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Considering purchasing a house

Considering purchasing a house




I'm in the very early stages of thinking about purchasing a house in the OBX, and was hoping to talk to other home owners. Not really looking so much to learn from the professional rental or large scale people, more so anyone who lives out of state, but purchased one house and rents it out when they're not using it a couple weeks out of the year. Anybody in this position that wouldn't mind helping me out?


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RE: Considering purchasing a house




You could try to PM Will and ask for access to the private homeowners only forum on here.


RE: Considering purchasing a house




You could try to PM Will and ask for access to the private homeowners only forum on here.

Aliphatic


He won't do that and all the people there are here too so they can see his question.


RE: Considering purchasing a house




You could try to PM Will and ask for access to the private homeowners only forum on here.

Aliphatic


He won't do that and all the people there are here too so they can see his question.


RE: Considering purchasing a house




Where? You want to buy vs build? How handy are you?

Given the pandemic, you have the extra cash in the bank?


RE: Considering purchasing a house




I wonder what the price range is for a “nice” home on obx. Last I saw was an Oceanside SAGA ticky tacky box for like $800,000

Bet the OF stuff goes for like 2 million, easy.

If you’ve got a quarter million in cash on hand for a down payment, congrats! I’m jealous.


RE: Considering purchasing a house




My family's had a non-rental second house on Hatteras Island in Avon for over 40 years. I can assure you that the Outer Banks is a great place to have a vacation home but it's a challenging place to be responsible for a structure. Other folks can respond about rental issues, but here are a few suggestions that apply to every house on the Outer Banks:

Plan for 50% more maintenance than you normally would. The Outer Banks weather really takes a toll. It's especially hard on windows and doors. Look for name brands such as Andersen and Pella because parts and service are readily available. Look carefully at the condition of the caulk and framing around windows and doors. As sunlight deteriorates the caulk, wind driven rain penetrates and rots the framing. If you pay attention, you'll notice houses with new cedar shingles around windows. That's because they had to replace not just windows but the framing around the windows.

If you're considering sound side, learn the flooding history in the specific area you're looking at. On Hatteras Island, from Rodanthe south, the sound is wide, shallow and easily pushed around by strong winds. The houses are on stilts for good reason. Our house is on a canal 100 yards from the sound in north Avon. We get several floods per year of one foot or less driven by straight line west winds. Once every three years, we get a flood of two to three feet caused by a hurricane crossing the sound. Once every ten years, we get a flood of four to six feet caused by a hurricane crossing the sound on just the wrong track. Flooding tendancies are extremely local. A sound side lot 200 yards east of ours will get only half the fooding depth we do. An ocean side lot 500 yards east of ours will get a foot of flooding only in a once every ten year event.

If you're considering ocean side, be aware of beach erosion in the local area. In Avon, at the north end of town, the beach has been wide and stable for at least 40 years. But from the center of town south, only a mile and half away, the beach and dunes have been eroding for more than a decade. That's why there are so many houses for sale on Ocean Front Drive.



RE: Considering purchasing a house




Where and what price range....

If you NEED to rent it to pay for it, I wouldn't do it.


RE: Considering purchasing a house




Thanks guys, I think I've already been discouraged enough. I was looking at something in kitty hawk, nags head, or kdh in the 500-600k range. I thought that by renting it out most weeks (aside from 2-3 a year) that I would be net positive, but that doesn't seem like it'd be the case.


RE: Considering purchasing a house




I wouldn't be discouraged. There is just a lot of research that goes into it before buying.

When you look at the raw numbers, it's attractive, when you start doing the math, it's not. But you could pay almost if not all of it with rent but your rainy day fund needs to cover two houses.

I cant imagine the foreclosures if they didnt open up the OBX this May.

Is it a dream to own a beach house?


RE: Considering purchasing a house




I would wait a bit. Between the pandemic affecting rentals & the economy being a little scary, there might be some foreclosure deals in the horizon.


RE: Considering purchasing a house




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RE: Considering purchasing a house




I agree.... waiting just a bit might be a good idea. Otherwise, I’m happy to answer any question I can. I’m a new owner, bought our place in April 2019. So the process is still fresh in my mind!

Mike


RE: Considering purchasing a house




You will find many purchase threads if you do a search. We have been coming to OBX since 1990 and bought in 2013. Still a great time to buy compared to the 2008 market peak.

You will find a nice house with your budget.

Best advice is posted above already ... buy what you can afford without renting.


RE: Considering purchasing a house




A couple of realtor friends have said that the market has really heated up. It hasn't been this active in years. I'm not talking about listings I am referring to houses under contract. The Voice did an article this week on this -

Click to follow link...



RE: Considering purchasing a house




I wonder what the price range is for a “nice” home on obx. Last I saw was an Oceanside SAGA ticky tacky box for like $800,000

Bet the OF stuff goes for like 2 million, easy.

If you’ve got a quarter million in cash on hand for a down payment, congrats! I’m jealous.

Aliphatic


Stick to medicine Wink smiley

Oceanfronts that are on rebuildable lots go from $800,000 to a couple million. I have one under contract for under $980k with pool and $65k in rental income. You can get 20% LTV loans if not better in some cases. I think you missed the 1 from in front of the Saga property price you quoted, unless it was not a house.


RE: Considering purchasing a house




I would wait a bit. Between the pandemic affecting rentals & the economy being a little scary, there might be some foreclosure deals in the horizon.

jefm


Time wise that is going to make you wait for a pretty long time. Once you stop making payments the bank can take a year or more to start foreclosure proceedings. Up to now the owner is the only one that can sell it. Even while it is foreclosure proceedings it can take a year if the owner fights it. Then let's say the bank gets it, now they could sell it but they are in no hurry and will hire a property management company to value it and get it listed for sale. That can take 2-4 months so see you in 2022 for foreclosures from today. 2007-2011 we did lots of those and short sales.


RE: Considering purchasing a house




We purchased a condo in KDH in 2017, and have not regretted it. It usually rents 9-12 weeks per year, which is not nearly enough to cover the expense, but helps out. We purchased a condo vs single family home because of the distance we are from OBX (500 miles), and the necessary upkeep of an exterior including lawn care. Happy to answer any questions you may have. Ironically, this year as we completed pre-season prep, my husband was pondering a single family home purchase. smiley


RE: Considering purchasing a house




I would wait a bit. Between the pandemic affecting rentals & the economy being a little scary, there might be some foreclosure deals in the horizon.

jefm


I would expect more than a few. A lot of people will have to make some hard decisions in a few months.

I am looking right now to Build a new home at a Delaware beach town, but the thought of picking up something for even cheaper is also an appealing prospect




RE: Considering purchasing a house






Time wise that is going to make you wait for a pretty long time. Once you stop making payments the bank can take a year or more to start foreclosure proceedings. Up to now the owner is the only one that can sell it. Even while it is foreclosure proceedings it can take a year if the owner fights it. Then let's say the bank gets it, now they could sell it but they are in no hurry and will hire a property management company to value it and get it listed for sale. That can take 2-4 months so see you in 2022 for foreclosures from today. 2007-2011 we did lots of those and short sales.

Tim-OBX


You are assuming it makes it to Foreclosure!

Last home I purchased, was about 2 or 3 weeks from foreclosure. The seller knew what their bottom line was to get out without having the bad mark on their credit.

5 Bedroom house picked up by me, and the seller walked away with less than $300, but he did not have a foreclosure to his name.




RE: Considering purchasing a house




Where and what price range....

If you NEED to rent it to pay for it, I wouldn't do it.

Frank N
Best advice ever.


RE: Considering purchasing a house




Where and what price range....

If you NEED to rent it to pay for it, I wouldn't do it.

Frank N
Best advice ever.

ultrahog99
I agree. Also keep in mind that there are tax laws involved as to how often you could use your own home should you decide to write off or claim any expenses. It can get complicated.



RE: Considering purchasing a house




You won’t be cash positive unless you have an oceanfront that you bought at a bargain price. You won’t make money selling it unless you get a foreclosure. No matter how many years you own it.


RE: Considering purchasing a house




It will never be any cheaper to carry a second home or investment property. I am in the process of refinancing ( 4.75% to 3.125%)whereby I lower my monthly nut by approximately $550 per month. I will be cash flow positive where I was breakeven but I will most likely reduce rental weeks during the shoulder season (May, September and October).


RE: Considering purchasing a house




I recommend: take your time, do your research, work with a realtor who can act as a buyer's agent and alert you to properties that fit your wants, determine your budget and stick to it closely, and buy during the fall or winter. Find out about past flooding in an area, elevation, beach nourishment, beach access, deeded access. get estimates of what current owner pays for wind insurance and flood insurance, as well as an umbrella policy, and figure that into your proposed budget.
Talk to property management companies and ask lots of questions!
We looked at homes in beach communities up and down east coast for years. Saved for a down payment also, put down 20% to avoid PMI. Had paid off the mortgage on our primary residence first. My philosophy was, we could take the money and go to Vegas, or buy a beach house! I was nervous about buying in OBX and spending so much money. first contract was on a short sale and the bank didn't approve. Second contract we were outbid. Third contract was the winner!
We worked with a realtor we really liked, and who was willing to spend a lot of time educating us about the rental market and what to ask PM companies. We were initially looking for something under $350K. she encouraged us to increase our budget a little and helped us find something that we loved. also helped us find an older ocean front that needed a lot of TLC a few years later. There are older homes in good locations that are less expensive and rent well for smaller families.


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