lonecity.com

Last week I was setting alone in a restaurant escaping the snow and dreading the thought of having to go back to work after lunch.  A rather chatty fellow came in.  The poor guy must have really needed to vent.  Over the next half hour I absorbed what seemed to be his whole life story.  He was in the city to meet with a lawyer because he was bieng sued.  (on a side note, have you ever noticed that anyone getting sued feels like their bieng picked on.  It doesn’t matter what they did to get sued, its always the other guy’s fault….)  So this complete stranger is telling me all about how he is expecting to settle and has already started selling everything he owns.  He went on and on about the truck, trailer, four wheelers, and the small summer house in the country.  I managed to escape politely as he started a conversation on his cell phone.  While I don’t aim to eavesdrop the guy was so loud I couldn’t help but take in his words as I was picking up to leave.  He was discussing the sale of his home in a rural southern utah town for $40,000.

This comment out of the blue awoke something in me that had been dormant for quite some time now.  I’ve been so busy with work, life, and starting my own business, that I had almost forgotten about my dream to have a small country home.  I suppose as I get older I find the Green Lifestyle more appealing.  I have thought more than once it would be nice to raise a couple of chickens and a cow for fresh eggs and milk.  With a garden big enough to be self sufficient I might even shed the pale as death skin for a more tan self.  I would even go so far as to wish for an off the grid power system.  A couple of solar panels and a windmill or two.  Ok I’m a bit of a hermit.

The number 40,000 stood out in my mind.  I have long known that rural county realestate could go for that cheap.  The price is balanced by the location.  With a 40k loan a house payment could be as little as $300 a month.  What offsets that is that you can’t get a big city job and live in a small country home.  Commuting two or more hours a day makes up for the difference in cost of fuel, maintenance, and time.  What awoke in me was the this solitary thought.  “As my online business comes into its own this lifestyle just might be a real possiblilty.”

My present home is valued at about $130,000 thanks to generous housing value increases, and I owe $85,000 between the first mortgage and the home equity line.  I’m debt free other than my home.  The money on the equity line was borrowed against the home to start my business.  A quick check of the math shows that this is possible but it can’t be that easy can it?  130k - 85k = 45k  So I sell my current home, pay off the debt and buy a home in the country with whats left.  I would have to lose my city job and focus 100% of my efforts on my online business.  I would also have to find a good location in the country.  Even if I could live off the grid I need internet access to run my business.  I’ve tried using dial-up after having high speed and it just aint happening.

 Since this is the first post in my blog, I’m asking the world what they think.  Should I go for it? I know my house’s valuation but I am sure it will need some improvement as well as time to sell at the full face value.  I know myself well enough to know that some of the things that need done won’t happen until I move out.  I can’t take a bathroom or kitchen out of commission while I spend a week fixing it up.  I absolutely hate visiting family and could not bear the thought of staying with someone if I found myself homeless during the buy and sell process.  This leaves me with a few options. I could move out and rent while I sell the house running up costs until I buy the new one.  I could refinance the city house using a first and second mortgage to its full value and use the cash to buy the second home.  The latter sounds like the natural choice, but it throws up red flags.  What happens when I commit to buy a second home and I can’t sell the first one for as much as I expect? 

 As far as finding a new place I’ve already started dreaming about it.  I’ve stumbled through realestate listing sites online and it seems I shouldn’t have a problem finding a house to fit my needs.  I don’t mind living in a house built around the 40’s or 50’s and I’m handy so there are plenty of options.  Still I would like to hold out for a place with a barn or similar structure.  Norm Abrahms and David Marks have no idea just how I envy them.  (for those who don’t know they both host woodworking shows on diy network and have shown off very nice woodworking shops built in converted old barns)  I look at my little 8′x10′ toolshed and my jealosy slowly turns to rage.  Overall I expect it may take a year of watching the listings to find just the right place at the right price.

As I write this a possible third approach comes to mind.  What if I were to keep both houses?  I am sure with my city job and my fledgling business I could afford the payments on a 140k loan.  I could have the dream home in the country on weekends without giving up the city convenience.  I’m sure I would get sick of raising chickens sooner or later anyways.  Just the thought digs at me though.  I am a cheapskate at heart.  I’m the kind of guy who buys non name brand goods and rough toilet paper to save a buck.  The very thought of indulging myself with a second housepayment seems sick.  Still it seems the best overall option.  Things would be tight and  wouldn’t have much spare time, but I could have everything I want, stay within my budget, and build equity on two homes at once. 

Please feel free to share your comments.  I’m new to this whole “blog” thing and I’d like to know what your thoughts are about both my blog and my dilemma.