In response to Mike's inquiry in the thread "Is this one worth $25K?"
How'd I wind up on Haller Airpark? You'll be sorry you asked, Mike. It's a long story, but I'll try to keep it short. I was simply MEANT to live here. Fate! (But I don't believe in fate!)That's the only way I can explain everything that had to happen to put me here. The time was early 1999, before the housing boom and souring home values. We were only just back on our feet financially, after a long fight to lower our debts and increase our spendable income. The girls were grown and married, and the son was finally starting college on grants and loans (he wouldn't let us pay for it, but would still live at home). I had my PPL, but had given up flying for sailing and bought a small boat.
Day one: I'd been a visitor to Haller since the 80's, and it was often one of our stops on those Saturday afternoon drives, even though I'd given up flying (it was still in my blood). Building lots or homes for sale were very rare here. But one day, there was a "for sale" sign in front of this house and hangar, 1 acre, 3br, 2 bath, With 50'x50' hangar and 36'x18' inground pool, about mid field. I won't even buy chewing gum on impulse, but I was on the phone with the realtor before I got the van stopped. I don't know what possesed me, and I'm sure the wife thought I'd had a stroke. I was told an offer had just been made on the house, but it hadn't been delivered to the seller yet, who would be back in town on Monday. I asked what had been offered, and was told the other couple offered the full $140,000 asking price. I don't know why I asked, but I asked if there were any contingencies on the sale, and was told that the other couple had to sell their home before they could close. I advised that I might want to make an offer too, and left my name and number, with instructions to call me before the other offer was delivered. They agreed.
Day two: Reality check! It was insane! I was already making a mortgage payment on another house, and knew I probably couldn't sell it any faster than the other couple could sell theirs. I had no money saved, and no airplane. What was I thinking?
The wife amazed me. She said we should go for it. We'd never get another chance! Alright, let's do some research. Heck, I didn't have time for research! I started compiling numbers, trying to gain a financial edge for some kind of an offer. I didn't have a down payment, but I did have good equity in the first home. I still had my VA benefits that I could use to finance the new home without a down payment, and at a reasonable rate. I had my 401K, but loans on that were time consuming. My current house could rent for twice the mortgage payment, and I'd actually increase my spendable income slightly in the deal. My credit was good! I could do this! I'd have to match the offer, but I could close as soon as the VA mortgage was approved. My advantage was an earlier closing.
Day three: On Monday morning I called the realtor to set up a viewing and make an offer. HORRORS! An associate was already enroute to the seller with the other offer. The realtor didn't call me first, because they "..didn't think you were serious". I advised them that I was VERY serious, and that they had better advise the seller that there would likely be a better offer, and not to sign yet. They agreed, appoligized profusely, and set up an immediate viewing of the property. We were on site with another associate within the hour. It was more than we expected, so we went to the realtors office and made the formal offer for full price, contingent only on approval of the VA mortgage. We would close as soon as it could be arranged. Naturally, the seller accepted our offer.
But... that's not yet the end of the story!
About day fourteen or so: A VA appraisal uses slightly different guidelines than a normal appraisal. They could not appraise the hangar as a hangar, and only appraised the house. $125,000 was the most they could guarantee for the whole property (based on the house value alone). Having no down payment, we were forced to revise our offer downward to $125K and immediate close. I was sure it would be rejected and we would lose the house.
The seller accepted! She wanted out NOW, her plans were already too delayed, and she feared the other offer would drag on for too long and could fall through. She was willing to accept the $15K loss for an early close.
We went to closing on about day 27, and started moving in that afternoon!
I bought my first plane within the year!
Heaven!
Postscript: I just realized. I paid only $14,500 for my 150K. So, I bought the house and hangar, and my airplane, for $500 less than the original $140,000 offer. I basically got the hangar (and it's equity) for free! The rental property (good tenants) pays for itself and part of this one. I was forced to retire 5 years earlier than planned, and could never afford to buy this property now. If it hadn't happened then, it never would have. We live here for about the same cost as we would pay if we still lived in the old house. The wife was right! Sometimes you have to take a chance.
