by "Akio Ohtori - RIP Oppo" (akioohtori)
Published 11/15/2017 at 11:20
by "Akio Ohtori - RIP Oppo" (akioohtori)
Published 11/15/2017 at 11:20
Tags: TQ HQ
STARS: 4
Good morning Oppo! So, a while back I
might have mentioned
I’d decided not to buy land so I can focus on car and house repairs. Well thanks to the miracle of 100% financing, it looks like I am, in fact, going to attempt to buy land to put a garage/ shop on. Problem is, I have no idea what I am doing!
For better or worse the property is for sale by owner, so I am pretty much going to have to wing it. I haven’t made an offer yet, but I am comfortable paying full price for the lot if I have to. I also have a call with some lawyers on Friday, as is apparently the recommended practice.
The lot itself is a slightly sloped 5 acres, partially fenced, with excellent views to the North and South (on top of a hill). There is a small amount of wooded area in the back and also a 50 ft drop to a creek below. Unfortunately the creek isn’t included in the purchase, but the seller has left the option to buy it from him later.
The place itself is about 15 min from my house, which is about as close as I can expect to find without having to spend six figures.
The lead image, taken from here , is the basics of what I’m thinking of building in stages, starting middle of next year. Two stories, apartment on top, garage below. One open, covered space and one enclosed, climate controlled work area. Probably go ahead and make the main building, without finishing the apartment, first and build the rest later. The plan is a “five car garage” but I’d probably reconfigure that substantially. Looking for more like 10 to 16 total.
So what do you think Oppo? Am I crazy? Also, what would be a good strategy to get this property to start generating income for me?
"For Sweden" (rallybeetle)
11/15/2017 at 11:24, STARS: 5
Houses and cars depreciate. Land does not. Buy the land.
"davesaddiction @ opposite-lock.com" (davesaddiction)
11/15/2017 at 11:25, STARS: 1
This is crazy. Crazy awesome!
"vondon302" (vondon302)
11/15/2017 at 11:32, STARS: 3
Can’t get a conventional mortgage for vacant land. In Michigan I’ve only found 2 companies that do it and their both 10 percent down and 15 years. You might be able to do a construction loan, build your shop and then convert it to a mortgage.
I found this out trying to buy the vacant land next to my house. Your state may be different.
"Nibby" (nibby68)
11/15/2017 at 11:34, STARS: 0
looks like a nice lot for a meth lab
"Akio Ohtori - RIP Oppo" (akioohtori)
11/15/2017 at 11:35, STARS: 1
You are correct sir! A few local banks offer 100% financing on land loans, but at high rates and with a bunch of weirdo conditions. Overall unimproved land loans are a massive pain in the ass.
The conclusion is the best deal is to do a home equity loan. I don’t like it as much since it entangles my house in the whole mess, but the plan would be to convert it to a construction loan later on.
I am not happy about it, but I think the higher risk is better for the savings in both time and money.
"OPPOsaurus WRX" (opposaurus)
11/15/2017 at 11:39, STARS: 1
the only thing that bothers me is that you have a symmetrical design but the two side roofs are at different heights.
"davesaddiction @ opposite-lock.com" (davesaddiction)
11/15/2017 at 11:40, STARS: 2
If it’s completely raw (it looks like it is) make sure you understand all the costs that would come with running all necessary utilities (putting in a septic system if needed, etc) before purchasing the property. It’s possible that the associated costs of putting in a septic tank, running water, power, phone, internet (if available) could cost nearly as much as the land.
"vondon302" (vondon302)
11/15/2017 at 11:43, STARS: 1
Yeah my house is almost paid off so the home equity thing is a no go for me
The lot looks great if you can swing it go for it. Land is almost always a good investment.
Good luck
"Akio Ohtori - RIP Oppo" (akioohtori)
11/15/2017 at 11:47, STARS: 1
Absolutely a good point. City water is available at the street, as is electric. Both of those should be fairly simple to run, but being a longer run might get pricey. AEP are kind of bastards and won’t give you an estimate on the cost without starting a work order so... here we are.
Internet is likely a no-go based on location (rural Osage county) so we’re planning on tethering for the foreseeable future. Phone isn’t an issue as it isn’t the 1920's.
Overall I’ve budgeted $10k for electric, water, and septic and I am hoping that is overkill.
"Akio Ohtori - RIP Oppo" (akioohtori)
11/15/2017 at 11:49, STARS: 0
Haha IKR!? I would likely keep it that way as my plan is to make the enclosed second area taller to accommodate a lift or two. I figure heating and cooling a 3000 sqft shop is financial suicide, but carving off a single bay for heating and cooling could work.
"Akio Ohtori - RIP Oppo" (akioohtori)
11/15/2017 at 11:50, STARS: 0
Nah, we keep those in town.
"gmctavish needs more space" (gmctavish)
11/15/2017 at 11:58, STARS: 1
This is similar to what I want to do someday. Just definitely look into your local cost for hooking up utilities. It can be upsettingly expensive, I’m told.
"Rust and Dust - Oppositelock Forever" (rustanddust)
11/15/2017 at 12:00, STARS: 3
The design looks similar to my uncle’s garage, dubbed the “Taj Ma-Garage” by my Grandfather.
3 bays wide, two cars deep each bay, two deep “carports” on either side of the garage, and the porch for the second story provides a full length covered space outside each garage bay door. Where you’ve got windows above the 2nd level porch doors, he’s got a PA system rigged up for music when outdoors (or three towns away, pending volume levels).
"davesaddiction @ opposite-lock.com" (davesaddiction)
11/15/2017 at 12:03, STARS: 0
Looks like you’ve done your homework. Nice that you have close access to city water and electric. We’re NE of Coweta, and are on rural electric, rural water, septic and Windstream for phone & internet (DSLow...), and tether when necessary. Thankfully our AT&T speeds out there are pretty awesome.
Is it priced at $10k per acre, or a little more than that?
"davesaddiction @ opposite-lock.com" (davesaddiction)
11/15/2017 at 12:04, STARS: 1
I like your uncle.
"Akio Ohtori - RIP Oppo" (akioohtori)
11/15/2017 at 12:08, STARS: 0
More, sadly. He is asking $69k but said he’d “accept an offer over $60k” so I’m hoping to get it for around that.
Do you think that is too much? Because now is the time to talk me out of it haha.
"davesaddiction @ opposite-lock.com" (davesaddiction)
11/15/2017 at 12:18, STARS: 1
So... I did some sleuthing and figured out the location. =) Really looks like a great spot and it doesn’t seem like a bad price at all for how close it is to civilization and just 10 mins to downtown(!). We bought an existing home on 10 acres, and paid right around $10k per acre for the land itself (once you take out the value of the home, but that’s also with water, phone & electric in place - small development with large lots), but we are waaay out east (my drive in is 35 minutes if traffic is light).
Is he selling a whole row of 5 acres “slices”?
"Tapas" (tapas)
11/15/2017 at 12:33, STARS: 3
You officially have no excuse to not have a dirt track for mini bikes.
"XJDano" (xjdano)
11/15/2017 at 12:37, STARS: 1
I would make the side garage with a 14' door and put the roof line from main house to edge of building.
That way you can fit a camper or enclosed trailer or bus in.
May not be in immediate plans but something to think about.
"Akio Ohtori - RIP Oppo" (akioohtori)
11/15/2017 at 13:49, STARS: 1
Haha well done! I thought I’d cropped the screenshot well enough to keep out any meaningful data. I get the impression he is selling everything in 5 acre plots, but has already sold all but the one I’m looking at and the one next to it. (The other freshly mowed section of the screencap)
"Akio Ohtori - RIP Oppo" (akioohtori)
11/15/2017 at 13:50, STARS: 1
“Perimeter road” “I just need a way to check the fence!”
"davesaddiction @ opposite-lock.com" (davesaddiction)
11/15/2017 at 14:01, STARS: 1
I was pretty proud of myself - ha! Like I said, it looks awesome. Good luck getting it for the price you want to give and have fun turning it into your little slice of “dream come true”.
"gmporschenut also a fan of hondas" (gmporschenut)
11/15/2017 at 22:32, STARS: 1
https://jalopnik.com/5156906/google-earth-reveals-coolest-driveway-ever
Does it snow where you live? if not add some chicanes.