Saturday, February 8, 2014
Featured Listing: 47 Anchor, River Rouge
Last week we should you a Grosse Ile riverfront spec house. Today, we take you to River Rouge for this foreclosure bargain. We can use it to discuss what to look for in low-end housing purchases.
This is a starter property for someone who wants to quit renting. You can't get a mortgage for this amount, so you usually have to have cash. Still, it is a lot better financially than renting in this area. You come out ahead after maybe two years or so.
Cabinets are usually cheap and frequently missing some doors. That can be replaced. You want to see a floor with no structural issues to it and enough space for four people to sit and eat, either in the kitchen or a dining room. Remodels sometimes cut into that space and turn it into a house fit for only two, which can be a big problem on resale.
Be careful with unoccupied homes, the cost to replace stolen plumbing is more than you think. This one apparently has its bathroom fixtures intact and recently replaced. However, the hot water heater is missing in the picture above and the furnace might be gone, too. A furnace for this house might be $2500 or so. That is an important check mark on your list.
You want to look at the roof and furnace, too. Those can be major expenses. Major basement/foundation work is a disqualifier for me at this price point, because it can run more than the house itself.