I spent Wednesday afternoon going out around Ednor Gardens, Bel-Air/Edison, and Better Waverly, looking at houses. I looked at ten, and got some good ideas about what I want. I saw some that were beautifully rehabbed, at around $139,000 in both cases. I saw one that was beautifully rehabbed and on possibly a bad block, because it was only $104K. And it was sort of an old woman house. I saw some that will need way too much work than I can afford or do, but that had great character.
I sort of fell in love with the last house we saw. It was rehabbed by a local organization that tries to sell homes to teachers, fire fighters, and police officers. You're supposed to live there for 1-3 years, and the buyer is eligible for a $10,000 deducation on the principle if they do. It's also $139K, which is just a little bit more than I want to pay. I've heard that you should offer 20% below list price in this market, and that would definitely be in my price range, but I'm uncertain if this non-profit community organization takes deals (the home is already offered below market value).
The holdup now is the downpayment. I've had a hard time securing my W2 from my second job. It was apparently sent to my old address, and it was not forwarded to me. I went in there last night to get a copy of it, but the boss had left it out for me, but had accidentally ripped it up into a million pieces. We dug through the trash and tried to piece it together, but were unsuccessful; he's waiting for another copy to be faxed to him from the company that handles payroll. Pretty annoying. I'm expecting a big tax refund this year, big enough to handle the difference between my current savings and 3.5% downpayment.
I'm also looking into FHA mortgages, and am looking forward to speaking with a Housing Counselor in the next couple of days. I just found out that you could talk to one before the actual class (the Live Baltimore website suggests that it's the other way around, so I was waiting for the class, which I couldn't get into until Feb. 21), so I'm going to start calling around tomorrow.
It's a whirlwind. I also haven't slept more than 4 hours in any night this week, as stress and a respiratory infection with legs and a lack of excercise over the last two days all seem to be whirling around and keeping me awake. I'll try tonight.
Rowdies at Dawn
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I made the mistake of renting a place smack dab in the one section of
Prague frequented by 20something beer-chugging loudmouth apes. These two
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4 comments:
Don't be afraid to slow down-there is always a great house out there, and more will come on the market by April. Take it easy, there will be more than enough work once you buy, move, and "fix up".
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Have you looked into the HUD Teacher next door program? It's on the LIVE Baltimore website, along with all of the other resources. Go to the Incentive Programs page, and then go down to the Special Purchase Loan Program section.
You basically get a screaming deal on a house - 1/2 off - if you agree to live there for three years. If you don't make it through the full three years then it's just like you bought it at the regular price. It just has to be in one of the revitalization zones.
Anyway, I just checked through the link available on the Live Baltimore site and it looks like there's a bungalow at 5100 Walther, 3 beds, 2 baths, over 2000 sf, listed for $99,000. I'm not sure if it's in a revitalization zone, but if it is that means you would get it for $50,000. It might need some work, but you shouldn't be afraid of that. Live in there for three years, fix it up while you live there, sell it when the market picks back up, it'll be the best investment you'll ever make. Just look at what else is out there right now for $50,000. It's a no-brainer.
Do you remember a red-headed English teacher you used to work with? She left within the past 4 years, not sure when exactly. She used that program, I think, after she sold her old place and when she bought a new one after her divorce. You could always ask her about her experience, unless you know her story already. I believe she bought something in the Bel-Air Edison area as well.
I'll tell you right now that a Realtor will try to talk you out of buying one of those because it's like a half-price commission for them (since it's a half-price house) but I can tell you that as long as the place is not a complete disaster, it is definitely worth a look.
Everything else on the list right now appeared to be rowhouses, but that one really popped out. I don't know if you'd want to live on Walther (again) with city busses going past, but with a deal like that, I don't know how you could go wrong.
Like Aaron said, you can also wait and see what else pops up. You do want to make a move probably by the end of this month if you want to be in it by the beginning of April - you've got to give yourself at least 30 days to close - to get the loan done, the inspection, etc. - so don't drag your feet too much. It really is a good time to buy - hopefully you're snatching something up at one of the lowest points we'll see in years.
Good luck - glad to hear you're finally going to get your own place.
FWIW, there's no bus on Walther or Reukert, but the 44 is a block north on Echodale. If you can get a house on the edge of Hamilton for around $50K you have found a killer deal.
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