I'd second what Zeehag said. You're generally much better off spending the extra money and getting a boat that is in decent shape to begin with, since the cost of refurbishing a boat can often far exceed the cost of buying that boat in good shape to begin with.
Also, define hold four people comfortably? Do you want day sail with four people aboard... that's probably doable for your budget. Do you want to weekend with four people aboard?? A bit tougher, but not impossible if you're very lucky. Do you want to cruise long-term with four people aboard? Not for $5000...
To cruise long-term with four people aboard, you're probably looking at a 35-40' boat at a minimum... and probably looking at $40,000 at a minimum to buy one in decent shape. To give you an idea of what the reality is... my friend often says about his C&C 38:
"It sails six, feeds four and sleeps two." That's not too far from the truth, since on a passage, unless your hotbunking, the v-berth is often unusable, and that means the boat would have to have two aft cabins to suit two couples.... if it is four individuals....it requires even more space.
BTW, welcome to Sailnet. I'd highly recommend you read this
POST to help you get the most out of sailnet.
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Sailingdog
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Telstar 28
New England
You know what the first rule of sailing is? ...Love. You can learn all the math in the 'verse, but you take
a boat to the sea you don't love, she'll shake you off just as sure as the turning of the worlds. Love keeps
her going when she oughta fall down, tells you she's hurting 'fore she keens. Makes her a home.
—Cpt. Mal Reynolds, Serenity (edited)
If you're new to the Sailnet Forums... please read this
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Still—DON'T READ THAT POST AGAIN.