Buying a house - zoning problem

[northside lurker]

So the owner won't sell it on land contract to an obviously willing and motivated buyer, but would fix it up and rent it out and take the risk that the renter will trash it.    Someone is not thinking clearly.

I agree.

[Rick Rowlands]

So the owner won't sell it on land contract to an obviously willing and motivated buyer, but would fix it up and rent it out and take the risk that the renter will trash it.    Someone is not thinking clearly.

[northside lurker]

A final update on this house.

After the owner said he didn't want to do any kind of land contract, I went to another bank to pre-qualify for a "Fannie Mae Home Style Renovation Mortgage."  As part of this program, I needed to have a contractor walk through the house, and generate an estimate of cost to repair.  If the purchase price and the cost to repair add up to less than or equal to the house's value AFTER the repairs are made, they would lend me the amount of the purchase, plus the amount of the agreed upon repairs.

I told the owner how this works, and let him know that I would need access to the house for the contractor.  I followed up with him tonight, to make an appointment for the contractor, and he told me that this was becoming too much trouble, and he didn't want to sell the house right now, unless someone was able to make a simple offer. (cash or a conventional mortgage)  Instead, he said he will have the repairs made himself, and will rent it out next spring.

I'm still interested in buying and fixing up (if necessary) a house in the Wick Park Neighborhood, but I'm giving up on the house this thread was made for.

[northside lurker]

Thanks for the thought, but that's out of my target area.

[Youngstownshrimp]

Westside,

See if this is a better deal for you.  2122 Elm Street on two lots, a probate sale, I have not seen the inside, I'm sure it needs some work, overall not bad.  Message me if interested.

[northside lurker]

I can't believe it's taken this long, but I finally got in touch with the owner this evening, and he told me that he isn't interested in entering a land contract.  He has been advised by his attorney not to enter into a land contract deal.  The specific reason was because the purchase price is so low, causing the down payment to be too small to cover the cost of foreclosure if I would default.  But, generally, the attorney is against land contracts because the law favors the home owner, and a land contract can't be written solid enough to protect the seller.

I haven't quite given up yet, and am exploring other options.  I just have to figure out what they are...

[AllanY2525]

Good point, Ron...and Rick.... well stated!

The other advantage is that when the balloon payment does come
due, the house will already have been renovated - thereby giving it
a higher appraised value when the owner applies for re-financing.

[Youngstownshrimp]

Rick has a strong point, if the the seller finances the house with a balloon in three years and amortized for twenty, your payments will be so low that you can apply the rest to renovating your house.  Once you approach your balloon, when you seek a mortgage, it will be easier to secure because you now will be REFINANCING in lieu of an outright speculative purchase.  I have done this many times as an owner financing.

[northside lurker]

If the seller holds the note then he makes the interest and not the bank. Where else can you get 4.25% interest right now?  On a 10 year note he'll make an additional $3,400 on the sale.  On a 5 year note he'll make $1,700.

That's a good point.  The person who told me about a purchase money mortgage suggested a 1-2 year term, at which time I'd refinance with a regular bank.  But, the owner may be interested in a longer term to make more interest.

Oh, I wanted to ask...

If you buy this house will you change your screen name to "Northsider"?

Maybe, or I might just change to the other internet name I've started using on other forums: JRC.

[Rick Rowlands]

Oh, I wanted to ask...

If you buy this house will you change your screen name to "Northsider"?

[Rick Rowlands]

If the seller holds the note then he makes the interest and not the bank. Where else can you get 4.25% interest right now?  On a 10 year note he'll make an additional $3,400 on the sale.  On a 5 year note he'll make $1,700.

[northside lurker]

Well, I have an update.

The letter from the city did help, and the bank appraised the house.  Unfortunately, it only appraised for $15k.  And, even if the owner and I renegotiated a lower selling price, the bank is unwilling to lend money on the house because it needs too many repairs.

I'm not done yet, though.  I'm going to ask the owner if they are willing to act as the lender.

[Youngstownshrimp]

I apologize, my post was intended for "Youngstown neighborhoods topic."

[Youngstownshrimp]

Finally academia is speaking the truth and more voices are being heard, until Ytown allows cottage industry and not just pie-in-the-sky tech jobs to come into our neighborhoods the City will continue its downward spiral.  Where are all the urban agriculture projects that we keep celebrating and no, a little garden on an abandoned city lot is not going to infuse jobs.  We need a concerted effort to farm on a large scale, farming is the largest industry in Ohio, it can be the largest industry in Youngstown.  We need to get educated.

[DefendYoungstown]

Westsider:

An appraisal is scheduled to be conducted on the home I'm looking on Elm as well.  I'll keep you posted as to what comes of things on my end.