Help me design a strategy to buy this house!

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snowox
Posts: 177
Joined: Wed Nov 08, 2017 9:17 am

Help me design a strategy to buy this house!

Post by snowox » Thu Aug 09, 2018 12:59 pm

So I have an opportunity through family friends etc... get a home well undervalue but I dont want to buy it unless i can take alot of the stress out of the purchase because I would want to sell my house. So I am just interested into the formalities, math etc.. of what or how someone would make this advantageous but realistic. If he walks a way or gives me the F-bomb so be it.

Bottom line I am willing to pay up to 550k for the house max. So lets use that number. The house I live in now Should sell quickly as its in a HCOL area but in the price range where houses are selling in a week. And I should walk away on low end 275k after all fees.

I can do all sorts of things but this was what I came up with stupid or smart as it might be so willing to hear as much advice as possible.

The one thing is I am having 2 knees replaces and perhaps a hip which is why I am trying to cover as much time as i can in case incident or? Also want to be in a position to allow in case during this time market crashes to not use up all my cash.

So my thought was this.

The house would rent for 4k a month so put 2 years down or 96k 100% credited towards purchase price.

Put into writing to have up to 2 years to close on house max or 60 days from when my current house sells whichever comes first.

So using round numbers that would be 550k minus say 375k Leaving a balance of of 175k. By doing this if for whatever reason it took that long and or I wanted to do things to the house before I moved in I would still have up to 4 years of living expenses covered without touching my investments.

So i was thinking I could in addition during the two years pay 2k a month which would be another 48k if I went the distance.

So this kinda gives you an idea.

I am wondering obviously ways to do it to tax advantage to me or so it doesnt cost me more money etc...

I will check back every couple hours to see replies as I would need to get going on this.

The Owner is an engineer and has documentation of every dime he has ever put into it and also its in very good shape. All that would be left to do would be a kitchen remodel and paint and carpet in certain rooms if we chose. Nothing would need to be done if one didnt want to but if we stuck 50 in it the return back would be at least double.

Thanks

Jags4186
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Joined: Wed Jun 18, 2014 7:12 pm

Re: Help me design a strategy to buy this house!

Post by Jags4186 » Thu Aug 09, 2018 1:01 pm

You can put in an offer to buy the house contingent on selling your current home first. You put your home on the market, when it sells you can pull the trigger on his home. If your home will sell in a week I don't see why this is all that complicated?

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sergeant
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Re: Help me design a strategy to buy this house!

Post by sergeant » Thu Aug 09, 2018 1:06 pm

I'm not sure what you are asking? I have never heard of a two year closing period, I don't think anyone interested in selling their home would agree to it.
Lincoln 3 EOW!

snowox
Posts: 177
Joined: Wed Nov 08, 2017 9:17 am

Re: Help me design a strategy to buy this house!

Post by snowox » Thu Aug 09, 2018 1:14 pm

sergeant wrote:
Thu Aug 09, 2018 1:06 pm
I'm not sure what you are asking? I have never heard of a two year closing period, I don't think anyone interested in selling their home would agree to it.
Jags4186 wrote:
Thu Aug 09, 2018 1:01 pm
You can put in an offer to buy the house contingent on selling your current home first. You put your home on the market, when it sells you can pull the trigger on his home. If your home will sell in a week I don't see why this is all that complicated?




I'm not explaining it right. I know I can sell my house quick but I want time to do a "slow move" so I can do some work before we move in etc... But thats why I was saying if in two months I sold it then I would start the close then. Guess a lease to own till I am ready to move in. If that makes more sense.

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sergeant
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Re: Help me design a strategy to buy this house!

Post by sergeant » Thu Aug 09, 2018 1:19 pm

No, don't do that. Just rent your "sold" home from the new buyer for a couple months. Too much can go wrong with doing a lease to own as you describe it.
Lincoln 3 EOW!

snowox
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Re: Help me design a strategy to buy this house!

Post by snowox » Thu Aug 09, 2018 1:27 pm

sergeant wrote:
Thu Aug 09, 2018 1:19 pm
No, don't do that. Just rent your "sold" home from the new buyer for a couple months. Too much can go wrong with doing a lease to own as you describe it.


Thats a good idea! makes sense. Thanks

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