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Old 04-05-2009, 12:10 AM
Location: NYC
20 posts, read 82,620 times
Reputation: 24


I got a job offer in Burbank with a take home pay of around $7,000 a month after taxes. I am single and in my early 20s but I would like to rent a small 3 bedroom house so my parents and sister can move in. I found some nice ones on craigslist in the $3,000 area but I'm not sure if I can spend this much.

I'm from the NYC area and unfamiliar with the rental laws there. Here you have to make 40x the monthly rent. Is it similar in Los Angeles?

Old 04-05-2009, 12:19 AM
11,715 posts, read 30,143,903 times
Reputation: 7296
$7000/mo net is probably about $10000-11000/mo gross. Your gross pay is what people will look at. In that case, you'd be spending less than 1/3 of your monthly gross for housing which is reasonable. Apartments usually have a 3x rule but with houses, it's whatever the owner is comfortable with. There's no law requiring any specific income for a given rent.
Old 04-05-2009, 12:21 AM
830 posts, read 2,186,838 times
Reputation: 373
It's up to you. Are you willing to spend $40,000 a year for a place to sleep?

If you're taking home $7,000 a month after tax, then you're probably grossing $130,000-$140,000 annually, right?

Mathematically you can afford it. The question is, are you comfortable with the fact that between taxes and rent you'll be spending $80,000-$90,000 per year, leaving you with just $50,000 or so to pay for everything else you need and want, including savings, which at your income level should be over 20% of your gross income.
Old 04-05-2009, 12:35 AM
Location: NYC
20 posts, read 82,620 times
Reputation: 24
Thank you. Yearly salary before taxes is $130,000. My parents both got laid off and are selling our house in NJ so I'm going to let them and my younger sister live with me until they can get jobs in LA. I'll be paying less on rent after they do.
Old 04-05-2009, 12:41 AM
830 posts, read 2,186,838 times
Reputation: 373
Given your situation, it seems to me the more prudent thing to do would be to find a much cheaper place to live. Paying $3,000 a month for rent is like buying a $500,000 house.
Old 04-05-2009, 03:21 PM
Location: Bella Vista, Ark
57,487 posts, read 58,881,572 times
Reputation: 26868

Yes, you certainly can make that type of rent payments, but the bigger question? Do you really want to tie up that much in rent and how secure is your job..?? that is a lot of money for a young woman in her early 20s to be making. It sounds like you are in the entertainment field, am I right??

Old 04-05-2009, 03:38 PM
Location: Burbank
1,204 posts, read 3,419,740 times
Reputation: 414
It would be very wise for you to rent a 1 bedroom for awhile, and make sure everything is moving smoothly. You would be just be starting a job, which basically means, no security. Don't overextend yourself like so many other people that are here. Watch your money, and once the job looks long-term and set in stone, then rent that nice big place for you and your family.

Good luck.
Old 04-05-2009, 03:51 PM
413 posts, read 1,046,835 times
Reputation: 289
Is your family going to help with the 3000 a month? If not I would rethink it. People are losing jobs faster than anything. I know people who thought they were secure and are now one step away from being homeless. If your family is going to help with the rent that is one thing. Remember the rule last hired first fired. And if you are working in the entertainment business that is an even shakier career. And if you are paying for a car and insurance and everything else that 7000 a month will be going fast.
Old 04-05-2009, 05:57 PM
Location: NYC
20 posts, read 82,620 times
Reputation: 24
The job is in the entertainment industry. I got it through family connections so it's pretty secure. My parents are both in finance and got laid off on Wall st. Do you think it would be pretty impossible for them to get jobs in LA? I have to let them live with me for a while because they need to sell our house in NJ and will have nowhere to live. I also have a 16 year old sister we would need a 3 bedroom place plus a yard because we have a dog. I already have a car that's paid off so I would just need to pay insurance.

When my parents do eventually find jobs I'll probably move out and get a 1 bedroom for myself and they can continue paying rent on the 3 bedroom house. Thanks for all the replies!
Old 04-06-2009, 10:20 AM
33 posts, read 108,716 times
Reputation: 26
first, congrats on getting a job and looking out for your family.
second, wall street types face a pretty small job market in LA. It really depends on what they did in NYC. There are i-banking shops, hedge funds, asset mgmt, private wealth and distress / PE funds here but not on the scale of NYC. Most focus on media, real estate and retail. Hope that helps
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