Photobucket

Author Topic: Buying a distressed homestead  (Read 861 times)

Offline Fetch33

  • Fledgling Prepper
  • *
  • Posts: 4
  • Karma: 0
  • New TSP Forum member
Buying a distressed homestead
« on: November 13, 2012, 05:12:05 AM »
My husband and I are looking for our homestead property. I had been watching a place online and the price has been dropping in large chunks, like 20k very few weeks. So we went to see it with a realtor. House is 1960's model, so some updating there. Downside is the mechanicals are all original, but there is a wood stove and pellet stove already installed. There are 2 very nice barns, I call them him and her barns...one is a giant man-cave barn with concrete floors and an exercise room, complete with cable TV. The other barn is set up for horses, goats and chickens. There is a small fenced pasture, a place for a shooting range, about 10 acres in alfalfa, some fruit trees and a large pond, which is mysteriously bone-dry. The reason the property is distress, and going to be a short-sale, is the 100 year flood plain was just redrawn. The very nice barns are now in the flood plain and the line in fact only misses the house by a few feet. The mystery compounds when you put together the fact that in the barn's exercise room, about a foot of the drywall and insulation have been removed from the bottom. There is a large ditch/creek to the east of the property. The realtor mentioned we could have the property with the barns carved off from the rest and purchase with cash and put the mortgage on the house and rest of the property, negating the need for flood insurance on the house. I suspect has been done in the past because there are already 3 property tax records associated with this property. Now the question. This property could be had for a significant amount of money less than comparables, probably under 200k. We are in a position to purchase barn for cash. Our concern is when we would go to sell, probably decades away, we would also have the same problem with selling the place presumably. We are being cautious and thinking through all options. My husband thinks some very tall hugelkulture beds placed to the east would stop the possibility of flooding to the property, but the property is scarred with this flood plain designation. Any thoughts?

Offline bdhutier

  • Survivalist Mentor
  • *****
  • Posts: 932
  • Karma: 32
  • Defensor libertas
Re: Buying a distressed homestead
« Reply #1 on: November 13, 2012, 06:23:21 AM »
Since it sounds like you're going in with the intention of eventually selling, you may want to take a pass.  If you guys were planning on staying, things might be different. 
Tolerance is the virtue of the man with no convictions.
-- G. K. Chesterton

So go do some PT, then by all means take some ninja classes.
-- Chemsoldier

Offline RationalHusker

  • Survivalist Mentor
  • *****
  • Posts: 800
  • Karma: 32
Re: Buying a distressed homestead
« Reply #2 on: November 13, 2012, 06:39:12 AM »
It sounds as though this may flood occasionally, and once is too much.  Flood maps are not accurate in many areas and can be off by a foot or more in elevation, which on flat ground could been 50ft horizontally.    Also, dont think that 100yr floods only happen once in a hundred years.  you could have 2 in the same year.  If you buy,  get flood insurance even if not required to.

Offline Fetch33

  • Fledgling Prepper
  • *
  • Posts: 4
  • Karma: 0
  • New TSP Forum member
Re: Buying a distressed homestead
« Reply #3 on: November 13, 2012, 07:18:58 AM »
Yes, eventually selling probably decades into the future.  Supposedly property has never flooded, but the condition of the exercise room...... :-\

Offline Alan Georges

  • Dedicated Contributor
  • ******
  • Posts: 1684
  • Karma: 72
  • Wishin' every month of the year could be June.
Re: Buying a distressed homestead
« Reply #4 on: November 13, 2012, 07:22:25 AM »
If you buy,  get flood insurance even if not required to.

Yes, get flood insurance.  It is ridiculously cheap.
Build it or buy it, start it up and try it, maybe even fry it.  Otherwise you'll never know if it works.

I swear, there are times it seems like "Baofeng" is Cantonese for "hot mess."

Offline Roundabouts

  • Dedicated Contributor
  • ******
  • Posts: 1382
  • Karma: 66
Re: Buying a distressed homestead
« Reply #5 on: November 13, 2012, 07:31:59 AM »
Kinda sounds to me like the biggest thing you like about this property is the price.  It is my feeling price although extremely important should not be the only deciding factor.  It also sounds like the potential for flooding is very real.  Since it sounds like you have seen evidence that flooding has already occurred I would say that flooding is guaranteed to happen again.  With that in mind I think I would be evaluating if that is something I want to have to deal with regularly?  How would we deal with it?  What could we do to minimize impact?  Are those solutions finically feasible?  If you have to sink money into protection / prevention and updates might that off set the  low price that has you saying humm this could be a  good deal.   

Also one of the things to think about is mold from water damage.  I have heard horror stories of places that can not get insured because of mold.  There for a loan wont go through because insurance can't be had.  Which could be very important if you need insurance for yourself and / or if you decide to sell.  You may have a more difficult time selling if that is the case.  Which has the potential to be devastating if you had to sell quickly for some reason.

If you have to deal with flooding will you also  have to deal with evacuating animals / livestock?  could the flooding wipe out your years garden fruit trees fencing?  Does it wash away the top soil or help make the soil better?  All flooding is not created equal. 

Personally I would not want to live near any place that could flood.  Nor would I want to live where I might have to deal with tornados or hurricanes.  I prefer to live near volcanos and fault lines.  Some how earthquakes volcanos forest fires are less scary to me.  Much easier to deal with?   :crazy:  So evaluate your tolerance level for the most likely disaster and prepare for that. 

If you like no love the property and the house and the location and the price.  If it fits all you want to do and the zoning allow for that then go for it.  I have found it's always about trade offs.  How is the water on the property?  Any radon gas? Check it out completely then make your decision based on all the facts and numbers.  Leave emotion out of it for the time being.  If the only reason you are buying or the main reason you are buying is for future market / investment then I say no not a good investment to many risks.  If in fact what you are seeing is flood damage and if in fact it is in a flood plain. 

Just my 2 cents.  Good luck hoped it helped @ least 1 cent worth.   
There is no $50 job that I can't do without a $100 worth of new tools.

Offline RationalHusker

  • Survivalist Mentor
  • *****
  • Posts: 800
  • Karma: 32
Re: Buying a distressed homestead
« Reply #6 on: November 13, 2012, 11:52:19 AM »
...My husband thinks some very tall hugelkulture beds placed to the east would stop the possibility of flooding to the property, but the property is scarred with this flood plain designation. Any thoughts?"

I missed the hugelkulture idea in my first read.  That might reduce the risk, but not eliminate it.  Second, it would technically require a floodplain development permit to put any kind of "fill," which would include a tall hugelkulture bed, within the regulatory (i.e., 100-year) floodplain.  If the place you want to put those is in the mapped floodplain, it won't be feasible from a regulatory standpoint.  The local floodplain administrator could turn a blind eye, but I wouldn't bank on it.  And that could cause trouble in a resale, too, if the "violation" were discovered then.


Offline Adam B.

  • Dedicated Contributor
  • ******
  • Posts: 1342
  • Karma: 39
    • The Uncomfortable Truth
Re: Buying a distressed homestead
« Reply #7 on: November 13, 2012, 02:06:08 PM »
Don't be one of those people who move or build on a flood plain and then wonder why their house is all wet or gone when it floods :-)

Living in a city where the only flat pieces of land are flood plains for 18 years — where I have seen 3 major floods where those neighborhoods are more or less wiped out — only to have the same people move back in and rebuild when the water goes down is like watching someone go into the doctor's office getting chemo-therapy for lung cancer while they sit there smoking a cigarette through their tracheotomy hole.
Listen to my podcast — The Uncomfortable Truth
(shameless plug)
http://www.theuncomfortabletruth.com

Offline markl32

  • Senior Survivalist
  • ****
  • Posts: 204
  • Karma: 10
  • New TSP Forum member
Re: Buying a distressed homestead
« Reply #8 on: November 13, 2012, 02:27:02 PM »

If you decide to get it you had best get the bast damn title insurance and title researcher in the county.  Sounds like there are skeletons in its closet for sure. 


Offline LifePrepper

  • Fledgling Prepper
  • *
  • Posts: 7
  • Karma: 0
  • New TSP Forum member
Re: Buying a distressed homestead
« Reply #9 on: November 13, 2012, 02:27:53 PM »
The mystery compounds when you put together the fact that in the barn's exercise room, about a foot of the drywall and insulation have been removed from the bottom.
...
Any thoughts?

The ONLY reason to remove the bottom drywall and insulation is because the room flooded and it was necessary to bust out the wet material before the mold spread up the wall.
Do not believe them when they tell you the property has never flooded. You are looking at the undeniable proof that it has.

Pass on this property.  You'll find a better one.