going homeless - 1/02/17

[Holeshot]

It was 11 years ago I started coming here to BARF.

Within two years, my life began to spiral. I divorced my first wife and went through the next 6 years of child custody litigation. In 2009, I lost my job with the courts due to the Great Recession. I lost my home too. My debt went into litigation and I spent three years fighting BofA and Wells Fargo. I remarried a woman who was controlling and abusive while spending three years unemployed/under employed and dependent. In hindsight I should have chosen homelessness then, but my children were still school age. When I got back on my feet career-wise, I divorced her and went back out on my own. After two years of working again (Caltrans), I tried to buy a house to secure my monthly expenses in preparation for retirement (yes I still have my pension intact, though I will likely contribute until I am 65). That fell through 7 days before closing date, thanks to the VA. I relied on the appraiser and lenders words to give notice where I was renting, and got shorted. I went homeless for two weeks and now have a rat hole for an apartment.

Then my brother calls me and tells me dad is not expected to live beyond next week.
Dad passed in the night on Tuesday. He will be interned this weekend, no ceremony just me and my brother.

This morning my uncle (executor of dad’s will) called and told me dad left the house in Hayward to me. The house is was a drug infested crack house. My dad had a drug problem for over a decade and allowed anyone with a habit to live there. When dad fell ill, my brother and I kicked everyone out and removed 45 yards of trash, including an abandoned vehicle in the garage that may have been stolen but was being used as a bed for one of the tenants. We nearly gutted the place. That’s how it sits now. That is what I inherited, a shite hole. It has good bones but about $100-150k worth of work.

At 50 years old, I am beginning again. Time to roll up my sleeves and get back to work.

I've got windows in odd sizes you can have if they will fit Mike. Older stuff, but brand new and top name brand at the time. We may have some other building supplies, but I'm not sure. I can get you measurements if you want them. They're not super common sizes, but if the place is gutted, maybe they'll work.

 

[Silence]

Condolences sir but it seems like you're now tracking up and to the right which is great. I'm located right across the bridge from you so let me know if you ever want to grab drinks/food/let off steam.

 

[JakesKTM]

I've got windows in odd sizes you can have if they will fit Mike. Older stuff, but brand new and top name brand at the time. We may have some other building supplies, but I'm not sure. I can get you measurements if you want them. They're not super common sizes, but if the place is gutted, maybe they'll work.

Definitely! Pics would be great. I'll send my phone# in PM.

 

[bojangle]

My new tag line.

I will need some professional help to get the house inspection/appraisal worthy.

The good news: The house has $350k in equity and a very low first mortgage.
The bad news: Equity is inaccessible as home will not pass FHA inspection.

I need plumbing and electrical skillz.

Can you get a second or some sort of look alike personal loan for $150,000? Hire a professional to renovate and in the end you will have a nice house worth much more than you owe.

Either that or just sell as is and use the $350k equity to buy a different house. Depending on location, you could own it free and clear.

 

[JakesKTM]

Can you get a second or some sort of look alike personal loan for $150,000? Hire a professional to renovate and in the end you will have a nice house worth much more than you owe.

Either that or just sell as is and use the $350k equity to buy a different house. Depending on location, you could own it free and clear.

I can get what's called a 203(k) FHA. I'm looking more into it now. I can't sell as is because the house isn't habitable and is owing 225k so - any buyer would be a low ball flipper and that won't yield any profit. In order to get at the equity, the home has to be renovated and brought to current market value.

so if I put $150k into it, and sold it for 590k and paid the 225k+150k I would profit roughly 200k.

The problem w 203(k) FHA loan is the work has to be done by a contractor.

The other option is to bring the home to habitability and inspection ready and then get a Home Equity loan for $60k and do most of the work myself, hiring subs when and where I really need them. Then my profit margin goes up and my mortgage payment stays low.

I will more than likely keep the house and not sell it. But I sure would like to use some of the equity to improve my life a little.

 

[byke]

None of that stuff matters with a cash buyer. May as well list it for what you want and see what happens.

 

[JakesKTM]

Also, my disabled brother lives there. It's as much his home as mine. I really just need to fix it and live in it cheaply

 

[SuperMike]

Sorry about your dad, Mike.

Life goes on though, and yours looks to be headed for some improvement. It's pretty clear that BARFers are willing to help you.

This place is such an awesome resource for just about everything there is because the love of motorcycles transcends normal socio-economic divisions. It's one of the best things about motorcycling in general and BARF specifically. We're all family.

 

[900ss]

I can recommend a licensed, fair (honest) electrician if needed.

 

[JakesKTM]

yes please!

 

[Doobz]

If it hasn't already been mentioned. Get a 24hr fitness membership. Now you can shower whenever you want.

 

[auntiebling]

what a friggin journey. wow.

i'm sorry to hear about your dad passing.

The problem w 203(k) FHA loan is the work has to be done by a contractor.

understandable on some level, for the stuff that keeps a house running. you mentioned plumbing and electrical. roof probably too... but for the requirements it's probably to some minimum habitability level. the plumbing has to be working but probably not necessarily in all 7 bathrooms (for example)

the time might come when i can help as well, i'm currently helping myself finish our remodel because as fortunate as i am i still can't afford the going rate for a contractor to completely finish all the work. (not complaining at all, just a comment on how expensive professional home construction trades are these days.)

 

[JakesKTM]

I will be heading down to Hayward tonight to help my brother deal with all of dad's stuff. I expect it to be emotional. At some point I will take inventory of all that needs to be done. Maybe I should start a new thread for anyone interested in home renovation.

It has been a journey to be sure. Through it all I never sold my motorcycle. lol

 

[DReg350]

... It has been a journey to be sure. Through it all I never sold my motorcycle. lol

Gotta keep the faith and hope alive, man. You have a lot of folks rooting for you, Mike.

 

[Gixxergirl1000]

My new tag line.

I will need some professional help to get the house inspection/appraisal worthy.

The good news: The house has $350k in equity and a very low first mortgage.
The bad news: Equity is inaccessible as home will not pass FHA inspection.

I need plumbing and electrical skillz.

I'm so very sorry about your Dad's passing... what a road you've been traveling... *hugs*

There are a fair amount of contractors here on BARF... I'm sure some of them would be willing to pitch in and help... and there are even more guys who work construction who would do the same... maybe start a thread with a call-out for volunteers?
FWIW, I'm a cabinet designer, and if you end up gutting the kitchen, I can help pull together a design, the box stores have reasonably priced modular cabinets.
I'm pretty broken, so I can't do any actual construction, but I can certainly paint, and with a little help, can knock out tile installs...

And if you need to get away for a weekend, you're welcome to come visit!

 

[JakesKTM]

Thank You Connie for being thoughtful. Everyone here in BARF has been kind. It is a great community.

I will start a construction thread once I get underway. I have to deal with my dependent 30 year old brother first. I am trying to get him motivated to get a job. I can't really do this and continue to support him. :/

 

[bruceflinch]

Is there anything that needs to be done to make your disabled brothers getting around, easier?

 

[JakesKTM]

Is there anything that needs to be done to make your disabled brothers getting around, easier?

He gets around fine. His problem is not physical. :/

I am considering letting the house go. I was out there all weekend under the house and it needs to be re-piped completely including sewer (iron pipes are rusted to shit, galvanized ppe is rusted and leaking all over). The electrical needs updating completely. Only one of two bathrooms work, and the one that works leaks all over into the bottom under the house.

The kitchen is nasty. It leaks and needs to be gutted. No insulation in any of the walls. Asbestos in the drywall and in the HVAC ducts. Newer furnace was installed poorly and should have been relocated. Rigid ducts are leaking.

Seriously I think $150k was a conservative estimate.

 

[Yakoo752]

He gets around fine. His problem is not physical. :/

I am considering letting the house go. I was out there all weekend under the house and it needs to be re-piped completely including sewer (iron pipes are rusted to shit, galvanized ppe is rusted and leaking all over). The electrical needs updating completely. Only one of two bathrooms work, and the one that works leaks all over into the bottom under the house.

The kitchen is nasty. It leaks and needs to be gutted. No insulation in any of the walls. Asbestos in the drywall and in the HVAC ducts. Newer furnace was installed poorly and should have been relocated. Rigid ducts are leaking.

Seriously I think $150k was a conservative estimate.

Why not take a construction loan or borrow against equity to improve it?

I can bulldoze and build a 2 story 2500 sqft home for $400k here in Cupertino.

 

[JakesKTM]

Why not take a construction loan or borrow against equity to improve it?

It has to pass inspection for home equity loan. It would never pass until lots of work was done first. Rehab loans (203k) are difficult to get and require written estimates that general contractors do not like to provide. If I borrowed what was needed to rehab the home I would be looking at a $2k + monthly payment and i cant afford that unless my brother got off his ass and contributed. That aint gonna happen.

The other issue is the neighborhood. It sucks. My immediate neighbor keeps his 5 crappy landscape trucks parked out front and it looks like a junkyard out there. It's on a very busy street, etc. etc. loud music. Other neighbor was blasting his car stereo for three hours.

I'm really torn right now. I'm 50 and really want to spend my weekends or taking my daughter to Disneyland.