Buying Forest Service Cabin - questions

[Platinum Pete]

In my terminal frustration in finding something that feels like a good value in the Portland housing market, I came across a cabin for sale up on Mt Hood. It's about an hour (with minimal traffic) from downtown PDX, on Forest Service land, totally affordable and cool, and I think I want it. Yet, there are reservations which essentially break down to economic and logistic concerns (and they interrelate)
How do I determine if this is a good value? How can I tell if the value will increase at a rate as good or better than something in town? I don't know what property has historically cost up there and in-market comparisons yield a humongo range of property types and variables that are unfamiliar to me as a typical urban first time home buyer.

What's different about buying an a-frame on Forest Service property vs. buying a home in the city? Probably a ton. I think the FS continues to own the land beneath the cabin, for one thing, but what does that mean to my purchase? Can I build an addition? Can I tear down and build bigger in 10 years? Do I have to fix potholes in the dirt road? How does the FS effect my financing and ability to sell down the line?

I am hot on it as a lifestyle choice, a great way to buy something while rates are still low but not get in over my head, and potentially a solid way to get equity and credit report benefits while buying something that I'll probably want in 5 years anyhow.

Any maggs with experience buying Forest Service property or real estate savy mags with suggestions on how to look at this smarter?

[P_McPoser]

Basically, not possible.

"But if you end up with a private home in National Forest, who cares about owning real estate? Lenders, that's who. They won't finance these cabins with home loans, so the buyer typically comes up with an all-cash offer, or the seller carries a loan for them."


"The Forest Service also imposes restrictions on the use of the facilities. Year-round residency and vacation rental is prohibited, as are remodels that change the home's footprint. The agency even requires that homeowners obtain permission to carry out improvements such as rebuilding a deck or repainting."

Read more. Google is your friend.
http://sfgate.com/cgi-bin/article.cg...carollloyd.DTL

[ptavv]

Also, "an hour from downtown PDX with minimal traffic" is totally bogus.

For starters, it takes a bit over an hour to drive from Welches to downtown PDX with no traffic (think, 3 AM). If you want to make that drive in the morning, oh boy, watch out, you'll be screwed. Ditto if you plan on returning from PDX to get up to Mt Hood between 3:30 and 6:30.

If you're going to be working in PDX, don't do it. If you're working in Sandy or something, go for it.

That said, if you're hell bent on commuting and don't like the PDX house prices, look into Hood River or one of the tiny little towns between Hood River and Gov't Camp.

[cj001f]

I've heard from several people that Forest Service leases in the Government Camp/Mt Hood area are going to be renegotiated/upforgrabs sometime in the coming few years - I've heard that both from persons looking to purchase property, and longterm leasors who are looking to landtrade for property in the coming few years. I couldn't find any specifics, but I'm sure it's somewhere. I've also heard the same things Mc_Poser has - that getting financed is a bitch.

[P_McPoser]

Ya'll are losing sight of the fact that year round residency is PROHIBITED.....by law.. Although, I'd bet a months pay they aren't out to get people who do it...

[Platinum Pete]

Ya'll are losing sight of the fact that year round residency is PROHIBITED.....by law.. Although, I'd bet a months pay they aren't out to get people who do it...

It wasn't going to be the only place I live, I was going to keep a room at a buddy's house in town, or maybe at my brothers home. Stay in PDX when I need to be there for work, but stay in the cabin as much time as possible.
However, sans traditional financing, I'm not so into this. My home purchasing objectives include credit strengthening, and the ability to borrow against something (equity); without trad financing I doubt I'd get those things and I sure don't have cash to buy the joint or trad financing in PDX would be no problem at all.

[BLOODSWEATSTEEL]

Sounds like a land-lease type deal. Yes, a bitch to find a mortgage co that will underwrite it. I do know a specific bank of America branch/loan officer that does these types of loans, though. There aren't many out there, and to make shit even more dificult land-leases are incompatible with VA & FHA loans. Straight conventional only.

[P_McPoser]

honestly your best bet is just to suck it up and buy what you can afford, rather you "love" it or not. You have to start somewhere yo, I'm sure there HAS to be some type of affordable homes in portland...