get a place that is fixed up and just have a mortgage will all the expenses in it. You might lose out here, but, it would be worth losing than to have a headache or worse.

Please also realize that being a landlord (even one on-site) can be very difficult and expensive. Try to educate yourself by reading some books on this. You WILL ABSOLUTELY get a call in the middle of the night when the toilet is blocked, the smoke detector batteries are getting low, etc. and these will be a minor things for you to deal with.

Additionally, landlords have it stacked against them with laws in this state (and many others). Did you know that if you have a 2-family or more, you have to provide trash receptacles outside for your tenants? (At least in Somerville you do.) Beware of all these laws as not knowing the law is not an excuse and you will be NAILED with scary letters and fines.

Dorchester Grandma · Guest

I am buying this to live in not to rent. According to the loan officer my mortgage would only be a little over $400 per month not counting condo fee if I put 20% down. There is no association there now

My grown children do not want to live in Dorchester so I am thinking that they could use it as a rental when I am no longer around or sell it when the market rebounds if it ever does. My son in law would do the cosmetic work for me like tiling the bathroom etc.. The property is bank owned so there is no chance of making a deal with an owner to do the work. Before I actually buy, I plan to get a contractor to come in to give me an estimate in case some of it is beyond what my son in law could do.

My realtor tells me that the bank will have to put in a new heating system because there is so much asbestos in the basement and there is liability for them. The lead paint is another story. Since my grandchildren would be only visiting and not living there, we could probably encapsulate the lead paint though you are required to take an 8 hour class on this which my son in law could do.

I appreciate your concern and I know that it seems daunting but the only way that I am going to be able to buy is to buy a foreclosure. Right now I am paying $1100 per month for rent and have nothing to show for it. I have been looking for 3 years.