In a housing pickle. Thoughts? Ideas?

[freshstart]

our long term hotels have become pretty run down, lots of crime. The homeless get vouchers to stay there sometimes. When I visited patients who lived in these, it was not a place I would recommend, even just in terms of peace of mind- being surrounded by so many others so down and out, up is no longer an option, that would weigh on my psyche. Our other long term hotels are geared to executives, I would assume quite pricey.

[ToomuchStuff]

(Full disclosure: I posted part of this question on another thread as a reply, but then decided it would be a worthwhile thread on its own.)

I feel like I am in a pickle, as many people do, regarding housing. Here is a description of this pickle. Tell me what you think:

-Most houses are too big, cost too much, require tons of maintenance, and are pricey to heat/cool. LOOK IN OLDER AREAS OF TOWN
-Tiny houses are illegal because of zoning, require tow trucks to move, and can cause social/privacy issues Again, not if they are already built in an older area of town
-Living in a van is for creepers (unfortunately...) in most parts of the nation, also illegal in most places; I am not mechanical either.
-Living in a teepee is a sure fire way to get Lyme Disease and/or hypothermia and/or arrested Not if the teepee is on your own property. Schoolteacher friend, once lived in one on her farm.
-Living in an apartment is giving your money to a landlord with nothing to show for it at the end (but do I want "something to show for it" at the end?) What is a condo, but something you own the inside, and pay for maintenance on, not an option for everybody though.
-Living in an RV is expensive and has many complications that tiny houses and vans have
-Living in a house with room mates is often rather horrible because "hell is other people" and this is still like renting an apartment, though often cheaper
-Living in a teardrop trailer also shares many tiny house, RV, vandwelling issues; and you need a car (at least) to tow it.

So what is a workin' man to do for affordable housing that does not constitute a second full-time job to maintain?

What about vacant land and building what you want, or finding property with an old garage, and converting it to a small house? What about a used trailer, and having it delivered? *most people don't move mobile homes), or building a prebuilt home on site?
What about something like I have looked at?
http://www.monolithic.org/cabins

Don't box your thinking in.

[freshstart]

the house that only cost $226 in taxes, I would look at the schools if children are in your future

[Gregg]

I thought you was jerking my chain until I followed the link. Wow! Can't believe it is so cheap.

In the past few years I've bought four houses like that, in small towns close to me, that were being auctioned. In each case the opening bid was $1,000 and I was the only bidder. Two needed some work, mostly cleaning, and two were move in ready. I sold one and rent the others for $225, $250 and $350 per month (all to people who work for us so they get a deal). Here's one my realtor buddy thinks will go for between $5K and $8K at the auction in August.

http://www.schultis.com/listings.do?...eN&ord=1&ps=12


Added: This is across the state line in Nebraska, not Kansas, so the taxes are four times as high. All the houses I bought were in KS.

[JaneV2.0]

Coming from an area where ordinary houses go for half a million or more, I'm impressed!

[ToomuchStuff]

Those are what is common in the area I live. The prices, have gone from around $16K to around $100K and everywhere in between. (property tax assessors hate it, one street can be high, another cheap)
One on my street went for back taxes, early this year and the one next to me (share a bit of property) is going up for sale, next year. The first one went for around $6k. I'd like to buy the one next to me and tear it down, but I fear the teardown costs as they have a wide range ($5k-15K).

My school district finally changed a few years back and it has dramatically improved. However houses sell slower because people don't want two bedroom, one bath houses.
The last houses in my neighborhood that sold, went for $16k, 23ishK, around $6k and $62K. Two estate houses, the tax sale, and one that had the former tenants from next door (made that one condemned, fixed up and occupancy permit, then sold).

[awakenedsoul]

Makes me want to buy a couple of small rental homes in KS or NE! Incredible prices. (especially compared to Southern California.) That's always been my backup plan. If things went really wrong, I figured I could sell my cottage and buy another small, older house in another part of the US where homes are a bargain.

UltralightAngler, It sounds like you've got a really great deal where you are to me. Owning a home is a big responsibility. It's not for everybody. I've been VERY happy with mine, but I really wanted it. I searched this area when prices were low. I started out as a renter, and I looked at every house that went on the market in this neighborhood. I kept a log. I built relationships with plumbers, handymen, and painters. I ended up buying the cottage I was renting without a real estate agent. I fixed it up so nicely, people wanted to help me. (When I moved in it was an eyesore.)

You don't sound to me like you'd be very happy owning a home. My hit on you is that you like having less responsibility and more freedom. Rents here are much higher than what your sister is charging you. Have you ever lived with anyone besides family? (It sounds like you've had roommates.) Are you used to paying the going rate for rent? (I don't mean this as an attack, I am just curious.) I rented for years, and it was a big chunk of my take home pay.

Also, that student loan is huge. (I don't mean that as a judgement.) I think that has a lot to do with how you feel. I would work on getting debt free before thinking about a home purchase. I would also try to increase your income. You obviously spent a lot on education...what kind of degree? Does your current income match what you expected to make after graduating?

My hit on some of the people who end up unhappy with tiny houses is that they're not very good with money. They go ahead and spend a huge amount on something that turns out to be illegal and a money pit. They don't sound like smart shoppers. They also don't strike me as being very realistic. I love the look of tiny homes, but when I compare them to my small home on a 7,400 square foot lot, they seem way too expensive. Also, I have found that the land value really matters, especially in an economic downturn.

[ApatheticNoMore]

I guess I see homeownership as potentially locking one into:

1) a bad commute forever and ever which one can't escape no matter what (say by changing apartments). And no buying where one works is no solution at all, no one has any job security and being at a job for 10 years is considered exceptional so one may start out with a house near work but that probably wont' be the case eventually
2) very high mortgage payments due in periods of unemployment. I guess you can make this work with two incomes, it seems a heavy burden for one person with modern levels of job insecurity. Unemployment doesn't even pay the rent, it's not going to pay the mortgage. I've lived from early on in my career, expecting, even to some degree planning for, periods of unemployment, it's just the way it is.
3) it's of course also massively expensive compared to renting.

[Ultralight]

the house that only cost $226 in taxes, I would look at the schools if children are in your future

What do you mean look at schools?

[Ultralight]

You don't sound to me like you'd be very happy owning a home. My hit on you is that you like having less responsibility and more freedom. Rents here are much higher than what your sister is charging you. Have you ever lived with anyone besides family? (It sounds like you've had roommates.) Are you used to paying the going rate for rent? (I don't mean this as an attack, I am just curious.) I rented for years, and it was a big chunk of my take home pay.

Also, that student loan is huge. (I don't mean that as a judgement.) I think that has a lot to do with how you feel. I would work on getting debt free before thinking about a home purchase. I would also try to increase your income. You obviously spent a lot on education...what kind of degree? Does your current income match what you expected to make after graduating?

My hit on some of the people who end up unhappy with tiny houses is that they're not very good with money. They go ahead and spend a huge amount on something that turns out to be illegal and a money pit. They don't sound like smart shoppers. They also don't strike me as being very realistic. I love the look of tiny homes, but when I compare them to my small home on a $7,400 square foot lot, they seem way too expensive. Also, I have found that the land value really matters, especially in an economic downturn.

I know I have a good deal where I currently live. If I moved out on my own I'd pay about $800 in rent, but could bike or walk to work.
I have lived with tons of roommates in my life. I have lived in 27 different houses, dorms, apartments, etc.

My student loan debt is huge. I have what amounts to three degrees in the liberal arts (Interdisciplinary, American Culture, and Library Science); One bachelors, two masters. I knew nothing about money or financial literacy until about two years ago. Since then I have learn a lot -- I paid off my car in 18 months (was a 5 year loan), paid off my ex-wife, paid some doctor/dentist/orthodontist bills, etc. I have ZERO credit card debt. If I work 10 years for the government (any level) and/or a 501c3 and make 120 loan payments during that time, then I will have the remainder of my loans forgiven. But that is the only way I get get truly debt free. If I work in the private sector then I have to wait 25 years to get my loan remainder forgiven, while making payments then whole time.