help me decided if i should put an offer in on this home

[Mr_Iowa]

i found a  home on 4 acre's near me for 50K. The house is OLD run down and nasty, but you "could" still live in it i guess. It has a well, septic (need to find out more about this to see if it up to code) and electric.  the place is pretty creepy and in the garage there is a 16X16 room made out of concert with no way into other then a window from the outside of the house.  there is also a small hole (a little bigger the a 5 gallon bucket) that is completely round going into the foundation of the house into a room that is 3-4 feet by 8 feet or so. \

there are no other usable buildings on the property, its run down and over grown. That really excites me, because most of the property has never been touched. 

people (my parents mostly) think i should live in the house and just fix a few things up. However i would much rather put up a mortan building, and make it into a livable home. i think i would be able to reuse windows from the old home, furnace and water heater (brand new) some of the old wood, doors and the list goes on. i would be happy with around 800sqft for a home, and feel like for 10-15 grand i could erect a new home.

i just started a new job (well got back on from where i got laid off from in 2008) and tripled my income to around 40-50k depending on how much overtime I work. I'm not sure if the bank would allow me to take out more then 50k on this home, i'm sure id have to get it appraise first to see if it had equity. right now id like to be able to get the home for around 40k but still take out 50 and start building a mortan building home. Am i crazzy?

[Mr_Iowa]

if you what to google map the property its "1962 Quail Ave, Tripoli, IA"  its on the east side with all the trees :p

[Rob_O]

Your description makes me think of this


If you tear down the old house you will probably have to put in a new septic system, if that's the case your cost estimates just went up another 5K. Find out for sure, and plan accordingly.

[flyingvan]

Obviously no one can really decide this for you, but here's what I consider befire buying a property (I've bought 5 so far)
First, do you love the area?  Does it have a good feel?  Will you enjoy being there regardless of the living situation?
If you ever want to sell, will other people be drawn to the property for the same reasons as you?
How are the utilities---not just septic, but water quality, road access, electricity, phone, cable?
What's the surrounding area like?  If you can't stand yapping dogs, are there any nearby?  If you don't like the smell, are you moving next to a chicken farm?  Are you familiar with the weather challenges all four seasons---winter snow or flooding, spring pollen if you have allergies, summer bugs, fall cleanup and fire hazards?
Are there other potential building sites on the property?
How far away is the nearest hardware store?
   We're living in the house we bought as a fixer upper---tore it down to the studs and re-built old crappy stuff.  When we were 'done' (it's a myth) we bought land at the end of the street bordering the state park and built from the ground up---MUCH more rewarding than rebuilding old stuff in my opinion.  Fast forward to the current project---getting utilities was more than half the battle, so if this property has all the necessities, it's just a matter of focusing on the structure. 
   Finally, about sweat equity----what a great way to get ahead.  If you were to work enough overtime to hire someone to build for you, you'd have to pay more and more income tax against your labor.  Put that labor into your home, and you directly impact your net worth without the tax burden (until you sell--damn capital gains!) but this is A LOT of work.  Building even a small house takes an entire crew of skilled professionals a whole season---doing it yourself, on a limited budget, out in the woods, with limited help/skills/tools is a huge commitment.  It will damage your body, take longer and cost more than you originally figure.
  But it's worth it.

[rick91351]

One - do not plan on reusing anything from an existing building.

Second - If that is a cheap price it does not necessarily make it a good buy.  It only makes it cheap, and some times cheap is not cheap.

Around here old houses you could just have the fire department burn, or you could burn them.  Now they have to be demolished and hauled off to the landfill.  So figure in a crawler and maybe a backhoe or excavator and truck time and dumping fees.  You might not have to now, but as in most places if it is not there - it is coming.

Septic can be a problem especially if it is an old to small drain field.  Drain fields do have life spans and many are not happy with new houses.  Some of them were 'spect' out when hygiene was a lot different, as was clothes washing.  The old Saturday night bath was good for all week, and a lot of washers dumped water in to a sump or gray water drain. 

Unless the well is fairly new and up dated it most likely is a shallow well and needs to be tested for fecal bacteria.  That is not a lot of money somewhere between $100 to $200 unless your state lab is still doing it for free or a in state fee.

Third:  reread flyingvan's post there is a ton of wisdom there......

       

[hhbartlett]

Above is all good advice. I would also be concerned about all the surrounding farmland for chemicals, fertilizers, etc.

You have to think of it this way. Is 4 acres of land worth $40k to $50k in that area? Forget about the house, buildings, etc., because there's no value in them, and in fact they're more of a liability than anything. Seems like alot to me, but I don't know land values in your area.

[hpinson]

Is it the land with the patch of Trees to the east of Quail Ave?  Looks like there is potential there.  Can't really tell anything about the house from the air photo.  Sometimes derelict structures can be used to your advantage, as most would not want to take on demolition-- a bargaining chip when making an offer?  But demolition takes time away from other things you could be doing.

With all that agriculture surrounding, you might consider a well water-quality test to find what lurks in your water supply.

[Mr_Iowa]

My realtor told me she could order a water test fairly cheap, and just take a water sample from the sink in the house. Not sure if it would be a quality test as i've never had to do one before. The well it's self looks to have a bunch of new hardware around and by it (what it all is i have no clue) 

and yes hpinson it is the land to the east, it also has two cement silos on the property. i would say land around here goes for around 2500-4000, but most of the time you see that pricing on 200+ acres. The land to me is worth around $12,000, the well is also worth 10,000 (if its in good shape) and depending on septic $5000 (im guessing about these prices, but i've done a little research). Add that all up plus the fact that small acreages are had to come by in my area for this price and i'm at around 37,000 for the property. 

also i do really LOVE how thick the trees are, its hard to find in my area. location wise its ok, its defiantly not bad and only 10-15 min from work. The only problem i can see with it is I'm a dog trainer and would like to build a small kennel incorporated into the house (i work in a factory now, but dogs are my life) business in this area wouldn't be good at all. however if i could train 2-3 dogs a month i would be happy, my program would cost around 300 a month. that would be extremely cheap for how good of a dog trainer i am, and help to supplement my income.

also if your wondering why i want my own home its because of my dogs, no one will rent to me for under 800 a month! my parents are pushing me to get my own place, and honestly i need to move out. I've been living with them for the past year (moved back in when i can home from Texas) Its just time.

[Tickhill]

From above it looks to have well defined property lines, but a survey would be the first thing to get done or at least verify corners with description of the property (deed). I would definitely get the well water checked but by now there may be community water available, this would be a quick and easy option until the well could be tested/cleaned. Love the trees, glad you explained the 2 round white circles in the back yard, put roofs on those and that could be your kennel?
Tickhill

[hpinson]

You might want to check this thread on water testing.

http://countryplans.com/smf/index.php?topic=11258.0

It gives you an idea of what you can test for.  Cost from a good lab is something under $400 (at least around here) for this panel.  Not sure you would need all this, a lab could advise you and help you interpret results. Contract your local Cooperative Extension Service or State Ag College for recommendations.

And having that municipal water system at hand is a great backup in case there is a problem with the well.

Testing from the sink is good.  You are seeing the whole system, and not introducing any contamination into it.  Testing has to be done under sterile conditions, and you lab will advise you on how to use their kit.  If theres a problem though you have to do a bit more detective work-- for instance if there is lead, what is the source-- pipes in the house or something else.  If the well has been sitting for a while there is a good chance it has Colo-eColi contamination, and can be shocked for treatment, a procedure that you tend to have to repeat once the bacteria is established.  I was just told by a water engineer that something like half of domestic wells test positive for this.

If you make an offer, try and get the seller to pay for the Survey.

[Bob S.]

Have you thought about making the silos into a house?

[flyingvan]

Like this? http://www.melicio.com/del/newblasttemplate/grain_silo.html

[Bob S.]

I think you could build a structue between the two silo's. And put the stairs in it with doorways into each silo on each level.  I can envision a really neat home.

[NM_Shooter]

Take a hard look at the roof and look for any signs of water damage.  You don't want to live in a petri dish that is growing mold.  Sometimes the structure on the property actually detracts from the value of the property.