The housing is just outside the former Grissom Air Force Base in central Indiana. The housing is, well, an interesting story. Back when the housing was built, someone got the plans mixed up. A base in Florida got the housing Grissom was supposed to get, and visa versa, we got theirs. They got the better housing, Grissom got the worst.
The housing section where I live, as built, is not worth much over $12,000 - $15,000. The plumbing is substandard, the wiring is over 50 years old, and there is very little insulation built into the structure. However, when the housing was opened up, the local realty association demanded that any houses that were sold were not be sold for less than $30,000 so their market wouldn't suffer.
Well, folks in Miami county all see how that worked out. Now ALL THE HOUSING in Miami county is undervalued. I laugh in spiteful ridicule because when the realty association pushed through their request I stood up to them and told them they were wrong to their face and they were inviting disaster. I hate to say I told you so.....................
The market value of the home is priced between $10,000 - $12,000 tops. That's all the physical structure is worth. Honestly, I would say the house is worth no more than $7,000 - $8,000 but that's because I have access to the blueprints and I've seen how they were built and maintained. Not good.
If the houses are all that bad, then you’d really be unwise to get involved in trying to own one. You couldn’t sell it again for the amount of money that you’ll be paying on it. As time passes, you’ll have to spend money to keep the place shored up. It’s one thing to try to restore a fine old house that has good bones, but this place, you say, was crappy from the first day. It’s going to be a money pit.
This is just a very bad idea. Consider yourself lucky that you’ve had nine rent-free months to get your life together and refresh your savings, and forget this “deal.”
Even if you had the down payment, a bank or mortgage lender still might not place the loan. They do an inspection beforehand, and poor condition, structural problems, or serious building-code violations make them reject loans.
Count your blessings.
Man! Talk about a depressed housing market. That’s worse than Detroit. What were you paying in rent? What are the annual property taxes?
I would not buy unless tax values are in line with actual market values. I was reading on other threads that 42 percent of homeowners in Detroit do not pay their taxes. Why should they? The taxes are higher than the home is worth. And the city has no reason to foreclose.
Being that you are in a severly depressed housing market, I have to assume other markets like the local economy and job market are down too. Look. You’re already getting a free ride living rent free. Continue to sock away money you would be paying for rent and keep living there rent free. I imagine the bank is happier having you in there to maintain the place rather than having it sit vacant.
I just don’t see this as a good buy. And as I’ve said - you are already money ahead living rent free.
God Bless.
Guess I should have read better. I thought you said it was worth $53,000. With the added information I have to ask why would you want to buy it? It sounds like a money pit. I’d spend $5,000 on an RV before I bought the house.