It's been a very busy month and I haven't made the time to sit down and sort out my thoughts until now.
Nephew goes off to college in May.
Mother moves in to my Tucson house after I turn my carport in to an apartment for her.
But the more we thought about that, the more we decided that it wasn't ideal since my mother would be bored and dependent on me for things that she can do herself now like go to church, see her friends, go to doctor appointments, etc... The only thing that made sense was for me to move to her retirement town which is 45 minutes away. Safer streets, less traffic, familiar routines.
Nephew goes off to college in May.
Fix up Tucson house to sell and mother sells her house.
Move to my property temporarily.
Buy a house with mother near mother's current location.
I wasn't sure if I was even allowed to move to her town because it is mostly 55 and older housing. But, only one person in the household needs to be 55 and older so, yes, we can live there together. Then, I needed to figure out if there were regulations for pets. I have heard of homeowner's associations limiting pets to only 2 and I currently have 3 dogs and 2 foster dogs. I narrowed down the area that would work for both of us and the HOA does not have a pet limit so I'm good there as long as their barking doesn't annoy the neighbors. Now I am watching homes for sale. I have identified around 40 that have a large yard, as in more than .2 of an acre lot. They aren't for sale but maybe one of them will be by the time we are ready to buy.
And, to kick off this plan, I bought another house. This one is an investment. Since the house that I live in now would only get around $850/m for rent, I decided to buy a small house and rent it out to my tenant who is at my property in my mobile home for $600/m. He wants running water and accessibility to public transportation, and I want my mobile home back because I plan to move there temporarily and store more of my stuff there after I make it pest-proof.
Here's a little more explanation: I am emotionally invested in my Tucson house. I have toiled in the yard, fostered loads of dogs and puppies in it, housed my parents and nephew, visited with other family and friends. I don't want to rent it out and see other people change it. I want to sell it and never go back. Plus, the house is worth around $160K and I don't want to keep a mortgage on it so having that much money tied up in it does not work for my plan.
So, I took out a home equity line of credit for $70K and looked around for something small. Something that I would never live in and not get attached to it. But I have to back up again because I didn't start with the HELOC idea. I started just looking for some place for my tenant to move to. It was hard to find a place because he has two dogs and it is difficult to find someone else a place to live. Then I had the bright idea to look for something to buy. It would be win-win. I would keep a paying tenant and he would have a better place to live than my mobile home. The houses that I found in the areas that weren't either crime-ridden or way far out from civilization were all fixer-uppers and not able to be financed traditionally. Thus, the HELOC.
It took a month to apply for the HELOC and get the money. I was watching two houses but on the day my funds were available, both houses had multiple offers. I scoured the listings again, asked my tenant about areas that he wanted to avoid, and checked trulia.com for their crime rating. I found this little two bedroom, one bath house close to downtown and a block from the bus stop. I went out to look at it asap. My realtor said that the house was probably still available because it had a tenant. We couldn't see inside but I wanted to put in an offer anyway. The realtor wrote the offer up contingent on seeing the inside and there being no major issues. Then we waited for the tenant to leave, and waited, and waited. Finally he moved out and the inside was dirty with a few water hose leaks, cockroaches and some termites. My realtor made a list of things to be fixed and we waited some more. The closing day was getting close so I offered to take the house as-is for $1,000 off the price. The seller agreed and we proceeded with the sale for $64K. It's been a week now and my handyman has been painting and repairing. It's been treated for cockroaches and termites and all the junk is gone. We are focusing on the inside first so that my tenant can move in the first of the month.
|Needs some stucco repair.
|Dirty but functional.
|Water leaks and clogged drains.
|I don't want to know what was living in the couch.
Now you are caught up with my plans and rental house adventure. When I sell my Tucson house I will pay off the rest of the mortgage and the HELOC and have some leftover to put down on the house with my mother. I will also have 2 paid-off rentals giving me income. That's pretty awesome.