Obviously, my wife and I will get a home inspector and other professional help on this as well if we decide to move forward with it, but given the amount of architecture and building enthusiasts on this board, I'm not above hitting up the Internet for free help before hiring professionals.

 

My wife and I may be considering buying a bank-owned fixer-upper in Akron.  I say "may" because all either of us has done is look at it from the outside, and it clearly needs work; I have no idea how bad it is on the inside.  We probably have the budget and the credit, but a lot depends on whether the typical foreclosure renovation budget (for a large home) is normally in the $20,000 range or the $200,000 range.

 

Has anyone else done this and have general advice or lessons learned to share?  Any sites people know that you think give good advice to people just starting to consider embarking on such a venture?  General senses of the budgets involved in REO restoration?

 

(I'm actually surprised we don't have a thread on general renovation advice and budgeting already, or maybe we do and I somehow missed it.)

I don't have experience renovating a bank owned home, but I have done improvements to my 100 year old house (or I should say I helped my dad do them).  That said, I think you probably need to give more info on the house you are looking at.  I think size and neighborhood have a lot to do with it.  Is it 1,000 sf or 3,000 sf?  If it is in a higher end neighborhood you probably want higher end finishes like granite counters in the kitchen.  I know you have not been inside it, but does it have water pipes?  Furnace still there?  I have been in houses that were completely striped of all pipes and even the furnace.  How does the exterior look?  Does it need to be painted?  Roof? 

First, congratulations on getting married! You thought you could pull one over on us by switching from "fiance" to "wife" without saying anything...not so, buddy!

 

As for your question, I am no expert, but I know someone who bought a historic mixed-use building (an architect, mind you), and only after getting elbow-deep in renovation (tearing the place apart and whatnot) did certain structural issues become apparent. So my advice would be to expect the unexpected, since even a long-practicing architect, who hired a trusted engineer to examine the property, can be caught off guard with the extent of work necessary.

 

I get the impression this is possible because you can't look at the structural bones of a building you haven't already invested in, since it requires some destruction.

It's hard to know without details, but assuming that the (large, not huge) house needs more or less everything, it could be closer to the second number. Roof, windows, foundation, mechanicals (heating/ac/plumbing/electrical)- those are usually the biggies.  When you see home flippers at work, they usually replace some carpet, repaint, maybe put on a new porch deck and front steps, and do it for something closer to the first number, but none of that shores up the home for the long term.

I don't have experience renovating a bank owned home, but I have done improvements to my 100 year old house (or I should say I helped my dad do them).  That said, I think you probably need to give more info on the house you are looking at.  I think size and neighborhood have a lot to do with it.  Is it 1,000 sf or 3,000 sf?  If it is in a higher end neighborhood you probably want higher end finishes like granite counters in the kitchen.  I know you have not been inside it, but does it have water pipes?  Furnace still there?  I have been in houses that were completely striped of all pipes and even the furnace.  How does the exterior look?  Does it need to be painted?  Roof?

 

Fair questions.  We actually have multiple REO properties on our watchlist, but they are both in highly regarded neighborhoods in Northwest Akron (one in the Merriman district north of Memorial Parkway, and one or two in Fairlawn Heights).  Each of them is in the 5000sq' range.

 

We are willing to indulge in some economically impractical high-end finishes because we intend to get a house to use, not to resell, and the neighborhoods and houses we're looking at can justify some premium work.  I am actually generally skeptical of the "house as an investment meme," as I've posted elsewhere on these boards.  Quite honestly, I could be content to be a renter for life and skip the hassles and responsibilities of homeownership entirely.  However, one of the perks of owning rather than renting is the ability to strip rooms to the studs, if warranted, and build the space you actually want to live in (and raise kids in, and entertain people in, and all the rest).

 

To the best of my knowledge, the pipes and furnace are still there in each of those houses.  They were large enough to warrant security.  If they have been stripped, that is an absolute dealbreaker; we are not emotionally invested any of these houses, particularly given that we haven't even been inside any of them.

Obviously, my wife and I will get a home inspector and other professional help on this as well if we decide to move forward with it, but given the amount of architecture and building enthusiasts on this board, I'm not above hitting up the Internet for free help before hiring professionals.

 

My wife and I may be considering buying a bank-owned fixer-upper in Akron.  I say "may" because all either of us has done is look at it from the outside, and it clearly needs work; I have no idea how bad it is on the inside.  We probably have the budget and the credit, but a lot depends on whether the typical foreclosure renovation budget (for a large home) is normally in the $20,000 range or the $200,000 range.

 

Has anyone else done this and have general advice or lessons learned to share?  Any sites people know that you think give good advice to people just starting to consider embarking on such a venture?  General senses of the budgets involved in REO restoration?

 

(I'm actually surprised we don't have a thread on general renovation advice and budgeting already, or maybe we do and I somehow missed it.)

 

Make sure to take before and after pictures.  As a reno/rehab junkie, I can say the exact amount of money you'll spend wont be known until you open up the walls.

 

Once you get inside and determine structural composition of the house, you'll have to look at the wiring and plumbing.  Lord only knows what you'll discover.

 

Make sure to have a through home inspection and make sure the inspector has errors and omissions coverage.

This raises an interesting question in my mind.

 

I am assuming that the bank owns the home due to the fact it bought it in a sheriff sale (it held the mortgage and was the only bidder at the sheriff sale or the successful competitive bidder at the sale) or accepted a deed in lieu from the owner who was in default.

 

At least in the sheriff sale situation it is bought in "as is" condition without the disclosures required under Ohio law when there is an arms length sale.

 

Now that it holds title to the house, what kind of disclosure duties (and corresponding legal liabilities) does the bank have?  Do they regularly make a through inspection of the property before marketing it for sale and make the required disclosures.  Or do they avoid that like the plague so they can say, under the law, they had no knowledge of defects, which is rational since they never occupied the house and again never had a professional inspection giving them the requisite knowledge leading to disclosure.  In other words they are also basically selling the house AS IS. 

 

I really don't know the duty the bank would owe under such a scenario and like you suggested, I would have a complete inspection conducted (especially since the previous home owner was strapped for cash and most likely defferring regular maintenance).  But like others cautioned, you can really never know what is behind the walls.  I would go into it with a significant contingency budget.

This raises an interesting question in my mind.

 

I am assuming that the bank owns the home due to the fact it bought it in a sheriff sale (it held the mortgage and was the only bidder at the sheriff sale or the successful competitive bidder at the sale) or accepted a deed in lieu from the owner who was in default.

 

At least in the sheriff sale situation it is bought in "as is" condition without the disclosures required under Ohio law when there is an arms length sale.

 

Now that it holds title to the house, what kind of disclosure duties (and corresponding legal liabilities) does the bank have?  Do they regularly make a through inspection of the property before marketing it for sale and make the required disclosures.  Or do they avoid that like the plague so they can say, under the law, they had no knowledge of defects, which is rational since they never occupied the house and again never had a professional inspection giving them the requisite knowledge leading to disclosure.  In other words they are also basically selling the house AS IS. 

 

I really don't know the duty the bank would owe under such a scenario and like you suggested, I would have a complete inspection conducted (especially since the previous home owner was strapped for cash and most likely defferring regular maintenance).  But like others cautioned, you can really never know what is behind the walls.  I would go into it with a significant contingency budget.

 

I would assume "as is", that is how I bought my apartment.  Banks do not negotiate.

MTS: You are correct that all of the bank-owned and GSE-owned houses that we're looking at are sold as-is, and I assume that you're correct that there isn't really room to negotiate with the lender on that point; they can come down on price, but they're not going to consent to lingering obligations.  They want to be rid of the places, which is why the prices are reasonable enough to potentially overcome my initial aversion to buying as opposed to renting.

 

Is "errors and omissions coverage" something that gives you a claim against the inspector (or an insurance company) for material errors and omissions in the inspection report?  Do you typically pay extra for it?  Do you know what the time limit on discovering errors and omissions usually is?

MTS: You are correct that all of the bank-owned and GSE-owned houses that we're looking at are sold as-is, and I assume that you're correct that there isn't really room to negotiate with the lender on that point; they can come down on price, but they're not going to consent to lingering obligations.  They want to be rid of the places, which is why the prices are reasonable enough to potentially overcome my initial aversion to buying as opposed to renting.

 

Is "errors and omissions coverage" something that gives you a claim against the inspector (or an insurance company) for material errors and omissions in the inspection report?  Do you typically pay extra for it?  Do you know what the time limit on discovering errors and omissions usually is?

 

E&O is like inspectors malpractice insurance.  It will help you in the end if there are things that are obvious the inspector didn't not note in his report.  For instance things that Mike Holmes finds on his shows.  Time limits I do not know.

MTS: You are correct that all of the bank-owned and GSE-owned houses that we're looking at are sold as-is, and I assume that you're correct that there isn't really room to negotiate with the lender on that point; they can come down on price, but they're not going to consent to lingering obligations.  They want to be rid of the places, which is why the prices are reasonable enough to potentially overcome my initial aversion to buying as opposed to renting.

 

Is "errors and omissions coverage" something that gives you a claim against the inspector (or an insurance company) for material errors and omissions in the inspection report?  Do you typically pay extra for it?  Do you know what the time limit on discovering errors and omissions usually is?

 

E&O is like inspectors malpractice insurance.  It will help you in the end if there are things that are obvious the inspector didn't not note in his report.  For instance things that Mike Holmes finds on his shows.  Time limits I do not know.

 

Gramarye....the following is off the cuff without having done any research so don't consider it firm legal advice.

 

Any reputable inspector is going to carry E and O insurance and I would not use one who does not carry it and they should not be shy about confirming the fact that they have it when asked.  There should not be any cost to you in this regard other than maybe an inspector who carries the insurance has a slightly higher rate (but again I would not use one would did not have the coverage...it really is standard and as MTS indicated it is like malpractice insurance).

 

I am GUESSING the statute of limitations to make a claim would be two years, as it basically would be a negligence cause of action, but again, don't quote me.  The statute of limitations may also be extended under the "discovery rule" concept.  In other words the statute of limitations would be tolled if you had not "reasonably" discovered his negligence in conducting the inspection.  The more obvious the error the inspector made, the less likely the statute would be tolled (for example...and this is an extreme example for illustration...the roof is caving in and he falls to tell you in his report...you should have pretty much realized right from the start that he blew it and the two year statute would not be tolled...in contrast...he failed to tell you in the summer that the furnace did not work...but you did not realize his error until you went to turn it on in the winter....this would probably toll the claim and the two years would begin to run when you "discovered" (reasonably) that the furnace did not work in the winter).

 

I would assume most contracts between home owners and inspectors have clauses that limit the inspectors liability to a certain extent, and they will make this known to you (or should) up front.  In other words, if it is not in their scope of work to find hidden defects that might require deconstruction, they probably would not be liable for not discovering the problem.

 

 

That's good, but unfortunately, it looks like the things it's least likely to cover are the things I would most want coverage for, since it's the monsters lurking behind the walls that I'm most afraid of.  I'd be willing to pay more for latent-defect coverage, but an inspector might not be willing to give me that at all (or at least not on a bank-owned or GSE-owned home).

That's good, but unfortunately, it looks like the things it's least likely to cover are the things I would most want coverage for, since it's the monsters lurking behind the walls that I'm most afraid of.  I'd be willing to pay more for latent-defect coverage, but an inspector might not be willing to give me that at all (or at least not on a bank-owned or GSE-owned home).

 

You never know.  An inspector can only open up and see so much and advise you.  This kind of reno, either you're in and expect "issues" or your out.

Im on my 8th foreclosure purchase.  I dont even waste money on an inspection anymore and do my own.  Ive learned what to look for, but there are NEVER any guarantees.  Banks sell "as-is".  How convenient for them.

 

My advice would be to make sure you are getting the place at a low enough price that you can allow for these surprises.  I just finished up a 4000sq foot home built in 1964.  It had been redone in the 1980's.  Structurally sound, didnt need a new roof, just a small flat rubber roof area replacement, and just a paint job and basic gutter work outside.  Inside i added one shower stall in basement, ripped out and re-tiled master bath, saved the other full bath and half bath.  Although they get full cabinetry, granite tops and new fixtures and toilets.  I took down one wall, added on wall, and did a gourmet kitchen with new builder grade cabinets, about 30 ft of granite counters, stainless farmhouse sink, and stainless appliances including double frideg/freezer and commercial range.  Finished off the basement, adding a "bedroom" space and huge family room and all new carpet.  The house had existing wood floors repaired for damage and refinished, and I added about 1000 sq/ft of new hardwoods where there used to be carpeting.  Existing furnace was great, had to replace the 4-ton A/C unit.  Every surface is either repainted or replaced or refloored.  Every light fixture is new as well.  Of course there is sooooo much more.

With the value of my work added to the electrical and plumbing I contracted out, plus materials, I spent about $95,000.  Almost three times the amount of any renovation Ive done before.  Even for a 1300 sq/ft home.  But it sounds similar to your scenario.  The house sits on a great street of good homes, and I felt the risk was worth it.  It sold in 16 days.

I like your point of view regarding homes as investments.  I think that time is over.  Sure, there are exceptions, but for the most part, most of us will be lucky to see appreciation.  But that doesn't mean a home is still not a good piggy-bank, as most of us will still get back what we paid for it.

 

Im on my 8th foreclosure purchase.  I dont even waste money on an inspection anymore and do my own.  Ive learned what to look for, but there are NEVER any guarantees.  Banks sell "as-is".  How convenient for them.

 

My advice would be to make sure you are getting the place at a low enough price that you can allow for these surprises.  I just finished up a 4000sq foot home built in 1964.  It had been redone in the 1980's.  Structurally sound, didnt need a new roof, just a small flat rubber roof area replacement, and just a paint job and basic gutter work outside.  Inside i added one shower stall in basement, ripped out and re-tiled master bath, saved the other full bath and half bath.  Although they get full cabinetry, granite tops and new fixtures and toilets.  I took down one wall, added on wall, and did a gourmet kitchen with new builder grade cabinets, about 30 ft of granite counters, stainless farmhouse sink, and stainless appliances including double frideg/freezer and commercial range.  Finished off the basement, adding a "bedroom" space and huge family room and all new carpet.  The house had existing wood floors repaired for damage and refinished, and I added about 1000 sq/ft of new hardwoods where there used to be carpeting.  Existing furnace was great, had to replace the 4-ton A/C unit.  Every surface is either repainted or replaced or refloored.  Every light fixture is new as well.  Of course there is sooooo much more.

With the value of my work added to the electrical and plumbing I contracted out, plus materials, I spent about $95,000.  Almost three times the amount of any renovation Ive done before.  Even for a 1300 sq/ft home.  But it sounds similar to your scenario.  The house sits on a great street of good homes, and I felt the risk was worth it.  It sold in 16 days.

I like your point of view regarding homes as investments.  I think that time is over.  Sure, there are exceptions, but for the most part, most of us will be lucky to see appreciation.  But that doesn't mean a home is still not a good piggy-bank, as most of us will still get back what we paid for it.

 

 

How come we never see pictures???

^^See, that's the thing, is that I don't like all this modernization and renovation before prospective buyers even get a chance to look at the place. I understand that you have made much more money than I have in real estate, but I hate it when people paint over wood accents with a bunch of boring paint for example. I associate granite countertops with reality shows. You're assuming that people will like the changes you made -- which might actually end up backfiring when they offer you less since they will want to rip out the very things you spent thousands putting in. Nobody likes bad gutters, broken A/Cs and under-performing insulation, of course, but I hate the idea of having to go down to the vintage building supply reseller to make the place look how it did before somebody fogged the entire place in and out with white paint three months prior.

 

I'm the kinda guy who wants an old person's house that hasn't been touched so that I can decide what to do rather than be stuck with something made to look like an apartment.

Im on my 8th foreclosure purchase.  I dont even waste money on an inspection anymore and do my own.  Ive learned what to look for, but there are NEVER any guarantees.  Banks sell "as-is".  How convenient for them.

 

My advice would be to make sure you are getting the place at a low enough price that you can allow for these surprises.  I just finished up a 4000sq foot home built in 1964.  It had been redone in the 1980's.  Structurally sound, didnt need a new roof, just a small flat rubber roof area replacement, and just a paint job and basic gutter work outside.  Inside i added one shower stall in basement, ripped out and re-tiled master bath, saved the other full bath and half bath.  Although they get full cabinetry, granite tops and new fixtures and toilets.  I took down one wall, added on wall, and did a gourmet kitchen with new builder grade cabinets, about 30 ft of granite counters, stainless farmhouse sink, and stainless appliances including double frideg/freezer and commercial range.  Finished off the basement, adding a "bedroom" space and huge family room and all new carpet.  The house had existing wood floors repaired for damage and refinished, and I added about 1000 sq/ft of new hardwoods where there used to be carpeting.  Existing furnace was great, had to replace the 4-ton A/C unit.  Every surface is either repainted or replaced or refloored.  Every light fixture is new as well.  Of course there is sooooo much more.

With the value of my work added to the electrical and plumbing I contracted out, plus materials, I spent about $95,000.  Almost three times the amount of any renovation Ive done before.  Even for a 1300 sq/ft home.  But it sounds similar to your scenario.  The house sits on a great street of good homes, and I felt the risk was worth it.  It sold in 16 days.

I like your point of view regarding homes as investments.  I think that time is over.  Sure, there are exceptions, but for the most part, most of us will be lucky to see appreciation.  But that doesn't mean a home is still not a good piggy-bank, as most of us will still get back what we paid for it.

 

 

How come we never see pictures???

 

Sorry MTS.  i also don't really even take pics anymore,  beyond cellphone images I use as reminders and estimators when materials shopping etc.  But you can look at the listing online if you want.

 

http://www.comey.com/re/homesearch/displaylisting/listnum/1330200/mls/mls_cincy/MLS-1330200/2985-Timbercrest-Dr-Cincinnati-Westwood-OH-45238

Im on my 8th foreclosure purchase.  I dont even waste money on an inspection anymore and do my own.  Ive learned what to look for, but there are NEVER any guarantees.  Banks sell "as-is".  How convenient for them.

 

My advice would be to make sure you are getting the place at a low enough price that you can allow for these surprises.  I just finished up a 4000sq foot home built in 1964.  It had been redone in the 1980's.  Structurally sound, didnt need a new roof, just a small flat rubber roof area replacement, and just a paint job and basic gutter work outside.  Inside i added one shower stall in basement, ripped out and re-tiled master bath, saved the other full bath and half bath.  Although they get full cabinetry, granite tops and new fixtures and toilets.  I took down one wall, added on wall, and did a gourmet kitchen with new builder grade cabinets, about 30 ft of granite counters, stainless farmhouse sink, and stainless appliances including double frideg/freezer and commercial range.  Finished off the basement, adding a "bedroom" space and huge family room and all new carpet.  The house had existing wood floors repaired for damage and refinished, and I added about 1000 sq/ft of new hardwoods where there used to be carpeting.  Existing furnace was great, had to replace the 4-ton A/C unit.  Every surface is either repainted or replaced or refloored.  Every light fixture is new as well.  Of course there is sooooo much more.

With the value of my work added to the electrical and plumbing I contracted out, plus materials, I spent about $95,000.  Almost three times the amount of any renovation Ive done before.  Even for a 1300 sq/ft home.  But it sounds similar to your scenario.  The house sits on a great street of good homes, and I felt the risk was worth it.  It sold in 16 days.

I like your point of view regarding homes as investments.  I think that time is over.  Sure, there are exceptions, but for the most part, most of us will be lucky to see appreciation.  But that doesn't mean a home is still not a good piggy-bank, as most of us will still get back what we paid for it.

 

 

How come we never see pictures???

 

Sorry MTS.  i also don't really even take pics anymore,  beyond cellphone images I use as reminders and estimators when materials shopping etc.  But you can look at the listing online if you want.

 

http://www.comey.com/re/homesearch/displaylisting/listnum/1330200/mls/mls_cincy/MLS-1330200/2985-Timbercrest-Dr-Cincinnati-Westwood-OH-45238

 

I like the stove!  Question, don't you need a banister on the entry stairs?  Is it up to current building code to leave it like that?  This is something a housing inspector would tell a potential buyer.

I left it off on purpose.  It was ugly as hell, and any hope of a replacement fell to the budget axe. 

 

An inspector will probably point it out in the report.  I'll let the buyers decide if they want the old one reattached.  Now, if an FHA mortgage inspector says it HAS TO go back, then they have no choice.  If the buyers want to pony-up for an updated replacement, I would install it for them.

I have never bought a fixer-upper, but I plan to do so some day.  I would focus on the 'bones' of the structure.  Costmetic stuff (paint, holes in the wall, flooring, windows, ugly carpeting, etc) can be fixed over time.  I would look at whether the floors are level..... whether there are any points that the foundation is sinking or has sunk, making parts of the house not level with the ground.  Is there any signs of flooding/water damage in the basement?  Any cracks in the foundation?  What is the state of the electical and plumbing (i.e. does it need updating/replacement)?  Are the walls plaster (and harder to work with/repair IMO)?  Does it need a new roof and are there any neigborhood requirements (in terms of materials) which a new roof would need to meet?  Does the wood underneath the roof need replacing?  What about outside violations, such as broken pavement?  A new roof and a new driveway could easily run you $20,000.  Also, you shouldn't overlook what might be problematic in terms of landscaping, such as a huge oak tree which needs to come down.

Your comment about legally required roofing materials reminded me of a more general question I had in that vein: How hard to obtain are the various building permits that it seems are required to do everything these days?

 

http://akronohio.gov/plansandpermits/permitsrequired.htm

 

Given that it seems like you can't hammer a nail without getting the government's permission around here, I'm hoping that isn't too time-consuming, particularly given that it looks like you need a permit for each individual task as part of the renovation project.

For most renovations that need a permit, you probably will hire a contractor to do the job anyway, right?  The contractor would pull the permit.  I don't know about Akron, but where I live, you need a permit to put on a roof, siding, build a deck, replace a driveway, but not to do interior repairs or renovations like finishing a basement, replacing flooring, or installing a new kitchen.

I don't know about Akron, but where I live, you need a permit to put on a roof, siding, build a deck, replace a driveway, but not to do interior repairs or renovations like finishing a basement, replacing flooring, or installing a new kitchen.

 

If you're doing plumbing or electrical work, you might need a permit.  Each city building department clarifies what does & doesn't require a permit

For most renovations that need a permit, you probably will hire a contractor to do the job anyway, right?  The contractor would pull the permit.  I don't know about Akron, but where I live, you need a permit to put on a roof, siding, build a deck, replace a driveway, but not to do interior repairs or renovations like finishing a basement, replacing flooring, or installing a new kitchen.

 

But if you change, take down, reconfigure rooms you may need to file with your local buildings department.  Don't trust the contractor, learn the laws for your community!

^I think that would apply if you are planning on eliminating or changing a structural support?  I don't think it would apply, for instance, if you are simply adding a wall to separate your rec room from the rest of your basement.... or if you are finishing an attic.

^I think that would apply if you are planning on eliminating or changing a structural support?  I don't think it would apply, for instance, if you are simply adding a wall to separate your rec room from the rest of your basement.... or if you are finishing an attic.

 

I can't remember, but for fire code some communities require this.

You also may need to look at if you are in a historic district, as that can add additional limitations and costs for exterior work.  It can get real expensive if you have, and have to replace as such, a slate or tile roof, for example.  Windows and siding are the other big sticking points in historic districts.

You also may need to look at if you are in a historic district, as that can add additional limitations and costs for exterior work.  It can get real expensive if you have, and have to replace as such, a slate or tile roof, for example.  Windows and siding are the other big sticking points in historic districts.

 

yep shaker heights & cleveland heights are two cities with strict codes.  When doing my apartment I had to jump through hopes, but I did a ton of changes.  My brownstone is in a historic district and its was pain to renovate.  The new apartment in thinking of buying is also in a historic district on top of being a coop and just preliminary budgeting has added costs and it's not looking good.

You also may need to look at if you are in a historic district, as that can add additional limitations and costs for exterior work.  It can get real expensive if you have, and have to replace as such, a slate or tile roof, for example.  Windows and siding are the other big sticking points in historic districts.

 

That's what I was mentioning above with the roof.  I suppose such restrictions would only apply in historic districts and maybe some cookie-cutter McMansion neighborhoods (which I doubt Gramarye is buying into).  I once lived in a historic district down south and there were even restrictions on changing the landscaping.  We needed city approval just to remove a bush.

You also may need to look at if you are in a historic district, as that can add additional limitations and costs for exterior work.  It can get real expensive if you have, and have to replace as such, a slate or tile roof, for example.  Windows and siding are the other big sticking points in historic districts.

 

That's what I was mentioning above with the roof.  I suppose such restrictions would only apply in historic districts and maybe some cookie-cutter McMansion neighborhoods (which I doubt Gramarye is buying into).  I once lived in a historic district down south and there were even restrictions on changing the landscaping.  We needed city approval just to remove a bush.

 

The neighborhoods we're looking at are definitely not cookie-cutter McMansion neighborhoods in the burbs.  I also don't believe that they are in historic districts, at least not of the level that there might be a historic preservation commission adding a further (and likely even more intrusive) level of bureaucracy beyond just the municipal permits.  We would very likely want to add newer windows and doors, so the presence of a historical commission could easily be a dealbreaker.  One of them also has a detached garage in need of some facade work (at the very least ... this is just me eyeballing it).

Before replacing the door, you might want to consider what you can do with the one already there (refinish, paint, replace glass, etc.)  That's assuming it is a solid wood door.  You are going to find that a quality, new wood door will cut into your retirement savings.  I put a steel door on the front of my house and couldn't be more disappointed.  Steel my arse..... my son's hot wheel falling down the front steps put a dent in it.  This generally applies to many home renovations..... sometimes it is better to work with what you have then it is to buy something new.  Food for thought....

Admittedly, the door might be in better shape than it looks, and indeed, I would hope that an inspector would give me the good news that some of what looks like might be more serious damage (not just with respect to the door, but with window frames, fascia, soffits, and other exposed wood) is in fact mostly cosmetic.

 

However, the discounts on some of these places are large enough that I just have to assume that there are some things seriously wrong with them.  The door might not be one of them, but more generally, we're prepared for a big-budget renovation if we decide to go this route.  We would hopefully qualify for a significant 203(k) loan, and we'd be willing to go through the extra paperwork necessary to get one.  My nightmare scenario would be qualifying for just such a large loan and then discovering structural problems that would basically make the place unsalvageable even with a big budget--something that would make me regret being overly ambitious.  After all, my wife and I could be quite happy in a much smaller place.  We don't need a 5000sqft fixer-upper.  The attraction of the project wouldn't just be the ability to throw larger parties, but to be bringing one of the gems of Akron's glory days back from the dead.  The concern is that we might try to bring it back from the dead and end up with just a zombie.

Admittedly, the door might be in better shape than it looks, and indeed, I would hope that an inspector would give me the good news that some of what looks like might be more serious damage (not just with respect to the door, but with window frames, fascia, soffits, and other exposed wood) is in fact mostly cosmetic.

 

However, the discounts on some of these places are large enough that I just have to assume that there are some things seriously wrong with them.  The door might not be one of them, but more generally, we're prepared for a big-budget renovation if we decide to go this route.  We would hopefully qualify for a significant 203(k) loan, and we'd be willing to go through the extra paperwork necessary to get one.  My nightmare scenario would be qualifying for just such a large loan and then discovering structural problems that would basically make the place unsalvageable even with a big budget--something that would make me regret being overly ambitious.  After all, my wife and I could be quite happy in a much smaller place.  We don't need a 5000sqft fixer-upper.  The attraction of the project wouldn't just be the ability to throw larger parties, but to be bringing one of the gems of Akron's glory days back from the dead.  The concern is that we might try to bring it back from the dead and end up with just a zombie.

 

Remember a inspector is a generalist.  They can't give you all the solutions to every problem. If they turn up an issue with a big ticket item like roof, furnace, foundation, mold, asbestos, termites, pests, etc., then have an expert who specializes in that part of the home come in for a more in depth inspection.

Be careful with those 'mold experts'...... they are in the business of selling VERY expensive remediation plans and EVERY home they inspect is in 'dire need' of remediation.  Treat him like you would the window guy

"Doing nothing could result in your family suffering from respiratory problems for the rest of their lives."

Another question on this topic: Is Angie's List worth the membership fee?

I'm buying a new house and it needs a new kitchen.  I'm buying it from Fannie Mae and using a special loan that let's me wrap up to $35k of improvements into the loan.  I have to paint the house, but besides that I want to put a new kitchen in.  It's not the biggest kitchen, so my dad thinks I should expand the house by like 4-6 feet to have more room.  Anyone here ever expand a house?  How costly could this be?

I'm buying a new house and it needs a new kitchen.  I'm buying it from Fannie Mae and using a special loan that let's me wrap up to $35k of improvements into the loan.  I have to paint the house, but besides that I want to put a new kitchen in.  It's not the biggest kitchen, so my dad thinks I should expand the house by like 4-6 feet to have more room.  Anyone here ever expand a house?  How costly could this be?

More information is needed.  Depends on what your city will allow you to do.  The existing foundation.  Where the footers are.  What kind of materials your going to use.  There are a lot of variables.  I'll say $35k off the top of my head.

I'm buying a new house and it needs a new kitchen.  I'm buying it from Fannie Mae and using a special loan that let's me wrap up to $35k of improvements into the loan.  I have to paint the house, but besides that I want to put a new kitchen in.  It's not the biggest kitchen, so my dad thinks I should expand the house by like 4-6 feet to have more room.  Anyone here ever expand a house?  How costly could this be?

More information is needed.  Depends on what your city will allow you to do.  The existing foundation.  Where the footers are.  What kind of materials your going to use.  There are a lot of variables.  I'll say $35k off the top of my head.

 

Cleveland Heights.  It's about a foot or two off the ground, so I assume I'd put down a concrete slab and the expansion would be above a small crawl space. Not sure about materials.  Cinder blocks for the sides?  Exterior would be finished to match with wood plank siding.

In most cases such a large change that resulted in such a small gain of square footage is not worth it.  Think of other less expensive changes that could potentially achieve a similar "feel" as bumping out the home. 

- a bay window or box bay window that either does or doesn't extend to the floor

- French doors that replace a window leading to a nice deck or patio

- a larger window

- taking out a wall to an adjoining room

 

Most of these can also usually be done "under the radar" so to speak.  An addition, not so much.

However, due to the nature of a 203k loan, you may not fly under the radar anyway.  Contractors have a history of overcharging on 203k jobs, as the process can be tedious at times.

 

 

 

 

I'm buying a new house and it needs a new kitchen.  I'm buying it from Fannie Mae and using a special loan that let's me wrap up to $35k of improvements into the loan.  I have to paint the house, but besides that I want to put a new kitchen in.  It's not the biggest kitchen, so my dad thinks I should expand the house by like 4-6 feet to have more room.  Anyone here ever expand a house?  How costly could this be?

More information is needed.  Depends on what your city will allow you to do.  The existing foundation.  Where the footers are.  What kind of materials your going to use.  There are a lot of variables.  I'll say $35k off the top of my head.

 

Cleveland Heights.  It's about a foot or two off the ground, so I assume I'd put down a concrete slab and the expansion would be above a small crawl space. Not sure about materials.  Cinder blocks for the sides?  Exterior would be finished to match with wood plank siding.

 

CH is going to be all over you like white on rice.  Make sure you have all your permits.

You might have to go through some sort of design review with an addition as well.

I will certainly hire a licensed and insured contractor and know that I will need to go before Architectural Board of Review.  I don't anticipate any issues with that process.

In the case of such a small addition you can usually sister joist the new portion onto the existing joists and because it's only a couple feet this can more than easily be handled by a cantilever (assuming everything else is in order which obviously could not be the case) meaning no foundation work would need to be done. But I'd be concerned that by bumping out an exterior wall you'd need quite a bit of structure to carry the load from the roof/second floor which is, at the moment, going down through the existing wall to the foundation. So there could be some heavy structural reconfiguring necessary which can get costly. But this all depends on the exact situation so without details it's hard to make more than a general guess.

Good to know thanks.  I guess I just need to get some contractors out.  I need one of those HGTV shows to do it for me for free!  ha!

Could you open up any interior walls to make the kitchen feel bigger? That would be much cheaper. I have a small house (also bought a Fannie Mae home last year), but my first floor has no interior partitions and feels much larger than it is. I put in a small kitchen on the one end for less than $4000 (got cabinets from Ikea and did all the work myself, appliances on sale at various stores).

Could you open up any interior walls to make the kitchen feel bigger? That would be much cheaper. I have a small house (also bought a Fannie Mae home last year), but my first floor has no interior partitions and feels much larger than it is. I put in a small kitchen on the one end for less than $4000 (got cabinets from Ikea and did all the work myself, appliances on sale at various stores).

 

That was my initial plan - I wanted to open wall to dining room and put an island in, but it turns out there is a brick chimney going through that will end up being in the way - I still plan to expose the chimney though as that will be a nice feature.

We need pictures!  ;)

We need pictures!  ;)

 

You weren't referring to me but I'm going to post some pictures anyway since I think this might be a catch-all thread for home renovations?

 

I, too, bought a Fannie Mae home. The first thing I did was put in a kitchen because whatever had been there previously was almost entirely ripped out. I lucked out and the stove and microwave worked perfectly after a bit of cleaning. Fannie Mae was also nice enough to have left me a brand new stainless steel dishwasher, still unopened in the box. Appliance-wise, all I needed was a fridge, so I was able to do the kitchen for under $4000:

 

 

I had to re-do a lot of the plumbing because the pipes froze at some point, I also took the chance to get rid of this awful bathroom:

 

 

The view from the back deck was one of the deciding factors in buying the place:

 

 

I also had to deal with this structural issue that had somehow been holding up the only entrance to the house from the street:

 

 

 

 

The house had been re-done in the 1970's and basically every original detail was removed. I did like that the entire main living floor was one open space, though.

 

^ Nice Ram!  Did you have to redo the entire plumbing or just a portion?  I may have to do some plumbing as well - hopefully I won't need to replumb the entire house!  I won't know until the water is turned on.  Did you do a HomePath Renovation Mortage?  My inspector said my electrical was a mess so I have to upgrade the panels and some wiring.  Currently the house only has 50 amp service. 

 

Here's the only pic I have right now. The kitchen is on the right which is where I may look to do an addition.