Thursday, 22 October 2020

We Bought + LIVED in a $47,000 House | Before + After Renovation Pics | JEN TALKS FOREVER

hi I'm Jen I want to talk about the previous house I lived in that cost $47,000 yeah you heard that right it was 47 grand 47 K 47 GS and I want to talk to you a little bit more about you know why we decided to buy a house like that what's it like and also how do you get that sort of deal so while I live in Atlanta now previously my husband and I lived in Florida and back in 2009 we were looking for a house together previously I don't a condo in Texas and I actually did make a little bit of money on it before there was that market crash of like 2007 I literally sold my house in May of 2007 and then it crashed several months later so I was extremely fortunate and with real estate my husband James and I have just been very we've had very very good timing with things overall one thing you should know about us is that we like to live below our means so we had a goal of having a house payment that we could survive and afford on only one income so if one of us lost a job or something happened to one of us that we could still live in the house be able to afford the mortgage and not worry about losing our shirts so we were looking for short sales and foreclosures in 2009 we had a great great realtor and she was amazing and she actually helped us find this short sale and we paid forty seven thousand six hundred dollars so let me tell you about the house and I do have some before-and-after pictures so we're gonna get to that the house was built in 1955 it was more of those Florida bungalow styles it was a two-bedroom one-bathroom house the bathroom was pretty tiny and the second bedroom the previous owner had added on a screened-in porch so the second bedroom actually has a sliding glass door in it so at that point I wouldn't even consider it a bedroom plus it was absolutely tiny the real bedroom the master bedroom wasn't anything too really right about either but a good thing is that the house had no carpeting it had tile throughout and laminate flooring it had been somewhat renovated previously but the work had been pretty subpar if you're buying a house like that just know that if you get a great deal on it you're probably gonna have to put some sort of sweat equity into it and do a lot of cleaning we actually spent a few months trying to get it ready to move in before we actually moved in it needed a lot of cleaning and actually had some termite issues so we had the house tented and we just did we tried to do a lot of painting and just general I don't know cleaning deep cleaning before we even got in there so we lived in the house for about we owned it for about four years and in that time we did several pretty pretty cheap but very labor-intensive renovations my husband James pretty much completely did redid the kitchen we also redid the bathroom and he put in some really beautiful finishes he did a black granite floor since it was the only bathroom we wanted to be nice he also did an overlay in the shower he put a very nice like solid surface palette panel in it so it looked nicer and we painted the whole house we had the outside painted and we also added the washer dryer and when we moved in it actually did not have a condenser unit in it someone had like taken it so we did have to get another AC unit although at least it did have the ductwork so let me talk a little about the pros and the cons of taking on this type of project this type of house so obviously one of the huge benefits is a very low mortgage I think we put about five thousand dollars down on the house ten percent and our mortgage payment was like five hundred and thirty dollars in fact at one point our property taxes were three hundred dollars for the year for the year so our mortgage and if you're not familiar with mortgages the payment has your like property insurance rolled into it and some other your taxes so so the mortgage company actually puts into an escrow account what you need to be paying in taxes and what you need to pay for homeowners insurance and it takes it out of it so that five hundred and thirty dollar a month payment includes all of that the only thing it didn't include I believe was flood insurance I believe we paid that separately I can't remember off the top of my head because we lived in Florida the flood insurance was fairly high it was $1,400 a year but you know what that's that's the breaks of living in Florida so that was all right so it was definitely a lot cheaper than renting at the time rent in the area we lived in was between $1,000 to $1,200 for a decent two-bedroom apartments so we were getting a pretty good steal of the deal we did have some maintenance to the house obviously there's a lot of things with homeownership that comes with it that you don't have to pay for when you're living in an apartment and also because the house was so old it did have like zero insulation so we ended up having to do some things you can add insulation to old homes you can get it put in after the fact and it will actually significantly help with your utility bills so the utility bills in that place we're actually fairly high because of the age of the home but again the mortgage was so low it ended up being pretty okay even then so that are some those are some of the pros and cons of living in a really old house obviously if you're trying to get a good deal on a house not all of them are going to be old but a lot of those properties that are very low priced are probably gonna be a few years old so there is a lot of unknowns about those houses there can be definitely problems a lot of homes in the south have termite damage or mold damage and that's definitely something you should look for if you're looking to buy a house but I'm actually really happy that we did not get more of a mortgage than we didn't bite off more than we could chew that was definitely a very manageable amount of debt for us and we also have student loans which I'll talk to talk about in some future videos but because of that we wanted to keep our mortgage as whoa as possible so if you're a young couple or if you're a young person and you're looking to buy a first home I would tell you this don't don't necessarily think you need to buy the most expensive house you can I know it's gonna be very appealing especially when you see all these new pretty homes custom builder homes that you know cost half your take-home pay but just think about it what happens in the worst case scenario what happens if one of you loses a job what happens if you lose your job or you get sick and cannot work and cannot afford your mortgage anymore we personally like to keep our mortgage at about 10 to 15 percent of our take-home pay that is an amount that gives us a lot of breathing room and flexibility and you don't know what's gonna happen in the future maybe you want to make some changes in your life and your mortgage payment doesn't make that possible so that's something to think about the other thing to think about is getting a good deal and putting that sweat sweat equity in there it means that you could possibly make money on that property and we actually did my husband did an absolutely amazing job with the renovation the realtor said that the kitchen looked like a three hundred thousand dollar kitchen and we got some cabinets from cabinets to go we got some new appliances the one thing we didn't do for this particular home we did not upgrade to a solid surface countertop and that's because the neighborhood we were living in wasn't very high-end if we were marketing a $200,000 house we definitely would have put in some sort of solid surface countertop but the neighborhood was a very affordable one so buyers in that area weren't going to necessarily be looking for that feature and we ended up selling the house for $85,000 which was pretty awesome we did put some money into it when it's all said and done I think I estimated we put in about eighteen thousand dollars worth of appliances you know renovation costs and the air condition that also includes the air condenser unit so all-in-all I think we sunk about eighteen thousand dollars into it that also includes the tenting for the termites but you know walking out of the deal I think we pocketed about thirty-five dollars that certainly wasn't bad of course you have to pay your realtor's commission and other certain costs for closing but we were very happy with that amount and at least we felt like living there gave us a bit of a financial leg up and we actually used that money from the house the proceeds we used it to pay off one of my husband's student loans so I'm going to be talking about some of these house stories and future videos so if you enjoy hearing about this sort of thing feel free to subscribe to Jen tops forever and also let me know what else you'd like to talk about but for anything and I'll see you next time

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