Hi, I'm Gladey and I live in wild and wonderful West Virginia. Boyfriend and I live in an old coal camp house that will be deeded to us when we're married next June. The plan is to then buy land (hopefully 10-20 acres) and work on building a small house (paying as we go), then rent out said coal camp house. My biggest issue at this point is simply frustration with the land buying process (indifferent real estate agents, lack of financing for unimproved land). Also, wondering how we will be able to save enough money to get started. So I guess my main question is, for those of you paying as you go, how much did you initially save up before breaking ground? Thanks to everyone for all the great information and inspiration!
Welcome to the forum, Gladey.
Coal camp house sounds interesting - I read some stories years ago about the coal mines - a novel I think.
Hopefully you'll get some input from others.
We scrounged cash and credit card cash and refinanced a piece of equipment to get this place. We have other property we owe on but this place is pretty well free and clear now. For starting out if you are in an area with no permits needed it is easier to do as you go. It is also easier to use recycled materials.
Yes, I have to say I'm pretty grateful for the utter lack of building codes here (though it does make for some pretty horendous damage when big storms do come through). I grew up in coastal north carolina, where hurricanes are a problem, so I'd like us to build as strongly as we can regardless. I'm also grateful for the still-reasonable land prices, though our area is booming and we'll probably have to go a few counties over.
We're hoping to order you plans when we have the money. In the meantime, I spend odd moments doodling cabin blueprints. Our old house is a blessing right now, as we are using it to practice our carpentry skills. We're quickly learning where to cut costs and where not to (very slightly damaged counter-top from lowes: yes; luan ceiling (we were a little scared of the drywall process): no. By the time we have the land and money, we should be ready.
Edited to add: WV does actually have building codes, they just aren't enforced outside of city limits in our area.
I don't think it is so much a question of how "much" you need to save up before you get started. To me, it's more of how much will this first "phase" of our project cost (whatever that first phase is). Unless some decent sized land comes with the "deeded" coal house, your first phase is probably going to be "buy land". So how much money (percent of land cost) as a down payment is going to be necessary to convince a bank to loan you money on the land (if you decide to go the loan route) or to give you a more favorable interest rate. Answers to these questions can be found by doing a little homework at the bank, credit union, etc. Don't forget that the land owner may be willing to finance the loan for you, at possibly a better interest rate than the bank.
If land is not the first phase, then maybe clearing the building site or if cleared already, putting in whatever type foundation you choose will become your first phase. None of those costs are that hard to determine.
I know of several cases where school teachers built their own houses. Each time they would save up enough money to get started on the next phase. It took them several years to finish, but when they did...voila, NO mortgage. A guy I know right now took twelve years to finish his house. I drive by it maybe two times a week. Sure is a nice house, but what makes me most envious is I know it's already payed for.
You can do this. It will happen a little at a time, but it WILL happen. I've been working on my house now for over a year. It's going slow, but it is going. Read the blog at bottom of this post. It can be done.
You can try to obtain some land from a seller that will carry the note. There should be some out there, especially if financing is difficult in your area. My 3-1/3 acres was purchased with $500 down and monthly payments of $127.50 for five years. That was some time back so adjust for inflation but it should still be doable. All sellers want cash initially but when you explain to them that they get to make $XXX in interest over the term and they have had their property for sale for awhile and they still own it.....well you get the idea. You just need a motivated seller.
Wow, great location, n74tg! Right on the water! The land we have our eye on now has been sitting on the market for almost six months and the owner lives out of state, so they might consider financing us. I definitely need to start thinking in terms of phases, as you guys suggest. That makes the whole thing seem so much more doable. We're looking in to possibly getting a home equity loan to finance the land and the initial building once the camp house is in our name, in case we can't get the seller to finance. I guess my next step, planning-wise, is to figure out how much each phase stands to cost. Thanks so much for the encouragement!
I also ran into problems finding someone to finance the property, since it was over 10 acres which is not common here. Mortgage companies want everything to look the same in a given area, making it easier to judge comparible values and deduce risk.
We eventually went with (uber) Bank of America, as they would provide financing on unimproved land for about 1% over that for improved land (e.g. standard home mortgage) which was 6.75% and 5.75% for a 15yr note at the time (over 3 years ago).
Most other places wanted rates as high as 12-13% for unimproved land! :o