As Mush suggested - I would look at the total cost of ownership rather than just the initial cash outlay. Many of the fully contained, easily installed options will have a pretty impressive resale value. for example, I found many 80,000 btu shop heaters similar to what Ichabod linked above selling on Craigslist for $400 - $500. The same thing with PTAC's which I found selling used for $400 - $500. You can also take a chance and buy them used, but I wouldn't, I would just take the initial value drop and buy it new then sell it used.

You might also think about things that you can reuse in your new home. For example, if you plan to use direct vent gas fireplaces in your build, you can buy the units and install them in this home and then transfer them to you new home when it is time. You will be out the installation costs, but you will not need a pretty install and it should be fairly inexpensive.

Finally, I am a big fan of living near the property while it is being built, and I certainly think this provides you with a great opportunity to do so. However, the enforceability of a required residence clause is highly disputable. While the idea is to give preference to homeowners over investors and flippers, the bank can't force you to live in a property which is not safe. Nor can they dictate the reasonableness of efforts for you to make it safe, so you are the judge of what is a reasonable expense to make the property habitable, and if deemed unreasonable then you have the right to challenge the requirement. In short, if you want to get an attorney and spend a couple of thousand dollars fighting the bank, I think it highly likely that you will get the clause waived. Again, I love the idea of living on the property while the build is happening, but wouldn't do so if I thought my family might even be a little unsafe while doing it.

Thanks bry911! I agree. Although we're going to be roughing it for 5 months, I will really like being in close proximity to the build. Additionally, we're only paying interest during construction, so if we could avoid continuing to pay rent at our current apartment, we can take this time to save money for thing we need for the new house and for our pending mortgage payments. There are definitely challenges associated with this option, but it definitely has its perks as well. My thought is, even if we end up investing a couple of months worth of rent in the place, it's still saving us. Although we do have to keep the 30 mile increase in drive distance in mind.

The PTAC option paired with sealing off all rooms we won't be using, and sealing windows and doors may be the way to go. We really do not care about this place, so we could literally just spray foam everything except one entrance we can get in and out of! We won't be using the upstairs area either. I would say in the end we'll be using around 600 sqft of the house.

@Bri: "There must be owner occupancy within 60 days, and obviously since we haven't even begun digging"

Who's to know if you're living there? What defines occupancy?

@geoffrey_b that's a great question! If things still aren't working and we need to stay with a friend until it's livable, I'm pretty sure if our address is changed to there it's considered our "primary residence." However I don't want to test whether this $10,000 fine is enforced or not! But you're right, if it's your address and your mail is going there, I'm not really sure how far beyond you'd need to go. We have the yard mowed, installed a new mailbox, and will be starting to weatherproof and put up curtains/blinds this weekend.

Frankly as long as it looks habitable, and it's your primary address, I agree that they would be hard pressed to know if you actually live there. Personally, I wouldn't give up your apartment so quickly. Having lived with temporary heat during Hurricane Sandy, (and it wasn't all that cold) I can tell you it's no fun. Use the house during the day and sleep in your apartment.

@cpartist yeah, we both actually work all day, so we won't be there for 10 hours of the day during the week. I think I'm being a) stingy and trying to save on rent while we pay for our construction interest and start to buy things like flooring, and b) stubborn because I was looking as this as a challenge haha and maybe a little of c) controlling because I want to check on build progress on a daily basis. :)

Have to say I love your spirit and think you can do this - you're young!! After you've been there a while if the forecast is for something extreme you'll know if you can manage it and if not visit a friend for a few nights. My sons would do the exact same thing - get yourselves good winter sleeping bags. I can sleep in a cold room just fine - the hardest part for me would be the showering in a cold room so I'd make sure there's adequate heat in there.

@DLM2000 yes, luckily we have good friends about 10 minutes away! They've offered up a room so we do have that as an option. I don't want to put them out for 6 months, but at least if some crazy polar vortex comes through, we have a warmer place to stay. Ha I know I said I was going to live in sleeping bags and under my trusty electric blanket! Great point about a heater in the bathroom for showers--that will be a must I'm sure. We have plenty of space heaters for while we're home.

Trust me that cold toilet seat in the morning is just no fun. Also how laid back are you? If not very, I probably would forget saving the money as it might then start to impede on your marriage. Building is hard enough. Make sure your personalities can handle what will be additional stress.

Personally I know if it were methe extra expense of keeping the rental would be well worth it but only you know yours and DHs stress tolerance

those gas and electric "wood stoves" are lousy.

Install a wood stove, then move that same wood stove into the new build. They are great to have on hand, or a pellet stove.

Haha @cpartist getting more and more laid back as we go! I think our personalities can handle it, but I agree, it will be tough! Thank you for your input. @tibbrix we actually have a wood stove in the living room, but it would go out every day while we're gone for work for 10 hours. Kind of a pain to keep starting and stopping. Thanks for the suggestion! We will test it out and it will be a nice back up if it works.

Are pellet stoves the same? Maybe they burn longer?

The cheapest solution is to probably put heating wire on the pipes so they don't freeze, then use the wood stove when you're home.

Yeah--not a lot of wood (especially seasoned wood) at our disposal, nor time to cut it, but it's definitely an option. I think we're leaning toward the PTAC option. I know some advised against getting a used one, but someone that lives down the road from us is selling two for $250 each or $400 total. Might be worth a try at that price. I'm getting details on age and use, but the model has good reviews.

Can you design the system for the house and use it in the old house? I would favor a wall mounted boiler.

Make sure it has heating capability, not all do. They also often require a 20-30 amp capacity.

@JDS do you mean design the system for the new house and use it in the old house? No, we're doing geothermal in the new house and it's 700 ft away from the old house. @Springtime Builders are you referring to the PTAC? They do, they're heaters/ac units. Thanks for pointing that out!

Given that there's a small chance the furnace might work, I think you'd have grounds to say that you tried to live there and had to move out when the furnace failed. But, I get that you don't want to be facing a $10k fine, or legal fees to fight it.

And I don't think someone nearing retirement years, who has built up a nest egg and gotten used to certain comforts can say what is worth spending money on to a 20-something with limited savings, student loans, and bodies that can still handle a little adventure. :)

So, good luck, and keep us posted on your progress!

Haha thanks for the optimism, @amberm145! We have lived in 500-700 sqft apartments for the last 6 years and are just starting out. Just think how grateful we'll be of our new house when it's finished if we go through this. :'D

Thanks and will do! Like I said details, progress, photos and all of our woes are on my blog: loeschhomestead.wordpress.com. It might give you a chuckle... or a look of horror. :)

I lived in this while I built the barn:

Then graduated to the barn:

We're in our 60's, and used to a lifetime of indoor plumbing and heat. Even though we are relatively mild SC, it has been in the single digits a half dozen times, including one night that got down to 3 F. Sometimes you do what you have to do, and if you are flexible and have a good sense of humor, it's an adventure rather than a hassle.

@mushcreek that's awesome! Many have suggested we just throw up our hands and get an RV--we have considered it! Brr I hope you had a good heat source in the barn when it got that chilly!!

You mention 5 months in one of your posts. First, I am astonished if 5 months is your timeline to build, it seems optimistic.

Second, I am also surprised that 5 months is an acceptable occupancy, typically they require 1 year as a primary residence for the Homepath foreclosures. I just don't want you to go through all this and end up in trouble anyway.

Finally, you can save money living in the old house without making it an absolute miserable experience. Remember you still have a significant other, and a few creature comforts will be a lot cheaper than a divorce attorney. Building a house is stressful enough without making yourself miserable to do it. I am not saying you should keep renting, but spending a couple of thousand dollars to make the house comfortable may be money well spent. Especially if you keep an eye on resale.

@bry911 well, it's actually 6-7 months to build, but we're still in our apartment right now. It might be closer to 6 months for us in the current house. As long as they dig before the ground freezes (should be digging next month so it won't be a problem), I'm hoping they'll have it sheltered enough when the winter months come a long that they'll be able to continue and be out of the weather. I'm fully aware that their "6-month" timeline may very well be 8. :) However the bank will be checking up on them with every draw and making sure they're hitting their milestones, so hopefully that keeps things somewhat on track.

Occupancy is only required until we can move into the new house. The property has to be our primary address, and it will as we transition into the new house. Thanks for the concern, though! The bank is actually requiring that the home be torn down within 60 days of the new house being completed, so we won't be able to stay in it for longer than that.

Thanks for the advice! We're not allowed to say the "d-word" through all of this haha

bry911, I think you're confused about the temporary nature of this home. They aren't moving out or selling it when the new house is done. They will be living in a new structure on the same property. And then the old building will be torn down. There's no resale to consider.

Pellet stoves are great because they use an auger system to keep them burning all day. (if the electricity goes out, you need battery backup) The pellet stove could be a good back up for the new home. The portable infrared heaters only save money because you can shut down heat in rooms and just just the heater to take the chill off. They are not designed to be the major heat source.

You may want ot get the propane furnace checked out. If it works, get the propane hooked up. In any event, you will want to close off all rooms you can - even if it means setting up your bedroom in the living room.

I would close off all rooms not used, and then some. However, do not seal tight any exits with expandable foam -- fire safty reasons. I lived in ND and we sealed off all rooms not used. Used foam tape insulation to tighten bedroom door seals and tucked draft-dodgers under the doors. Those rooms would drop to the low 40s.

For the 20 x 24 living room addition that connected to the kitchen/dining area, we plugged the 3 x 8' former picture window passthrough with a cloth covered styrofoam sheet and covered the 6X7' passage to the room with heavy quilts hung on an expandable shower curtain rod. It was an all electric house, and heat bills ran about $375.00 a month each winter. That winter was colder than normal and we saved close to $250.00 a month in heating bills over the previous winter. Neighbor was complaining of $400.00 monthly bills.

We set up the dining area as our winter living room and ate at the counter bar. We kept one bedroom and a bath open along with kitchen/dining room. We used a laser heat measure and found the closed off living room would drop down to 35 degrees in the dead of winter (-20 to -30). We kept the heat at 62 degrees in the livable areas.

An electric mattress pad is more heat efficient than a electric blanket. We would turn it on high an hour before bedtime, and throttle it back to the lowest setting for the night. Use flannel sheets, wear fleece pajamas. We were toasty.

We also learned to always wear sweaters, sweat pants, a stocking hat, and fleece slippers.

You can save alot of money not paying rent and living there. You can also use the closed up rooms for storage rather than getting a storage unit.

Thanks @loonlakelaborcamp an electric mattress pad is a fantastic idea! I kind of forgot those existed! The quilt on a curtain rod is also a great idea for those rooms we still will need access to but don't need to heat. I will look into pellet stoves. All great tips.

Think of it as camping! And then, as another person has already mentioned, spend the super cold nights at your friends' house down the road. If it gets completely unbearable, could you just move in with family until springtime?

Anyway, I'm gleaning info from this thread as we are potentially about to do a similar thing in Mid Tn. So, not as cold, but we do have four kids! The property we just purchased has a 1940s farmhouse and five big barns. Adventure!

Glad I'm not the only one, @onlyblue! Are you building or will you be living in the farmhouse? We are definitely thinking of it as camping, and we will take up our friends' offer to stay with them when necessary. We could move in with family, but it's an hour drive (without traffic and winter conditions), so that would not be a fun commute. It's going to be a trip just the two of us--I can't imagine adding four kids into the mix! You are brave! It will be an adventure for you as well I'm sure.

Haha! Yep. It will be crazy.

We are planning to build. The farmhouse has been diagnosed as a "money pit" if we were to rehab it. :( But it's our inspiration.

When we camped in frigid weather we used a Buddy heater that ran on portable propane tanks.we hooked it up to the large grill tanks and it worked well. If you do this also get carbon monoxide detectors for safety, just in case.

As someone who started the foundation dig in April 2015 and still does not have a roof on or all the exterior walls enclosed, I think you might be a bit optimistic on your timeline....we are coming up on six months.....

Just looked at your blog

“Adopt the pace of nature: her secret is patience”

OMG that was my senior quote in my high school annual! I must say although I did not chose it myself....patience has come in mighty handy during the building process.

Laid back is good!

@ amberm145 There's no resale to consider. -

There is resale of the items that are purchased to make the temporary house habitable. In other words, the heater you use, any cabinetry or appliances that you must purchase that can't be used in your other home can be resold.

@ Bri - Are you sure that only the address needs to be your primary residence? First Look type foreclosure language typically looks like this - "I will occupy, establish and use the above-referenced property as my primary residence within 60 days after the Closing and will continue to occupy the property as my primary residence for at least one year after the date of occupancy..." - The "above-referenced property" means the house and not simply the address. In this case building a new house on the same property and tearing down the old property will typically mean you are in default of the clause. To be fair I think it will take nearly a year anyway, so I am not sure you are in any real trouble there, but you might consider checking with your attorney if you have a similar clause.

An extra thought -- buy a few (dozen??) mouse traps. I know what old leaky buildings are like!

You'll have it easy. I started my project 4 years ago, and am just finishing up. I work alone, and I'm slow and old!

@loonlakelaborcamp I just lol'd. That was the first thing my Dad did when he came down to help, and we've already caught two friends. I'm sure there are many more hiding out! Sigh... I just stood in the living room staring at the cartoon-esque mouse hole(s) in the wall between the living and dining room. Maybe if I watch Rescuers Down Under over and over, I can convince myself that it's just Bernard and Bianca living in my house! @mushcreek wow! Good for you! We're only doing some of the work ourselves and it's still a lot of work! :)

Mushcreek-you are the inspiration that keeps the rest of us going!
A few mice are nothing. The barn on this property had a dozen dead mice, two coons, three opossums, a 6' snake skin, and some things too far gone to identify. Then we had the living animals- a dog, a coon mom and babies, a groundhog, an owl, and who knows what else that left before we saw it! That part of the adventure is no fun, but it is worth it in the end.

Bri- I admire your stubborness. It makes me think you have what it takes to be a diyer! :-)

@neonweb2 haha we haven't been there enough to identify all of the creatures nearby, but have seen a couple of dead mice, a snake and lots of carpenter bees who have made our mudroom wall our home. Plenty more waiting to greet us, I'm sure!

I hope I have what it takes for big DIY projects! We have plenty of them on the docket including sliding barn doors, our tile floors, a plank wall, a vanity or two and floating kitchen shelves. Wish us luck!

Bri,. Don't know if it has been suggested but what about kerosene heaters?

No no no - no kerosene inside! We want them to survive and build their new house.

I think you have some good suggestions above regarding heat. Electrical heaters are very expensive. We had two that used dryer like outlets and they cost tons to use. We also went through many of the cheap electric heaters -- they only last so long before they stop functioning.

We live in Southern Ontario, Canada. We have been re-building/expanding our house for close to 4 years. We have lived through all sort of horrible, freezing conditions. We have four kids. I have a long winter coat that gets lots of use inside our home. Having a shower is the worst.

Don't forget that poly plastic can make a huge difference for pennies to make a wall more insulated. You can poly over tons, and block off a section of your home with poly as well.

A few winters ago, we did rent two propane heaters. They were not that great at spreading heat around the home, and they were expensive too. I do hope you find out your old furnace works. I would certainly get a quote to see what that would cost to fix. The difference in fees to rent another heat source, or pay for electrical energy to heat might be more than the furnace repair.

Good luck. I hope your winter is not an extreme one.

Carol

The 6-7 months to build will turn into 16-17 months in no time.

Bri, sorry to say this but whatever time schedule they gave you, double it and if you're in sooner, consider yourself lucky. Otherwise you'll stress yourself out.

Ah to be young and have that can do spirit still. :) Best of luck.

It always takes longer than expected. Just my background from being in the construction industry even if I only manage the IT systems for construction. I would also say that anything that challenges you makes you stronger in the end. I have a friend that lived in UK just after WWII and only had heat when the first one up in the morning started the coal fire under the hot water tank. That coal fire was the only heat and the only hot water in the house. Brrrrrrrr. Gives you a big dose of reality.

As a result of spending over a decade getting a divorce from a crazy person and being a single parent, I've had to live in a construction project without heat or AC for over a decade. Thanks to our corrupt legal system where her attorney could use any work I did on my house and say that I was destroying the "community" property and use that excuse to generate fees. Shocking waste as documented in the book "Without Honor" and the current documentary "Divorce Corp".

Just think of the struggle as an adventure and the result will be worth it, perhaps only when you look back on it LATER.

My wife and I were reminiscing last night about the first few months of our project, before the barn was built, so no indoor plumbing. I used a camping solar shower, which is basically a black bag you fill with water and lay in the sun to heat up. I made a shower stall out of PVC pipe and cheap shower curtains, and set it in a plastic mortar trough to catch the water. I made a sawdust toilet, dubbed 'Ol Splinter'. By comparison, living in the basement is the epitome of luxury!