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Message
How to deal with living in a money pit? Feeling a bit stuck...
Posted on 9/29/26 at 12:49 pm
Posted on 9/29/26 at 12:49 pm
tl;dr - Currently in a money pit with some potential health hazards needing to be fixed. Problems keep popping up even when we fix stuff. We could sell for equity but the market would push us out of where we want to live and we'd end up spending more money on the mortgage than we do now.
We were one of the many who purchased a home in 2020 at a low interest rate. We're in one of the nicer suburbs of Birmingham and landed a deal with our landlord who was going through a divorce. He said he just wanted to get rid of the house and would sell it to us for $230k. Comps in the area were around $400k. A realtor friend said she couldn't believe he would sell it that cheap even knowing the house needed repairs and upgrades. We secured a 2.8% interest rate and felt we did well with our mortgage considering the state of the housing market at the time.
The house has been nothing but problems. Some of them health problems. We had major wood rot in the exterior wall of my daughter's bedroom. We replaced the windows and the wall, repaired the gutters and eaves, and remediated some mold that was growing inside the house.
We had to replace the entire HVAC system, furnace, and ductwork.
We repaired multiple pipes.
We sucked out the old insulation due to air quality issues and evidence of droppings. We air sealed the attic. We added blown in insulation.
We've dealt with mold in both bathrooms multiple times, spending a lot of money on mold remediation and replacing the bathroom fans and ductwork.
The Current Issues
The kitchen has been in dire need of an upgrade, and we saved up for a nice reno project that we're in the middle of. Nothing too fancy, but the original estimate was $40k. After demo, they realized they needed to remove the sheetrock. Behind the sheetrock is evidence of a massive former bug infestation. Most of the wall cavities are stained and there are thousands of droppings that spilled out.
Underneath the cabinet revealed 9x9 asbestos tile and we had the rest of the kitchen floor tested for asbestos yesterday. The technician said it looks like definitely asbestos considering the age of the house. Our contractor thinks we need to go through the abatement process because the cabinets will have to be cut if we put the hardwoods on top of the current flooring.
My daughter's carpet needs to be replaced, and who knows how much damage is underneath her carpet.
We also found a ton of droppings in the wall of a bathroom when we were doing the mold remediation. I figure there are droppings throughout the entirety of the house.
Most of our drywall has screw pops or cracks. Thankfully a foundation assessment didn't reveal any issues, but age, settling, and moisture has messed up a lot of the drywall.
We also noticed some leaks on the ceiling and got a roof assessment from a few companies. Both agreed that we need a new roof. One of them said the decking is out of code and needs to be replaced. The roof is only 13 years old, but it isn't under any kind of warranty.
I couldn't even tell you how many more issues this house is going to have.
Finances
Wife and I make $160k/year with teacher benefits in Alabama. Retirement pension plan is good, and I have $105k in a Roth IRA. We'll draw social security. My wife's parents have a shitload of money that she will inherit one day, but we don't make any plans based around that. Only thing that's helped with directly is our kids' college funds, so we're very grateful to have that space in our budget.
Zillow estimate says we could sell our house for $475k. I have no belief that is an accurate number because I'm sure it's not accounting for any visible drywall issues or asbestos or whatever else this house wants to throw at us.
We have typical suburban debt - house, $700 total/month in car payments, and the kids' braces. No credit card or student loan debt.
We have a HELOC with a $75k limit. I took $5k out just to preserve our savings, but I can pay that off in a se
If we wanted to stay in this area where our kids have grown up and if we wanted a house nicer than the one we have, we'd have to spend over $500k. Even going over to Hoover would mean we'd need around $400k at the least. That's assuming the house is nicer than this one. God forbid we just transfer to a different money pit to save some money on the mortgage.
With our equity, we could put approximately $250k down, but with the current 7.5% interest rates, we'd end up paying more money for a new house. Potentially a lot more money if we have to go over $500k for a new. I also don't believe we'd get $475k for the house even though the location is great.
Anyways - what would you all do? Sell and move? Keep pumping money? Move out and reno the whole house and move back in?
We were one of the many who purchased a home in 2020 at a low interest rate. We're in one of the nicer suburbs of Birmingham and landed a deal with our landlord who was going through a divorce. He said he just wanted to get rid of the house and would sell it to us for $230k. Comps in the area were around $400k. A realtor friend said she couldn't believe he would sell it that cheap even knowing the house needed repairs and upgrades. We secured a 2.8% interest rate and felt we did well with our mortgage considering the state of the housing market at the time.
The house has been nothing but problems. Some of them health problems. We had major wood rot in the exterior wall of my daughter's bedroom. We replaced the windows and the wall, repaired the gutters and eaves, and remediated some mold that was growing inside the house.
We had to replace the entire HVAC system, furnace, and ductwork.
We repaired multiple pipes.
We sucked out the old insulation due to air quality issues and evidence of droppings. We air sealed the attic. We added blown in insulation.
We've dealt with mold in both bathrooms multiple times, spending a lot of money on mold remediation and replacing the bathroom fans and ductwork.
The Current Issues
The kitchen has been in dire need of an upgrade, and we saved up for a nice reno project that we're in the middle of. Nothing too fancy, but the original estimate was $40k. After demo, they realized they needed to remove the sheetrock. Behind the sheetrock is evidence of a massive former bug infestation. Most of the wall cavities are stained and there are thousands of droppings that spilled out.
Underneath the cabinet revealed 9x9 asbestos tile and we had the rest of the kitchen floor tested for asbestos yesterday. The technician said it looks like definitely asbestos considering the age of the house. Our contractor thinks we need to go through the abatement process because the cabinets will have to be cut if we put the hardwoods on top of the current flooring.
My daughter's carpet needs to be replaced, and who knows how much damage is underneath her carpet.
We also found a ton of droppings in the wall of a bathroom when we were doing the mold remediation. I figure there are droppings throughout the entirety of the house.
Most of our drywall has screw pops or cracks. Thankfully a foundation assessment didn't reveal any issues, but age, settling, and moisture has messed up a lot of the drywall.
We also noticed some leaks on the ceiling and got a roof assessment from a few companies. Both agreed that we need a new roof. One of them said the decking is out of code and needs to be replaced. The roof is only 13 years old, but it isn't under any kind of warranty.
I couldn't even tell you how many more issues this house is going to have.
Finances
Wife and I make $160k/year with teacher benefits in Alabama. Retirement pension plan is good, and I have $105k in a Roth IRA. We'll draw social security. My wife's parents have a shitload of money that she will inherit one day, but we don't make any plans based around that. Only thing that's helped with directly is our kids' college funds, so we're very grateful to have that space in our budget.
Zillow estimate says we could sell our house for $475k. I have no belief that is an accurate number because I'm sure it's not accounting for any visible drywall issues or asbestos or whatever else this house wants to throw at us.
We have typical suburban debt - house, $700 total/month in car payments, and the kids' braces. No credit card or student loan debt.
We have a HELOC with a $75k limit. I took $5k out just to preserve our savings, but I can pay that off in a se
If we wanted to stay in this area where our kids have grown up and if we wanted a house nicer than the one we have, we'd have to spend over $500k. Even going over to Hoover would mean we'd need around $400k at the least. That's assuming the house is nicer than this one. God forbid we just transfer to a different money pit to save some money on the mortgage.
With our equity, we could put approximately $250k down, but with the current 7.5% interest rates, we'd end up paying more money for a new house. Potentially a lot more money if we have to go over $500k for a new. I also don't believe we'd get $475k for the house even though the location is great.
Anyways - what would you all do? Sell and move? Keep pumping money? Move out and reno the whole house and move back in?
Posted on 9/29/26 at 1:00 pm to StringedInstruments
Replace the roof and most of those other issues stop happening I would bet
What year was the house built? If a house was built after 1980 or so I wouldn’t touch it
ETA: I know you already realize this in the pit of your stomach but everyone who bought a house for cheap interest is stuck in that house for life
Houses have appreciated like 50% since then even in shitty markets. I know it sucks but be thankful because nobody younger than 30 will ever own a house
What year was the house built? If a house was built after 1980 or so I wouldn’t touch it
ETA: I know you already realize this in the pit of your stomach but everyone who bought a house for cheap interest is stuck in that house for life
Houses have appreciated like 50% since then even in shitty markets. I know it sucks but be thankful because nobody younger than 30 will ever own a house
This post was edited on 9/29/26 at 1:05 pm
Posted on 9/29/26 at 1:02 pm to el Gaucho
quote:
What year was the house built?
House was built in 1958.
Posted on 9/29/26 at 1:06 pm to StringedInstruments
Where do you live in Bham if you don’t mind me asking? Also, have you tried going through your homeowners insurance on some of this? Roofing for example usually can get covered if there is certain damage from natural occurrences I believe like hailstorms.
Wear and tear items will not be covered but I would look into this if you haven’t already.
Wear and tear items will not be covered but I would look into this if you haven’t already.
Posted on 9/29/26 at 1:09 pm to AUtigerNOLA
quote:
Where do you live in Bham if you don’t mind me asking? Also, have you tried going through your homeowners insurance on some of this? Roofing for example usually can get covered if there is certain damage from natural occurrences I believe like hailstorms.
Vestavia area but not incorporated.
We have All State. Roofing companies both said we should have switched to Alfa a long time ago.
We don't have law and ordinance coverage. There is pretty significant windstorm damage, and there's documentation of 60+ mph winds in the last few months. But the roofer said All State at best will replace those individual shingles.
This post was edited on 9/29/26 at 1:10 pm
Posted on 9/29/26 at 1:23 pm to StringedInstruments
Yes Alfa has been great. I would still inquire on having the homeowners cover some of it and getting the roofing company to explain the issues that generally are covered under insurance.
Since you live in Vestavia, you have some perks in the resale value. So even if the $475k seems high, someone could pay it and renovate despite the issues. If it’s me, I would probably reno vs buying a new house with the current market and rates unless you just would like a newer built home.
Down the road your property would sell great regardless and you would get the money you put in from renovating from my observation.
Since you live in Vestavia, you have some perks in the resale value. So even if the $475k seems high, someone could pay it and renovate despite the issues. If it’s me, I would probably reno vs buying a new house with the current market and rates unless you just would like a newer built home.
Down the road your property would sell great regardless and you would get the money you put in from renovating from my observation.
Posted on 9/29/26 at 1:23 pm to StringedInstruments
I’m not sure what the right answer is now.
I would imagine any potential buyers and their lenders are going to have an inspector look for everything.
Just sitting here, I’d probably get with a knowledgeable person and ask “what has to be repaired to make this house habitable?”
I would imagine any potential buyers and their lenders are going to have an inspector look for everything.
Just sitting here, I’d probably get with a knowledgeable person and ask “what has to be repaired to make this house habitable?”
Posted on 9/29/26 at 1:40 pm to StringedInstruments
Houses you live in long term are money pits. It is the joy of owning a home. You'd probably be shocked how many other homes have similar issues that just are not discovered yet. I think the only surefire way to avoid this is to buy a new home and take great care of it yourself. Most people are crappy homeowners and have no idea what is going on with it so these things do not get nipped in the bud.
If you generally like the area and the layout of the house, just keep getting through it.
If you generally like the area and the layout of the house, just keep getting through it.
Posted on 9/29/26 at 2:29 pm to StringedInstruments
Have you investigated which of those problems you’ll be mandatorily required to disclose to potential buyers?
If the house is limited to cash sale buyers, keeping it is probably your only option.
If the house is limited to cash sale buyers, keeping it is probably your only option.
Posted on 9/29/26 at 3:10 pm to StringedInstruments
Not a magic bullet but DIY can save a ton. In many instances labor will be 50% of repair costs.
Posted on 9/29/26 at 4:46 pm to StringedInstruments
I’ve inspected hundreds of houses and never been in one without any mold. Figure out where the moisture is coming from that causes the mold to grow and stop or mitigate it. I personally would avoid making a mold remediation company rich for something I could do myself.
Posted on 9/29/26 at 5:07 pm to el Gaucho
quote:
I know it sucks but be thankful because nobody younger than 30 will ever own a house
When will this happen and why?
Posted on 9/29/26 at 9:03 pm to StringedInstruments
quote:holy shite, you lived in a house for a while and had no idea what kind of shape it was in?
and landed a deal with our landlord who was going through a divorce. He said he just wanted to get rid of the house
Bet your husband was pissed
Posted on 9/29/26 at 9:27 pm to SuperSaint
quote:
holy shite, you lived in a house for a while and had no idea what kind of shape it was in?
Bet your husband was pissed
Never an issue when you live in your in laws house
Posted on 9/29/26 at 10:14 pm to Mingo Was His NameO
quote:can’t believe someone let you marry their daughter
Never an issue when you live in your in laws house
Posted on 9/30/26 at 5:23 am to SuperSaint
quote:
holy shite, you lived in a house for a while and had no idea what kind of shape it was in?
Well…no we didn’t know there was asbestos in the floors, bug droppings behind the sheetrock and in the attic insulation, or jacked up roof decking. Or that the exterior wall would be completed rotted when we went to replace a few windows. Or that the bathroom fans didn’t vent outside.
Some of the issues we expected. But the inspection we paid for was absolutely criminal. My only thought is that he assumed we were 100% going to buy the house since we were renting it already, so he just did the inspection as quick and easy as possible.
Because he only marked a few cosmetic issues with the house.
Posted on 9/30/26 at 5:38 am to StringedInstruments
Houses are a money pit indeed.
To me, this sounds like shitty inspection which is strange because those guys are usually trying to sell their own handy man services. I moved into a 1980 home in 2020 and the inspector pointed out every little thing and gave me his business card at the end.
Also, not trying to be an ahole but “droppings in the attic” means you removed and replaced all insulation? The vibe of that full write up sort of feels like you are being taken advantage of in certain situations and also don’t know much about what’s normal/maintaining stuff yourself so just replace everything to the fullest extent possible for peace of mind which of course is very expensive. Obviously certain stuff you had to do but still.
To me, this sounds like shitty inspection which is strange because those guys are usually trying to sell their own handy man services. I moved into a 1980 home in 2020 and the inspector pointed out every little thing and gave me his business card at the end.
Also, not trying to be an ahole but “droppings in the attic” means you removed and replaced all insulation? The vibe of that full write up sort of feels like you are being taken advantage of in certain situations and also don’t know much about what’s normal/maintaining stuff yourself so just replace everything to the fullest extent possible for peace of mind which of course is very expensive. Obviously certain stuff you had to do but still.
Posted on 9/30/26 at 7:40 am to StringedInstruments
Not a question to your main question here but I’m curious….why did you draw on a HELOC just to put it in a savings account? Unless the rate on the savings account is the same(which I know it’s not)? Borrowing at 8-10% to save at 3-4%?
Small amount so not a big deal, but curious why you did this.
Small amount so not a big deal, but curious why you did this.
Posted on 9/30/26 at 7:54 am to CalcuttaTigah
quote:
To me, this sounds like shitty inspection
Alabama is a buyer beware state. You can fill the walls with mice and rattlesnakes before selling if you like. Getting quality inspectors is key as they are not nearly as beholden to the court system as most other states.
That said, given that you bought during covid you are being paid to live there. 2.8% is and will continue to be below the real rate of inflation for quite some time. Additionally, I'd struggle to leave a 1958 house just to triple my interest rate and end up in something from the 80s or 90s with hollow core doors and other signs of cheap construction.
The mold is a big deal. You need to remediate that. Asbestos is only a big deal if pulverized and inhaled but you still probably want to get it out of there. My advice would be to price and budget all the needed renovation and do it over time starting with the roof and mold as those are interrelated.
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