FranLab is getting evicted

[james_s]

This has Franlab written all over it!

That looks totally cool, and it seems like a bargain too. You couldn't buy a 1 bedroom studio condo in a run down building around here for that price.

[EEVblog]

$79k for an almost 3000sqft place if she moves to Reading 80km out from Philly.
https://www.loopnet.com/Listing/1262-Cotton-St-Reading-PA/23133224/

Reading even has a local LGBT centre
https://www.lgbtcenterofreading.com/

To me that's an absolute no-brainer unless there are drive-by shooting every weekend or something.
She could probbaly crowd source the entire $79k to buy it.

[EEVblog]

I'm addicted, I can't stop!
$148k for 3500sqft in 2 commercial spaces + apartment + garage, again only 80km away.
https://www.loopnet.com/Listing/1217-1219-S-Main-St-Phillipsburg-NJ/24090728/

[Cerebus]

Edit: Reading the post that came in while I was typing this, it sounds like maybe things have changed. Sounds a lot like Seattle in terms of exploding housing prices and scant inventory. I'm not even sure where all the people are coming from.

Well it's bit late in life to be having to explain this to you, but: When a Mommy and a Daddy love each other very much ... 

[Cerebus]

This has Franlab written all over it!

https://www.loopnet.com/Listing/1978-Federal-St-Camden-NJ/23620532/

Yeah, but I can hear anyone I know from the Northeast US going "But it's in Jersey!".

[Cerebus]

$79k for an almost 3000sqft place if she moves to Reading 80km out from Philly.
https://www.loopnet.com/Listing/1262-Cotton-St-Reading-PA/23133224/

Reading even has a local LGBT centre
https://www.lgbtcenterofreading.com/

To me that's an absolute no-brainer unless there are drive-by shooting every weekend or something.
She could probbaly crowd source the entire $79k to buy it.

If you scroll down a bit there's another $45,400 in property taxes - I presume annually (James, care to offer an explanation of how property taxes work in the US?).

[EEVblog]

$79k for an almost 3000sqft place if she moves to Reading 80km out from Philly.
https://www.loopnet.com/Listing/1262-Cotton-St-Reading-PA/23133224/

Reading even has a local LGBT centre
https://www.lgbtcenterofreading.com/

To me that's an absolute no-brainer unless there are drive-by shooting every weekend or something.
She could probbaly crowd source the entire $79k to buy it.

If you scroll down a bit there's another $45,400 in property taxes - I presume annually (James, care to offer an explanation of how property taxes work in the US?).

  for a property valued at $80k? How is that even possible?
 I knew property taxes are a PITA in the US, and many people move states beceause of it, but I thought like 10% was considerd very high?

New Jersey one would likely be the state average of 2.4%?

[EEVblog]

This has Franlab written all over it!

https://www.loopnet.com/Listing/1978-Federal-St-Camden-NJ/23620532/

Yeah, but I can hear anyone I know from the Northeast US going "But it's in Jersey!".

In any case it seems that one is under contract. I really like the other one in Jersey.

[Cerebus]

  for a property valued at $80k? How is that even possible?
 I knew property taxes are a PITA in the US, and many people move states beceause of it, but I thought like 10% was considerd very high?

New Jersey one would likely be the state average of 2.4%?

Kind of why I appealed to James for some local knowledge because I haven't a clue how that works. For all I know that assessment could represent a one time purchase tax, an annual tax, or a tax levied every 5/10 years. It's the kind of thing that you're expected to understand before you read the listings and is opaque to "furriners" like thee and me.

[Red Squirrel]

Property taxes can be insane in some places.  Not any better here in Canada.  Our cinema is for sale for $1 but taxes are showing as 50k/year.  My guess is with covid they lost so much money and owe backtaxes so they just want to get rid of the building and buyer probably has to pay the taxes.  The only logical thing I can see happen is the building gets converted to housing.     Taxes in my city go up each year too which is insane.   Recently bough 40 acres in an unorganized township as I know I won't be able to afford to stay in my house forever and I want more land.  Unorganized townships don't require permits or any of that BS either which is nice and taxes are around $100/year instead of like $5000+ and continuously going up.

[nctnico]

Either way if I were in her position with regards to housing, I would put the youtube channel on the back burner and look for a job, any job that will pay the bills.

If I was in the same position, the last thing I'd want to do is go look for a real job. When working for yourself for so long, it would be very hard to go back working for the man 9-5. You'd have to exhaust every possible opportunity first.

And yet getting a real job (even if it is part-time) is the sensible thing to do if being self employed no longer pays the bills. Beats poverty or even living on the street. There is this movie with Will Smith called 'The Pursuit of Happyness' where the main character keeps on chasing his dreams and destroys his family in the process. Ofcourse this is fiction (in the very end he succeeds) but for me this movie has a clear message: get your head out of your ass and be realistic!

[EEVblog]

And yet getting a real job (even if it is part-time) is the sensible thing to do if being self employed no longer pays the bills.

The thing is her income does seem to be paying the bills, and she implied it's enough to pay a mortgage. The problem is not being able to get a mortage and "get ahead" of the mouse wheel that is renting.

[Nusa]

$79k for an almost 3000sqft place if she moves to Reading 80km out from Philly.
https://www.loopnet.com/Listing/1262-Cotton-St-Reading-PA/23133224/

Reading even has a local LGBT centre
https://www.lgbtcenterofreading.com/

To me that's an absolute no-brainer unless there are drive-by shooting every weekend or something.
She could probbaly crowd source the entire $79k to buy it.

If you scroll down a bit there's another $45,400 in property taxes - I presume annually (James, care to offer an explanation of how property taxes work in the US?).

  for a property valued at $80k? How is that even possible?
 I knew property taxes are a PITA in the US, and many people move states beceause of it, but I thought like 10% was considerd very high?

New Jersey one would likely be the state average of 2.4%?

I think you're confusing yourself with the word "assessment", probably because of usage differences on your sides of the pond. In this case, it refers to what the property is currently assessed (=valued) at (land+improvements), for tax purposes. However, a sale usually generates an automatic reassessment to the purchase price, so it's a moot point for the buyer. Worth noting that New Jersey is one of the highest property tax states in the US. Significantly higher than Pennsylvania anyway.

[nctnico]

And yet getting a real job (even if it is part-time) is the sensible thing to do if being self employed no longer pays the bills.

The thing is her income does seem to be paying the bills, and she implied it's enough to pay a mortgage.

But up to what extend? It also looks like Fran hasn't been able to save up for a downpayment. I'm also not convinced that it is impossible for her to get a mortgage. Likely she is presenting her income the wrong way to banks; as if it she is not running a business but messing around a bit with Youtube and Patreon. In the end all banks care about is that you have a steady income from an activity you are serious about.

[Bud]

We are arguing a lost case here. If the person is that stabborn just leave her alone. And people should stop trying to feed the dead horse by offering their spare change.

[bdunham7]

for a property valued at $80k? How is that even possible?
 I knew property taxes are a PITA in the US, and many people move states beceause of it, but I thought like 10% was considerd very high?

That is the current tax assessment (value) that the annual tax is based on.  The actual tax would probably be 2-3% of that, which is on the high side.  California would be ~1%, but the values are much, much higher.  10% property tax would cause a rebellion!

[bdunham7]

I'm also not convinced that it is impossible for her to get a mortgage. Likely she is presenting her income the wrong way to banks; as if it she is not running a business but messing around a bit with Youtube and Patreon. In the end all banks care about is that you have a steady income from an activity you are serious about.

Actually it can be quite difficult here for the self-employed.  It isn't just a matter of a banker willing to listen and use some common sense--most affordble lending programs have pretty rigid requirements due to government regulation and investtor demand.  For a purchase of a mixed-use property, she is probably excluded from any residential mortgage program and would need to have a 40% down payment, then pay an interest rate 3-4% higher than a regular residential mortgage, all at an amortization rate of 20 years or less and often on 'balloon' terms, where the loan is amortized for 20 years, but is actually due in 5--so you need to refinance every 5 years. 

[thinkfat]

It's the same everywhere. If you're a "standard issue" employee with a steady income and a good credit record, you'll get a mortgage (10 years fixed interest rate) for reasonable conditions. Especially with your house as a safety. Even better if you're state employed. Self-employed is a real issue. Even if you have 50 employees and turn over a million each year, banks are going to add a premium to cover their risks. A sketchy setup like FranLab doesn't stand a chance, unless you're desperate and ready to accept completely unreasonable conditions. Hasn't gotten easier after the Lehman Brothers defaulted.

[nctnico]

I'm also not convinced that it is impossible for her to get a mortgage. Likely she is presenting her income the wrong way to banks; as if it she is not running a business but messing around a bit with Youtube and Patreon. In the end all banks care about is that you have a steady income from an activity you are serious about.

Actually it can be quite difficult here for the self-employed.  It isn't just a matter of a banker willing to listen and use some common sense--most affordble lending programs have pretty rigid requirements due to government regulation and investtor demand.  For a purchase of a mixed-use property, she is probably excluded from any residential mortgage program and would need to have a 40% down payment, then pay an interest rate 3-4% higher than a regular residential mortgage, all at an amortization rate of 20 years or less and often on 'balloon' terms, where the loan is amortized for 20 years, but is actually due in 5--so you need to refinance every 5 years.

Probably, but an easy way around is to buy a residential property with a big garage / shed. Plenty of companies working from garages / sheds.

It's the same everywhere. If you're a "standard issue" employee with a steady income and a good credit record, you'll get a mortgage (10 years fixed interest rate) for reasonable conditions. Especially with your house as a safety. Even better if you're state employed. Self-employed is a real issue. Even if you have 50 employees and turn over a million each year, banks are going to add a premium to cover their risks. A sketchy setup like FranLab doesn't stand a chance, unless you're desperate and ready to accept completely unreasonable conditions. Hasn't gotten easier after the Lehman Brothers defaulted.

That is nonsense. I have refinanced my mortgage last year and all I had to do was prove that I had a steady income during the last 3 years. A quick Google reveals that the US is more or less the same.

[thinkfat]

Well, if you say so. I've been through this in 2011 when we built our house. You mentioned that you "refinanced" your mortgage, so clearly the proof of income wasn't the only thing that worked for you.

[Sal Ammoniac]

She seems very set on staying in Philly, and I've tried to talk her out of that before to no avail.
If it was me I'd be on the LGBT forums (I assume there are such things) and find a smaller cheaper city that is already proven to be LGBT friendly. Philly can't be the only place she can feel safe.

Frisco is also a good place for that, but housing prices out here are insane compared to most of the country.

[nctnico]

Well, if you say so. I've been through this in 2011 when we built our house. You mentioned that you "refinanced" your mortgage, so clearly the proof of income wasn't the only thing that worked for you.

I went to a different bank where I wasn't a customer. So basically an entirely new mortgage for a new customer. Ofcourse it is easier to finance an existing house compared to one that needs to be built. I also didn't have to finance 100% of the current value. Alternatively; having money to put a significant downpayment on a house certainly helps to get a mortgage.

[bdunham7]

A quick Google reveals that the US is more or less the same.

 

[james_s]

If you scroll down a bit there's another $45,400 in property taxes - I presume annually (James, care to offer an explanation of how property taxes work in the US?).

They're based on the value of the property, so in my case my property taxes have been going up by leaps and bounds over the past 10 years, I honestly don't understand why people get so excited about the value of their home increasing, it's only wealth on paper unless you're able to sell it and live somewhere cheaper.

Anyway it's never a situation I've been in, but I believe a property can come with back-taxes owed on it, so for example if someone doesn't pay their property taxes for one reason or another and they die or skip town, the tax bill is still tied to the property and becomes the responsibility of the next owner. Again not a situation I've been in but that's how I recall it being explained. After my dad died we found out he had made an error and owed over $20k in federal taxes which were still owed even though he was no longer around to pay them. Uncle Sam gets his cut one way or another.

[james_s]

Well it's bit late in life to be having to explain this to you, but: When a Mommy and a Daddy love each other very much ... 

LOL 

I know where people come from in that sense, but that doesn't explain the massive influx in just the past 20 years or so, or the equally massive increase in housing prices. From the data I've seen, actual population growth has slowed considerably, although still far from enough. Having grown up in this region I'm seriously contemplating leaving once I can retire. I love the climate and geography but I'm suffocating under the masses of people and really miss the days when there was more green open space and I could actually enjoy driving somewhere and not get caught in gridlock even at odd hours of the day and night.