Choosing my next house. How to pick a 'fixer-upper' ?

[startbyserving]

Backstory:
I've lived in my current house for 3 years. It was a foreclosure that we purchased from the bank. Being a fairly new house, we had pretty much nothing to do to the house other than put fresh paint on the walls (and the prior paint would have probably been okay was just showing some wear.)

What I've learned from being a(n ere type) homeowner is:
1. Utilities are way more expensive than you realize. In my apartment I could keep utilities at $60-$80 in the winter with no issues. $200-$300 was frequent for me the last few winters. (When I saw $300, extreme measures started being taken.) I no longer care for the vaulted ceilings all these newer houses have. (The perception of space). A fireplace will be a preferred item in next house.
2. I don't really appreciate how much houses cost. I'm doing a lot of thinking about whether I want to live in the city or a few miles out. If I live in the city, at least as close as the bus line I have the option of getting rid of my car and sharing with sig. other. Outside the city, I would have to keep my car unless self-employed. A consideration is areas. Sig other isn't going to let me get away with a questionable area. That means I'm stuck with finding a deal in a good area or outside the city.

Anyways, on to the Main Question. I know there are several people here that have bought less than perfect properties:
When purchasing a fixer-upper, what do look for and what do you avoid? (A house you plan to live in)

My perspective so far:
Holes in walls are an easy fix.
Flooring issues is one I'm good with. (I strongly prefer hardwood, and have a cousin that installs it. House needing flooring is perfect)

I fear foundation issues. I live in a Sink hole prone area. I'd rather not deal with any possible problems with this.

Mold/ Mildew. I've heard horror stories, so I'll have a tendency to avoid this. If a washer had leaked, would you move on? If there was something in an unfinished or partially finished basement? I like the idea of a walkout basement to store a few extra things, but I see finished basements as "A waste of money" / "A problem waiting to happen". - My area gets 45-50" of rain per year.

I'm leery of having to deal with lead based paint. Is this really that big of a deal if necessary precautions are taken? (Breathing masks, etc.)

Do you look for a good dry house that has cosmetic issues?
Is there an age of house you prefer? (Insert <houses built after 19xx are made cheap> here)

I've been doing a lot of research. Both online and driving through neighborhoods. (decision paralysis / information overload at times). I realize I will ultimately be the one that has to make the decision of what risks / fixes I'm comfortable with. Clearly I bought a foreclosure, so I am willing to take some risk. Even though it means I didn't get to do much learning, I'm glad I didn't have to sink money into it. I've heard that Habitat for Humanity could be a good place to learn some basic skills, so I'm looking into volunteering there. (I've read the experience and availability/need varies widely.)
It would be helpful to know what types of things other people have taken on.
What were the obvious problems?
How serious of a renovation was it?
What were the problems in houses that you passed on?

[sky]

Housing types are regional specific, so my comments may not apply in your area. In MI, the typical home is a wood frame home with a cement block basement.

I liked a wood two story home, rather than a one story ranch, so we looked in neighborhoods where those are available. I also like the farmhouse style house rather than a box type house. That is just personal preference.

I would not buy a house with basement structural problems or signs of severe water damage in the basement, which could indicate sewer backups or flooding.

The big cost items to repair are furnace, roof and major electric work.

If the furnace is an old octopus type, a converted coal burner, plan on replacing it with a high efficiency furnace. $7,000

Roofing is something needed every 15 years or so. I would not eliminate a house that needed roofing, they all do at some time, so assume that roofing is needed and budget accordingly. $15,000

Major electric work is needed if you see fuses in your electric box. You may be able to get by with a fuse system but it indicates that the electric system was built in a time of lower electric loads and not enough electric outlets, which leads to overloading the system and a danger of fire. You may not be able to do major electric work without also doing new drywall, which becomes a huge project.

Window replacement can be expensive. In cold weather areas, window replacement can warm up a room from drafts and eliminate traffic noise, so it improves the quality of life quite a bit and is worth it.

Sagging floors are common in older homes. Sometimes it is just due to age but sometimes there is a structural problem.

There are a lot of cosmetic projects which you could do, such as bathroom upgrades, kitchen remodels, porch additions or stairway improvements. If these items are in good condition and don't need changing, that is a big plus.

Look at the lot. If you like gardening, imagine how the sun will hit it in various seasons, and if there is enough room for your garden plans.

[startbyserving]

I know that roof cost and acceptance varies widely from area to area. Family actually just installed a metal roof over the existing asphalt roof on the Family Homestead. (Sufficient venting to install over the other roof) I think the second story is between 1500-1800 feet. With no labor cost and the extra trim to make it look nice, I think we we paid a little over $2000. I'm not sure what my uncle would charge me to travel 3 hours to my location and install a roof here, but the $15,000 estimate is encouraging if it could mean an advantage over other buyers. - In fact, that is such a huge price difference, I Googled "Roof replacement cost" to make sure you weren't referring to literally replacing the roof beyond the shingles. (Perhaps possible on some houses.) I live in a humid area, so checking for mold in attic should be a given and certainly offer accordingly or not at all if it is found.

I appreciate the input. My two issues, are health concerns and losing a lot of money. I need to choose carefully, I can learn to do the work. Hopefully a good inspector can give me an idea what to expect. I hope to be able to exclude a lot of houses prior to paying for inspections by using my own eyes and paying attention.

[Riggerjack]

Anything is fixable, however, it is important to know what you will be keeping. I do the framing and electrical, my wife does the plumbing and siding (she has better spacial perception, and is better at puzzles), I try to hire out Drywall, not cuz I can't do it, but because I'd rather pay someone else.
This can lead to us over committing to fixers. Make sure that what you will keep is worth the effort.

On the none obvious side, ventilation is key. Check your attic, roof is well vented? This directly ties to the life of your roof. Are your bathroom fans/dryers/stove hoods vented outside, or into the attic?

Caulk. Well done caulking looks good, provides a good deal. Homeowner, sloppy fixes with caulk, where the caulk is applied on the outside of the gap, then smeared around, is a sign of neglect, poor repairs, covering up what is likely to be more significant damage. Expect to open it up and see a horror show.

Side note, airtight wood stoves are great for heating, fireplaces are for movie sets and architecture magazines. Any heating device that uses combustion should have outside air piped in to feed the fire.

Good luck!

[saving-10-years]

In the UK so our building types are very different and also our concerns. But to answer your questions. We've renovated three houses all with different problems.

>>How serious of a renovation was it?
Took a dentists (no bath, kitchen, and with all sorts of structures you don't want) and turned this into a home. Took a farmhouse with windows missing, floors (parts of) missing, and severe black mould (again not inhabited in the usual sense) and turned that into a home. Rental property was more cosmetic (less time, less risk and less attachment). We've also done structural work to return a barn from a 16.5inch lean from the vertical to a solid upright structure. Converting that is likely to be next big job.

Its great if you enjoy renovation. We do, its a pastime and we could happily plan this with the same sort of enjoyment that others get out of planning holidays to exotic locations. We've chosen (when working and time was short) to stay in working on the house over Christmas/New Year (introvert heaven). Its like a huge complex 3D puzzle to work on together (ideally). If one of you resents the time spent on this then go for a smaller project.

>> What were the obvious problems?
>> >> What were the problems in houses that you passed on?
For UK readers on a budget steer well clear of historic/listed buildings. You will be constrained in how you can renovate and will need special consent for any repairs. Romantic - Yes. Easy/Quick/Cheap/Energy efficient - No. Investment may work if you can let it out but relatively difficult to sell. The only thing that we would be concerned about (we have bought wrecks - see above) would be foundation slippage or basements with damp problems. The cracks, subsidence issues are not simply a case of whether you can fix it but also whether anyone you sell to can get a decent mortgage or insurance. The problem may be mended but still not gone away.

We recently pulled out of purchase of a would-be rental because the title for shared access to the parking was not clear. The problem is that things like that may not be clear even with inspections. Luckily we had bought a conveyancing package that meant that we got all money for surveys and legal fees returned as the lack of sale was vendors fault. On the other hand you can negotiate on those fudgy issues (we did on the farmhouse) if you are going to be living there and think you can work with that problem.

[Riggerjack]

Since you mentioned roof and foundation issues, here are a few tips.

Concrete, modern foundations are a bear to fix. The forces involved really do require specialized contractors. Post and pier is very DIY friendly. Less stable, so more likely to be out of level, but within the capabilities of average DIY to fix. Slabs with problems should just be avoided.

3 tab, asphalt roofing can be overlaid on a previous 3 tab roof, once. After that, it is time to strip and repair, then reroof. So if it looks like a reroof is going to happen, check the gable edge of the roof to count layers.

Basements are great. Extra space, little extra value, good access for repairs/upgrades, and they don't have to be vented, so the space under the house is warmer in the winter, for lower heating costs. Generally, all house systems benefit from basements more than crawlspaces. It is certainly more pleasant to work in a basement than a crawlspace.

Again, good luck.

[startbyserving]

I have a million dreamy ideas floating around in my head. Recently Earthbag houses, and Aircrete houses have taken my interest. I have no intentions of venturing out into the wilderness/desert anytime soon, so those will remain fantasies. Once I think about it, I have trouble justifying spending $100k for a place to eat supper and sleep at night. Seems like one more expenditure that the masses overspend on without giving it a second thought. For now, I suppose it's the price of admission for living in / near town. (Not considering shared dwellings currently).


Our preferences:

House without vaulted or high ceilings. (If vaulted, must have a fireplace)
Fireplace with insert or wood burning stove stove strongly preferred. I've found very few inserts or stoves in my search.
Hardwood floors or any floors if they need replaced.
New enough or fair enough condition that we won't have major repairs. ($10,000-$20,000+)
Some work required to lower price. I don't like buying things at "retail".
1.5+ bath preferred. Can live with 1 bath if it is otherwise perfect.
1 or 2 story is fine. Some preference for 1 story.
Most houses we are looking at is between 900-1200 square feet. Tough to find much smaller than that.
Unfinished basement would be great, but not required. I prefer to avoid finished basements.
No problems with foundation
Garage - have some preference for garage, but not a deal-breaker. (Very nice place to keep litter box for cats)
Must be in an okay neighborhood, no duplexes or apartments next door. No drug deals next door.
Small yard would be fine, but must have room to plant hummingbird flowers that can be seen out the window.
- Should be a good value when considering these preferences

-We've gotten decision overload in many cases. Because we work on opposite sides of town we have a fairly large area to choose from (Total travel time doesn't change much within our city.)
My life experience with both renting and owning has been that "Price determines neighborhood" every rule has an exception but this certainly creates a challenge somewhat with smaller houses. The majority of the smaller houses I've found tend to be in more questionable areas. Low price attracts a certain variety of individuals. I managed to find one isolated subdivision mostly containing small houses with small yards. Everyone takes care of their property well and has just short of an 'artsy' feel. (Because the yards are small a large portion of the houses use the back yards for landscaping and flowers. The price is a fair amount higher on these houses, (100k vs 120k). I don't mind paying a little extra if sig. other would be happy. Issue here is every house I've seen in the area has either vaulted or high ceilings in the living area. They do all have fireplaces though.

Well this has kind of evolved and circled somewhat. I'll keep looking, and maybe I can get lucky on a house that someone doesn't want to have to keep through winter. - That's how I purchased the house I live in now. Was bank owned and made agreement in Sep / Oct. (General note, I still see bank owned homes in my area, but I certainly see fewer than in the past few years.)

[Riggerjack]

What exactly is your issue with high ceilings? Until mass produced sheet goods became common, high ceilings were the norm. Coincidentally, that is about the same time middle class housing started growing larger. You will have a small overlap of post WWII housing that is still small yet also has 8 foot ceilings. Generally, if you want small houses, you want the houses built before the depression. My 1916 four square home was 870 sq ft before the kitchen and bathroom were added after the war. It was above average size at the time it was built.

[startbyserving]

Big factor for smaller house choice is lower utility bills / total cost / environmental impact. We have both a summer and winter here, but about 70-80% of our annual HVAC expense is for heating. (Heat rises)

A fan in winter position helps, but only if the HVAC thermostat is warm enough for the fan not to create windchill / draft.

I have no idea what the percent cost difference is, but more cubic feet of space typically costs more even if minor. Ideal for me is to have sufficient space to live, not try and 'recreate outside inside' as I think many houses try to accomplish at some level. A large covered porch or patio room has much more diverse uses to me, without affecting utilities. I can accept high or vaulted ceilings if I have a fireplace. My Ideal would be regular ceilings with a fireplace. I strongly agree with the comment about basements. While there are many factors: My friend's house with a walkout basement drastically beat mine last winter. Insulation is biggest factor, but every little bit helps.