When I first started looking at lots near the ocean, something became really apparent. Either you had to buy a pre-exisiting house, or you had to buy a big lot in a less-than-desirable location. (Think "marsh views" -- aka "your property backs up to a mosquito-infested swamp most of the year and you have to drive to the beach.")
Either way, this was more money than I could spend. I decided that the dream was to be able to WALK TO THE GOOD BEACH, and secondly, be able to afford it!
So I kept stalking the listings. Then I saw this:
You should have read the listing. It was hilarious. Basically lots of warnings about how it wasn't suitable for rehab (true), and when I called the agent I found out the following information:
#1. The house was sitting on a 50'X47' lot that had been "grandfathered in"
#2. The house could not be rehabbed past $5,000 or the new FEMA regulations would kick in (requiring the house to be lifted off the ground several feet and moved within new setbacks.)
#3. The new setbacks were 20' from the front and 10' on all sides. This meant that any new structure had to fit entirely within a 24'X27' box. That includes the exterior staircase to get from ground level to the front door.
Needless to say, combining all of that info with the condition of the wreckage, this was absolutely a tear-down.
But here's the good part. Not only would a prospective buyer have to tear down the mess, and rebuild a tiny house several feet off the ground -- they couldn't get a loan to do it without the bank requiring at least 40% down on a new construction loan that would have to be completed within a year. (I think it was 40%, if I remember correctly. Regardless it was some huge number and I didn't have that much cash.) The bank would never have given a regular home loan on this mess, since they were going to send their own appraiser to assess the property, and no insurance agent would cover it either.
The only person who would be able to use this lot was someone who #1. had enough cash to buy it without the bank, and #2. could build a nice house on a footprint that tiny. It had to be bigger than the 1-bedroom 440 sq ft condos nearby to make it worth the effort.
Let me tell you what -- that poor realtor. Even though I told her it was the only thing on the whole island that I was interested in, she kept trying to get me to look at a duplex that was 80k more. She could not understand why a single mom with 3 kids was so obsessed with that pile of crap.
If I were a horse in the Kentucky Derby, my name would be Roll Me a Fat One.
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Either way, this was more money than I could spend. I decided that the dream was to be able to WALK TO THE GOOD BEACH, and secondly, be able to afford it!
So I kept stalking the listings. Then I saw this:
You should have read the listing. It was hilarious. Basically lots of warnings about how it wasn't suitable for rehab (true), and when I called the agent I found out the following information:
#1. The house was sitting on a 50'X47' lot that had been "grandfathered in"
#2. The house could not be rehabbed past $5,000 or the new FEMA regulations would kick in (requiring the house to be lifted off the ground several feet and moved within new setbacks.)
#3. The new setbacks were 20' from the front and 10' on all sides. This meant that any new structure had to fit entirely within a 24'X27' box. That includes the exterior staircase to get from ground level to the front door.
Needless to say, combining all of that info with the condition of the wreckage, this was absolutely a tear-down.
But here's the good part. Not only would a prospective buyer have to tear down the mess, and rebuild a tiny house several feet off the ground -- they couldn't get a loan to do it without the bank requiring at least 40% down on a new construction loan that would have to be completed within a year. (I think it was 40%, if I remember correctly. Regardless it was some huge number and I didn't have that much cash.) The bank would never have given a regular home loan on this mess, since they were going to send their own appraiser to assess the property, and no insurance agent would cover it either.
The only person who would be able to use this lot was someone who #1. had enough cash to buy it without the bank, and #2. could build a nice house on a footprint that tiny. It had to be bigger than the 1-bedroom 440 sq ft condos nearby to make it worth the effort.
Let me tell you what -- that poor realtor. Even though I told her it was the only thing on the whole island that I was interested in, she kept trying to get me to look at a duplex that was 80k more. She could not understand why a single mom with 3 kids was so obsessed with that pile of crap.
If I were a horse in the Kentucky Derby, my name would be Roll Me a Fat One.

























