how much would this transformation cost? ballpark estimate
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Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
14yIvan,
You posted in another topic about an inheritance.I commend you for not going and buying a bunch of crap with it but wanting to invest it.
I have seen some friends inherit large sums of money in the past that the grandparents and parents sweat blood and tears for them to have and did without to give them a chance at a better life.
The friend was irresponsible and lived "high on the hog" for a few years and is now broker "working for the man".
I think what you are underestimating is what it will take to do repairs correctly,the time involved,and how buying incorrectly can wipe out a large chunk of your wealth.
Not knowing what kind of existing annual return you are getting on your money is a huge red flag.You have to compare the RETURN versus the RISK when moving money around or allocating a percentage of your portfolio of investments.
If you don't you are "shooting in the dark" and might as well take a trip to Vegas and play the slot machines with your money.DON'T talk yourself into something and say "it's not so bad".That is what I am seeing from your posts and is the number one mistake of new investors.
31 Replies
- 14yIvan A.Bowling Green, KY · Member since 2012 · 17 posts · 0 votesOP
Originally posted by Karen M.:
I was going to send a private message to go over the answers to the questions, and ideas. You will need to accept colleague request though. However; I'd say, get moved back to the U.S. and settled in before you make any decisions concerning investing.It would probably make more sense for you to rent a house for you to live in, and not jump into a room mate situation with the hope of them helping pay mortgage.
The deal you are telling us about isn't a deal. You can set yourself up by using your inheritance wisely, investing in solid projects. Give yourself some time, and sock your money away while you learn. There's no rush, there are always deals, and once your money is gone, it's gone.
ok, I acceptedm but I would rather you post here, since the point of a forum is for other people to be able to read old threads and learn. I think we're cheating other people like me if we PM. why do you think this isn't a deal? it's a 15 minute walk to the center of the local university, I wouldn't have any trouble finding tenants.
- Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes14y
Ivan A. Unless the houses in the neighborhood are worth quite a bit more than the one you're looking at, there's no justification for the improvements you want to do. Now if you are looking to buy a house by the university for your personal use, and want to have good potential for renting out rooms to help you pay the mortgage payments, it may work for that reason. But, as an investment, I'm not seeing it.
- Wholesaler · Salt Lake City, UT · Member since 2009 · 1k+ posts · 401 votes14y
Ivan
Glad to hear your not planning to blow through your inheritance. I had a friend who inherited $1.5 million in 1962 and in early 1964 he was broke and in debt. Do you know how badly you had to do things to blow that much money back then in less then two years?
Sort of reminds me of a part Tony Randall played in a movie where he says he is a total failure because he inherited 12 million dollars and still only has 12 million dollars. That is doing better then many.
The question I have is you say your brother can't inherit yet because he is not 21 yet. Is that because of the terms of the inheritance or is there a state out there that doesn't recognize 18 as a legal adult, if so which one?
- 14yIvan A.Bowling Green, KY · Member since 2012 · 17 posts · 0 votesOP
Originally posted by Brian P:
IvanGlad to hear your not planning to blow through your inheritance. I had a friend who inherited $1.5 million in 1962 and in early 1964 he was broke and in debt. Do you know how badly you had to do things to blow that much money back then in less then two years?
Sort of reminds me of a part Tony Randall played in a movie where he says he is a total failure because he inherited 12 million dollars and still only has 12 million dollars. That is doing better then many.
The question I have is you say your brother can't inherit yet because he is not 21 yet. Is that because of the terms of the inheritance or is there a state out there that doesn't recognize 18 as a legal adult, if so which one?
Jesus, I'm really curious how someone could spend that much money that fast. I can't even imagine how that would happen, I'd love to hear the story.
anyways, apparently my grandma blew through a lot of inherited money when she was younger, not sure how, or how much but that's what I heard. she wanted to make sure we didn't make the same mistake so she set up her will to where we receive 100k at 21, 25, and 30yrs old. she's smart, since it is a lot of money. I wouldn't blow money on mountains of cocaine or anything but I could definitely see myself making bad investments, or other well-meaning mistakes. My brother received the same deal. It's kind of funny buy my mom is divorced from my dad and his mom left him $10,000 and my mom $300,000 LOL... he cut off communication with her, didn't visit her or even go to her funeral. and my mom took care of her and visited her for years even though there was no family connection anymore "due to the divorce". none of us had any idea she was wealthy. we knew she worked at one of the major beer companies, but we just assumed she was a regular employee. I guess she was pretty high up in the company. This just shows that it can really pay off to treat people well.
- Investor · Asheville, NC · Member since 2012 · 184 posts · 76 votes14y
I strongly agree with another poster- wait until you are here to do the renovation! There is just too much to go wrong- even if you agree on everything ahead of time.
I would say wait until you get here to buy, but it seems like you might already be buying this place? Who knows if you even ever get back to the US? Example: your girlfriend gets pregnant and she wants to stay near family. Or a great job turns up in Berlin to teach Korean at a business school. I know people who have had similar things happen. You can find decent investments that are much less location dependent.
Assuming you have made your mind up to buy, still wait to do the renovation (other than a safety issue). Then get back here and dive in. Maybe you could visit some generous rehabbers on this forum and see their work before you start. It certainly would save you more money and worry than visiting them and taking them to dinner!
I'm all for you doing some work yourself (that doesn't call for permits). That way you really 'get it' if you move forward with re investing in the future.
Ok here's what you asked originally: I looked at the picture- it would take me min 30K for a new kit and bath that look like that (ikea), all interior surfaces fixed up, and misc electrical and systems changes. Could easily be double if hvac, roof, structural changes, rot, water and sewer line, paint outside, if locality required a c.o. Who knows, too many variables. I do only a bit of the work myself. If I did every bit of non permitted work myself it would take 5 times as long (costing me money), it would not be as nice, and I would save only 5k.
- 14yIvan A.Bowling Green, KY · Member since 2012 · 17 posts · 0 votesOP
Originally posted by Kama Ward:
I strongly agree with another poster- wait until you are here to do the renovation! There is just too much to go wrong- even if you agree on everything ahead of time.I would say wait until you get here to buy, but it seems like you might already be buying this place? Who knows if you even ever get back to the US? Example: your girlfriend gets pregnant and she wants to stay near family. Or a great job turns up in Berlin to teach Korean at a business school. I know people who have had similar things happen. You can find decent investments that are much less location dependent.
Assuming you have made your mind up to buy, still wait to do the renovation (other than a safety issue). Then get back here and dive in. Maybe you could visit some generous rehabbers on this forum and see their work before you start. It certainly would save you more money and worry than visiting them and taking them to dinner!
I'm all for you doing some work yourself (that doesn't call for permits). That way you really 'get it' if you move forward with re investing in the future.
Ok here's what you asked originally: I looked at the picture- it would take me min 30K for a new kit and bath that look like that (ikea), all interior surfaces fixed up, and misc electrical and systems changes. Could easily be double if hvac, roof, structural changes, rot, water and sewer line, paint outside, if locality required a c.o. Who knows, too many variables. I do only a bit of the work myself. If I did every bit of non permitted work myself it would take 5 times as long (costing me money), it would not be as nice, and I would save only 5k.
I'm in the US temporarily actually, I looked at some but I'm not planning on buying soon. me and my girlfriend are considering moving here so that I can finish my degree and that would be when we would probably undergo this project. thanks for giving me a realistic estimate, it's more than what I thought it would be but that's what I needed to hear, I don't want people giving me false hopes. thanks :)
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