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Small Cabin Forum / General Forum / Cabin Dilemma
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hueyjazz
Member
# Posted: 9 Aug 2016 12:26
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So I got this cabin dilemma. We presently own 20 acres and a small cabin built on stilts. Second floor is actually a loft which is accessed by ladder. I don't have a well or septic but I've been very clever and run the place much like a RV so I do have a shower, toilet and sink which pump water from a tank and sends waste to another tank.

Our property surrounds a beautiful cabin which is actually a home. It's a kit cabin that has a basement, well, septic and two full bathroom, three bedrooms a nice kitchen etc.
Wife and I have often discuss that it would make a nice retirement home for us and we had commented that to the owners. Well they listed last week and they informed us of such.
My 65 age doesn't happen for another 7 years. I could actually pull off retirement in 5. We are contemplating still buying the place, keeping our old cabin as a guest house and keeping our house while we still are working. But this is going to turn us into real estate moguls with a lot of taxation. I own my house, property and original cabin free and clear. I done well in the stock market and can afford to put down 70% of the cost of the new cabin. But the daughter might get low budget weddings or a ladder when suitors come calling.
Not sure which way to go. Pull equity from existing house, get a small mortgage, or follow another path. We kind of wish this came up a few more years down the road.

bobrok
Member
# Posted: 9 Aug 2016 12:38
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*If* the property doesn't sell right away and you are willing to take that chance talk to the owners about an exclusion in their next contract for you.
Perhaps they will hold the paper or sell on land contract.
If they are of like mind and wouldn't mind selling you the property sans the realtor, bank, etc. there's a % savings right there which can take some of the edge off the price.
...and pay for a sturdy ladder.

hueyjazz
Member
# Posted: 9 Aug 2016 14:38
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I'm already written into the contract as a exclusion for the next 30 days. They are divesting of this cabin as well as their house in NY to move to their Florida property. One of them has some health issues so they are motivated to sell quick. I think the property is priced right to do that but it's hard to tell. Comparitable sales are tough as there aren't many real houses in the area. What houses exist tend to be Amish or hunting cabins and will not be as high end as this one. The closest paved road is three miles away so that detracts from the value. Plus the property is deep in the woods. Well for us the remoteness is why we want it
Our normal house is across from a park and walking distance from a major university. It's never quiet.

So I think we will pull the trigger. My wife is about to change her job from part time to full time so that will help. I may need to find a Big cabin forum

bobrok
Member
# Posted: 9 Aug 2016 14:52
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We paid a little bit more for our cabin in the ADKs than it was probably worth.
Havent regretted it one bit.
It's what we wanted. It's where we wanted it.
Go for it.
If you regret you can sell.
If you don't buy you will regret, period.

NorthRick
Member
# Posted: 9 Aug 2016 15:44
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What bobrok said. If you really like the area, that's where you'd like to retire, and you like the house - buy it.

bldginsp
Member
# Posted: 9 Aug 2016 17:09
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Like they say, real estate is about location, location, location. If it's what you want, locate the money to locate you in that location.

toyota_mdt_tech
Member
# Posted: 11 Aug 2016 21:32
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Do it, like other said, if its too much, sell later.

I had similar deal, 20 acres rigth next to my existing 20 came up for sale. I didnt need it, but told the wife, we almost have to buy it. Its undeveloped. All the land around it has has some improvements, it makes my place twice the side, we shared a 1/4 mile boundary...


Rest is history. We own it.

Do it, dont look back.

leonk
Member
# Posted: 12 Aug 2016 10:33
Reply 


If you think this is the right property for you - buy it.
Don't worry about the wedding, the grandkids will have a place to summer, that's more important.
If the people are approachable, go talk to them or write them a letter, explaining how you love their home and how you will take good care of it, but you'd like a discount. Some people will laugh at it, some will meet you halfway.
As for financing, choose the lowest interest rate and best tax deduction option. Without knowing more about your finances it's impossible to give more specific advice.
Good luck!

toyota_mdt_tech
Member
# Posted: 12 Aug 2016 21:31
Reply 


The seller can use a land and title company to hold the deed. You and him work out an agreement, have it written up, interest rates, monthly payment etc, then they hold the deed till its paid and send your payment to the title company who then sends it to the owners. Its owner contract, but held by a middleman in case of the owners are killed in a car accident etc, then you would not have to deal with squabbling kids fighting over their cut of the inheritance which would get ugly. This way, they are out of the picture. Once obligation is fulfilled, deed is sent to you.

hueyjazz
Member
# Posted: 23 Aug 2016 12:47
Reply 


Well I'm presently the leading contender for the cabin in question. They countered my offer and it wasn't unreasonable.
I can't build this place for what they would be getting for it. Part of that is location as there isn't comparable real estate of this type out there.

Financially I'm in a good position as I sold some stocks as the current contenders for US president don't put me at ease. My overachiever stocks I cashed out and my other stuff in placed in less volatile holdings. I can buy this place for cash and not get a loan or mortgage. Daughter's beau gets a ladder.

Main issue now is they listed the place as 5.9 acres. Well, I own all the property around this place and have the survey maps. Its actually 4.755 acres. Sticking point for me is not paying taxes on what I don't actually have.

KinAlberta
Member
# Posted: 23 Aug 2016 13:18 - Edited by: KinAlberta
Reply 


As long as you're not overly emotional about it, consider that you have a clearer understanding of its value than others might have. If it's a reasonable to good deal that's your advantage. Anyway, in 20 years time any little difference or overpayment may be a non-issue after inflation.

You will also have the old cabin to rent, Sell, move and sell, move onto the same property, etc. So there may be some synergy available that will justify paying a higher price.

On the acreage, something to mention to your realtor. (Why the error? Creek, water?) If you feel you're not paying anything more for less in the purchase price, then it shouldn't be a deal breaker. Maybe get your taxes reduced later.


Lastly, by many historically based measures many equities and bonds are overvalued. Have been for a few years now. Maybe economic growth will revive and make them seem cheap but where we are right now, quantitatively, equities are priced high.

bobrok
Member
# Posted: 23 Aug 2016 20:24
Reply 


Quoting: hueyjazz
Main issue now is they listed the place as 5.9 acres. Well, I own all the property around this place and have the survey maps. Its actually 4.755 acres. Sticking point for me is not paying taxes on what I don't actually have.


If there is a discrepancy it should come out in the wash when all the title work is completed. Many times this is an old error that has been carried down by deed description from seller to seller, and especially if the property has been in same hands since the old days. Be vigilant, make it known that you dispute the lot size, and visit your county clerk Real Property Tax Office to review the official tax maps.

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