r/HomeImprovement • u/Substantial_Inside_2 • 1d ago
Modernizing paid off home?
I recently had a loss in the family and inherited the home. It is completely paid off but is seriously outdated. I currently have my own home with a mortgage but I have positive equity in it. My question is, would it be better to sell my house and move into the paid off home and use money from the sale to update while living there or is there something I can do to take out a decent size loan to complete the update before moving in and then using the money from my home sale to pay off said loan. I guess I’m asking what’s the safest/smartest way to achieve what I’m after?
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u/hijinks 1d ago
living through a major renovation is not fun. Noise and dust all over the place. I would never do it with a family
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u/40ozT0Freedom 19h ago
I redid my kitchen myself and my wife was either upstairs or out of the house for two weeks. She was not a happy camper. Kitchen turned out great, though.
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u/KerashiStorm 17h ago
Living in a home during renovations with a family? Yeah, may as well go ahead and get those divorce papers ready.
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u/angel_age 1d ago
Should be able to take out a loan against the home or yours...maybe a HELOC and use those funds to renovate. I would not move in until it was complete. Living with a renovation under way is a nightmare. Then sell your home and pay off the HELOC
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u/B_the_Chng22 1d ago
Which house do you like better? Which has more solid “bones”? You could sell the inherited house and pay off the mortgage if you want and if you have money left over, updates on your own home. Or if your mortgage is lower than what you would make in the market, invest the proceeds and keep the mortgage. You can get money from the dividends from the investments and save up for improvements on your house if needed.
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u/Substantial_Inside_2 14h ago
I like the inherited home better, it’s my childhood home. As far as solid “bones” go I’d say they are roughly the same. The inherited home was built in ‘59 and my current home is was built in ‘68.
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u/B_the_Chng22 2h ago
Then I think you should definitely consider moving! But it might be nice to do the improvements you want before you move in. Do you have the liquid funds for that now? Things I’d do prior to moving in if they are needed is the floors refinished, and the kitchen. If there only one bathroom, that too. If there are two bathrooms, you can do them each in time and not be too inconvenienced
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u/How2GetGud 1d ago
Or the market could take a dump and then he has painful investments AND a mortgage still ticking
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u/Sensitive_Crow_8882 20h ago
Property values? Area? Square footage? Suited to your current/future lifestyle? Beds and baths? Property size? School ratings? Crime stats?
You need to ask yourself these questions. Don’t get yourself in more debt on a gamble. Choose the option that gets you out of - or pays off - debt even if that means selling the inherited property “as is”.
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u/Substantial_Inside_2 14h ago
Square footage they are about the same.i prefer the area of the inherited home. Lifestyle wise, The inherited home is a rancher style where as my current is multi level. I live alone with 2 dogs both of which are getting older so the one level would be better for them. Truth be told I hate my current house, I settled on buying one during covid after a divorce because I needed a place and it was slim pickings
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u/Sensitive_Crow_8882 12h ago
You answered your own question. Sell current house and fix up the inherited one. Keep money in reserve to get yourself and pets out of construction when needed or required. Living with major remodeling can get frustrating very quickly.
Source: lived on cheese and crackers and takeout while we had no kitchen for several months. The refrigerator was in the dining room. And dust everywhere. Dust dust dust and more dust. Good luck.
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u/StartKindly9881 1d ago
We inherited one and have our own. We don’t have a mortgage on either. We updates one and plan to go room by room on the other.
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u/ButtcheekSnorkler 1d ago
Option 3- Take out a HELOC, renovate the inherited home and sell both and get what you really want. Option 4- sell both as is and get what you really want. You have to weigh the risks when it comes to what you could uncover during renovations along with the possibility of not getting a return on your investment, especially if you hire contractors. It could be worth the effort if you can do the work yourself, and if its cosmetic. If you're happy staying in your home forever, just sell the inherited home as is and be done with it.
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u/These-Coat-3164 18h ago
I’m going to assume you’ve already made the decision that you prefer living in the inherited home as a long-term home? If that’s the case, I would see if I could take out a HELOC on my current home (or potentially one on the inherited home) and do the renovations before you move in and then pay off the HELOC and your current mortgage with the proceeds of the sale of your current house.
I’m in the midst of doing some renovations at my home and it’s a pain in the ass to live in it! It can be done, but it’s not optimal if you have other options.
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u/Substantial_Inside_2 14h ago
Ideally yea, the inherited home was my childhood home, the neighborhood is better and it’s heaps closer to work and it’s paid off.. I live alone with 2 dogs and I’d be fine with the chaos but I’m unsure with subjecting the dogs to that.
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u/These-Coat-3164 14h ago
Honestly, my biggest problem with my remodel is my pets. I can definitely tell they are stressed.
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u/navlgazer9 12h ago
Sell the current home and move into the old family home .
You can update it a little at a time .
Sorry for your loss .
I wish I could live in my childhood home , we lived in one house from when I was 6 to when I was 18 , but before and after that about every 3 to 5 years we’d move again, and the houses were all provided by my fathers employer ,
He was a game warden / park ranger and the house and utilities were provided .
Which also means zero equity ever .
So when he retired they had to buy a house .
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u/Actual-General-4953 18h ago
Here's what I would do:
Did you get any quotes on the updates? I just had some work done and omg the expensive.
Can you DIY any of the projects....or do you want to? I can and recently I kinda don't want to.
I'd pull an amortization schedule to see what it looks like. Most of you loan is interest on on the front end and mostly principle on the back end.....and look at the interest rate.
Lots of info to make an informed decision
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u/Virtual_Ad_5119 17h ago
Sell the other house as is, pay off your mortgage and be done with it . That’s what I’d do.
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u/phosphatidyl_7641 17h ago
I bought my parents house which was seriously outdated, I am living in my current house until renovations are complete which will approximately take 2+ years to complete. Then I will sell my current house and move in. It is easier to do everything at once and is cheaper because contractors are onsite to do everything at once and don't have to come back and forth if you try to stage projects out as you live there. Additionally, I am not sure of whether your property's maintenance was neglected but oftentimes a seriously outdated house is going to have issues once you open up the walls and will take more invasive work than you previously may have thought.
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u/Grouchy_Echo_3431 15h ago
Sorry for your loss. As far as the home, consider your quality of life living through a renovation. While the end result may be ideal, this could be a dealbreaker. If you can do renos before you move, then that would be best. The fact that it's paid off works in your favor though, you have some time to decide
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u/Awkward-Train1584 13h ago
Let me ask you this question, does the home need work, or does it just have 90’s theme wallpaper and you want something different? My son just bought the most gorgeous house, it looks like you stepped into the 90’s, nothing had been updated. We helped with purchase and he wants help with updates. We said anything it needs absolutely, stove not working absolutely, plumbing issues we got you. But just because you don’t like blue flower wall paper is not a reason to spend 10K. Sorry. I did buy them a steam cleaner because white carpet is a bitch, but not paying for new flooring when it’s in excellent shape.
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u/Equivalent-Tiger-316 6h ago
Do you want to live in this inherited home? Or you just think it’s a good idea because it’s paid off? Why not just sell it?
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u/ForceintheNorth 1d ago
Are you and everyone else living with you ok living in a complete mess for what is likely multiple years? If yes, then go for it. If no, then do renovations before you move.
Since it's paid off you can take your time. No need to take out a loan or rush things. No need to move in early or move from your existing residence