Shop/house

[Case IH]

Ok, long story short, I'm 19, work full time and completed tech school last spring. I'm looking to move out, but the idea of renting a duplex or apartment is kind of ubsurd to me. Why pay money for something and wind up with nothing in the end. Not to mention I have quite a few toys (lifted duramax, snowmobile, IMCA Sport Mod, 24ft enclosed trailer) that wouldn't work well at a duplex or apartment. So I'm thinking why not find some land somewhere, just like 3-5 acres and put up something like 30x72 heated shop and then finish out a portion of it into an apartment? I have a friend who lives in something just like this and it's maybe 1/3 shop and 2/3 apartment. Obviously I'd have to look into local ordinances to see what insurance and tax stuff would look like depending on how much is apartmebt vs shop. Obviously this won't be cheap cheap but it'll be cheaper than a house and once it's paid off or I'm in a better position I can build a house and still have a nice place for guests or parties.

http://www.menards.com/main/mobile/...ts/30-x-72-x-14-workshop/p-1495967-c-9901.htm

This is somewhat what I'm looking at but I'm sure this would be the cheap part however I do have experience with plumbing and things like in floor heat and that kinda stuff so there's a lot I could do myself, not tobmebtion my dad is a carpenter so interior finishing he could help with.... So other than land prices, what would i be looking at for cost? Obviously flatwork would be a big expense but I'm just unsure on remaining costs...would it be possible to keep this all under $60,000 not counting land? Any input and advice would be appreciated.

 

[72Anthony]

There have been a few threads about this. Sort of the dream situation for a young single guy!

Some other things to consider when building on acreage/rural land are the need for a septic tank and availability of electric service.

Renting isnt always a bad thing because it gives you flexibilty. As a renter it makes it much easier to move to accept a new job/opportunity (oilfield, overseas, military, etc).

Since you are still in school, keep researching and exploring the threads here. As you get closer to graduation, acces your employment prospects and see where things line up.

 

[Case IH]

I'm actually graduated, I graduated last spring, sorry if that wasn't clear, I typically work about 50hrs a week.

 

[sickjuice]

The reason its not done more is you not gonna get a loan on that.

You would be hard pressed to get a loan on bare land without a large down payment or assets to borrow against. Nevermind a loan to build a shop with living space.

 

[wrnchtwstr]

Another option is a travel trailer on some land. Live in it while you build your shop and maybe a nice size home. When your done you can always use the trailer for vacations or just sell it out right. Always someone needing a trailer for hunting or what ever.

 

[Case IH]

Yeah I was just reading about that, it did say most places will not be very likely to loan, but other places like a farm credit union may be more willing

 

[Riverside]

Another option is a travel trailer on some land. .

I was thinking the same thing. At age 19 it is hard to say what options may come your way in the next few years (work, love, travel, more school, etc.). Flexibility is good. If you become emotionally invested in a huge project, it may be hard for you to pursue something else that may be really good for you. On the other hand, if you look at the building as a business investment, that you are willing to part with, when the time comes, then it may be a good investment.

 

[JPD Motorsports]

I lived in one for 3yrs. garage below living up top. Couple options on the building part.. 1 get enough to finance it with a bathroom and a couple "offices" in it then use that extra for the buildout of living quarters this way your plumbing and extras would be included in the build.. Another is to get a chesp rv/camper live in it while shop is being built. Then move it into one side as you build out your living area. Once done pull it out and sell it or tuck it under a leanto.

 

[Beemer533]

Renting isn't always a total waste.. As mentioned, it allows for some flexibility, but it also saves you money in terms of taxes, maintenance and potentially even utilities...

If I was in your position, I would rent something cheap for a couple years and save as much as possible to put towards what you want.

Also, at 19 you most likely don't have the credit history that you would need to get a mortgage, much less a construction loan...

Just my 2 cents..

 

[OldBarn]

The reason its not done more is you not gonna get a loan on that.

You would be hard pressed to get a loan on bare land without a large down payment or assets to borrow against. Nevermind a loan to build a shop with living space.

Depends on where you are. I'm thinking about moving across the country so I can do something similar. Where I'm at now a few acres is a few hundred grand minimum. That comes with a big cash down.

I'm looking at moving to the east coast. For $995 down I can get owner financing on 26 acres on a private lake for $850/month. Yeah, in the middle of friggin' nowhere. I'll own it in 20 years.

If you're able to purchase land, they will be more likely to lend you money to build a "shop". My plan is to build the largest/cheapest metal shell I can with a loan, and then slowly finish off the inside spending a certain amount per month. I won't be getting any permits/permission for anything after the main shell goes up. For a basic shell with no floor I can get a 50x100 building for less than $30k.

but it also saves you money in terms of taxes, maintenance and potentially even utilities...

If your landlord has any sense, you're paying that, plus his mortgage, plus some profit.

Another possibility - find a big lot that already has an old/small house. This makes it easier to get a loan if the house is livable. After you build your shop you can move out of the house if you don't like it. Maybe rent it to somebody else for some extra income.

 

[Beemer533]

....
If your landlord has any sense, you're paying that, plus his mortgage, plus some profit. [emoji106]
...

Yes, I wasn't being clear; I meant a cheap place that would be less than a mortgage plus utilities..

Obviously a rental owner is out to make money, but if you can stand a cheap place for a while, it is going to be less money than a morgage, utilities, maintenance, etc.

This of course will vary depending on where you live and what you are trying to build/buy.

This post edited by the NSA