Need some real estate advice. What should I do here?

[streetroc]

I currently rent a three bedroom house. I've been here for several years and I really like the house and the neighborhood. I don't want to move and I'd like to stay here if I could. Over the past few years the rental company told me that they won't sell the house to me. However earlier this year they indicated that it might be a possibility. The house needs a lot of work though. Rotten wood, sinking foundation in the back, kitchen needs to be redone, bathroom needs to be redone, needs a new septic system, and lots of smaller stuff. Since I moved in well before 2020 when the real estate market got crazy my rent is very cheap compared to the surrounding area. If I wanted to renew my lease again it would be $1,200 a month which is nothing for me. I have a very good income, a decent bit of savings, and excellent credit. I don't think I would have any trouble getting a mortgage if I wanted one. I don't want to throw money away on rent forever but I'm tempted to just sign another lease and see what the housing market looks like in another year.

What says the ODT experts, should I stay or should I go?

 

[John5757]

Man tough one there. Personally I think home prices aren’t going down much over the next year but interest rate will be going through the roof. I think I would renew your lease and look around for a house. If you can find a good house buy it and pay the early termination fee for your lease.

 

[streetroc]

Can I get a mortgage for a house that needs a lot of work and then include the cost of the repairs in the loan?

 

[John5757]

Can I get a mortgage for a house that needs a lot of work and then include the cost of the repairs in the loan?

I think it will depend on selling price vs appraisal but I’m not a real estate guy.
Maybe Realtor can help here.

 

[Jeddak]

Can I get a mortgage for a house that needs a lot of work and then include the cost of the repairs in the loan?

HKMurkure is THE mortage guy. He should know.

 

[grainchaser]

Can I get a mortgage for a house that needs a lot of work and then include the cost of the repairs in the loan?

FHA 203 (k) loans are tailored to fixer-uppers.

 

[streetroc]

What is business like for big rental companies right now? Are they hurting because people haven't been paying their rent in 2 years or are they trying to buy every house they can to hold them?

 

[Nuke And Juke]

Rents been strong and getting stronger. The problem is, as you stated, you can just renew for 1200...which is to say, you rented so far and this is the top of the market. why jump in now?

The better question is do you see urself in this place for the next 15 years?

 

[sambo77]

I wouldn't invest the money purchasing it. That will take a lot of money to fix (the foundation issues). Plus in the future if you're looking to sell it the repairs would probably be noticeable to inspectors hired by potential buyers, which may turn some away or see it as reduced value. I'm not sure of the market value of it but if it needs foundation repairs I would offer at minimum of 15% less than the taxable market value to account for costs of repairs.

 

[streetroc]

Rents been strong and getting stronger. The problem is, as you stated, you can just renew for 1200...which is to say, you rented so far and this is the top of the market. why jump in now?

The better question is do you see urself in this place for the next 15 years?

That's kind of what I'm thinking but before I signed on the dotted line again I just wanted to get a second opinion. Yes I could see myself living in this house for the next 15 years. I've already settled into the neighborhood and I really like it here. I just don't want to be a renter forever but it's so cheap compared to everything else out there and I'm still able to save money every month.