Help buying a condo in Long Beach area. (Anaheim, Walnut: real estate market, apartment)

[Hypersion]

Sorry for the typo in the title; can I edit titles?

I'm starting grad school at long beach state in the fall and plan on buying a 2b condo in the area for ~$200K. Are the locations of these two units safe areas.

Thanks,

Walnut ave between 7th and 6th zip 90802

Ceder between 3rd and 4rd zip 90802

Accord to the crime stats zip 90802 seam fairly high but I'm guessing some areas are worse than others.

My agent also found a 4b2b for $199,000 on 23rd between Santa Fe and Webster zip 90810. But i'm guessing that a 4b for $199,000 is a No No unless you are a drug dealer.

[Paula Lynn]

I personally think all 3 are not great. Keep looking.

[NaplesRes]

Originally Posted by Hypersion

Sorry for the typo in the title; can I edit titles?

I'm starting grad school at long beach state in the fall and plan on buying a 2b condo in the area for ~$200K. Are the locations of these two units safe areas.

Thanks,

Walnut ave between 7th and 6th zip 90802

Ceder between 3rd and 4rd zip 90802

Accord to the crime stats zip 90802 seam fairly high but I'm guessing some areas are worse than others.

My agent also found a 4b2b for $199,000 on 23rd between Santa Fe and Webster zip 90810. But i'm guessing that a 4b for $199,000 is a No No unless you are a drug dealer.

200k for a 2 br condo will be tough in a good areas. if buying downtown (90802), I'd try to stay south of 5th. That one on Cedar might be ok.

You might look in belmont heights for a condo conversion. 200k would be much more doable if you could settle for 1 BR.

[Hypersion]

Thanks for the advice.

I'm also looking at one on Obispo between PCH and anaheim 90804.
According to the statistics that zip code has a crime rate below the state average.

[Hypersion]

Originally Posted by NaplesRes

200k for a 2 br condo will be tough in a good areas. if buying downtown (90802), I'd try to stay south of 5th. That one on Cedar might be ok.

You might look in belmont heights for a condo conversion. 200k would be much more doable if you could settle for 1 BR.

Unfortunately I've talked to a number of loan office and nobody is financing conversions right now.

I couldn't afford a 1b at 200K since part of my budget planning is having a roommate in the 2b at least some of the time.

[JohnG72]

Why so important to buy? You are looking at pretty sketchy areas.

You are aware that PCH and Anaheim St have pretty strong criminal elements?

Anything along those streets from Redondo to the 710 tends to be pretty horrible.

I think you should rent.

Ask yourself what you are hoping to accomplish by buying a condo right now. Please post your answers here. I'm very curious about the thought process that people who are in a rush to buy right now have.

[Hypersion]

Originally Posted by JohnG72

Why so important to buy? You are looking at pretty sketchy areas.

You are aware that PCH and Anaheim St have pretty strong criminal elements?

Anything along those streets from Redondo to the 710 tends to be pretty horrible.

I think you should rent.

Ask yourself what you are hoping to accomplish by buying a condo right now. Please post your answers here. I'm very curious about the thought process that people who are in a rush to buy right now have.

Buying right now seams cheaper than renting over the long run specially with a roommate. But if the areas are as bad as you say than maybe I should just look around at renting.

[JohnG72]

Originally Posted by Hypersion

Buying right now seams cheaper than renting over the long run specially with a roommate. But if the areas are as bad as you say than maybe I should just look around at renting.

Even on a $200K place, its not cheaper than renting. I have no idea how you came up with that.

If you put 20% down plus closing...and I'm guessing you don't have that so good luck qualifying

Leaves you with a mortgage at 7% of around $1100 a month. Factor in HOA of at least $175/mo, probably more like $300. Property tax of $200 a month or so and insurance at $50 a month you are now at $1650 a month. That doesn't count any assesments that you may have in the future.

If you need a roomate to cover the payment of $1650 a month, your tax writeoffs from the interest paid and the property taxes paid are likely to be minimal at best.

Pretty sure you can get a two bedroom apartment in a decent area of Long Beach and split the rent with someone for less than that.

Even worse is that its likely to be a decade or more before the value of that condo is higher than you paid for it. Its not like the real estate market is just going to magically start regaining value. Theres still a LOT of pain left to be had.

[Hypersion]

7% mortgage? I have a prequal letter at 5.25%-5.75% no points.

I calculated my payments at around $1400 at the higher end.
According to the rent vs buy calc I'm breaking even in 3 years on my investment assuming paying rent on a 2b2b elsewhere is $1200 a month and home appreciates at inflation. (3%)

Your $1,358.46 monthly payment consists of:
Principal and interest $908.46
Taxes $166.67
Insurance $83.33
Association dues & maintenance $200.00

[JohnG72]

Originally Posted by Hypersion

I'm breaking even in 3 years on my investment assuming........home appreciates at inflation. (3%)

This is a beyond ridiculous assumption.

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