Can I buy a apartment on $90k income? (Oakland: short sales, foreclosure)

[tiemyshoe]

I'm trying to find a decent place to live in SOMA, but the prices are ridiculous! Based on a mortgage calculator, I can afford to buy a $300K apartment which will only cost me $1200/month (plus HOA, insurance) in the end, I'd pay just about the same to rent as if I bought!

Does it make sense for someone making $90K to own a $300K apartment in SOMA?

[jade408]

You aren't going to find anything to buy for $300k in SF (proper). You better expand your area. <$1200 rent isn't easy to find in SF (proper).

[Snort]

I don't know of anyone whose job is so secure these days that they can think about making a decades-long commitment to a mortgage.

[tiemyshoe]

Am i missing something? These are all $300K:

MLS# 81124368

MLS# 381822

MLS #385514

[mdwstrnkid]

Originally Posted by tiemyshoe

Am i missing something? These are all $300K:

MLS# 81124368

MLS# 381822

MLS# 385514

Did you see the HOA on the first unit? $722. The second one has an HOA fee of $425 and the 3rd one is $445. The HOA fee increases your monthly costs substantially.

[mayorhaggar]

In most parts of the US it's cheaper to buy a housing unit than to rent that same unit. Not in SF. Maybe look at condos in Oakland, ask jade408, she's discussed some in downtown Oakland that were like $150,000.

[jade408]

Originally Posted by mdwstrnkid

Did you see the HOA on the first unit? $722. The second one has an HOA fee of $425 and the 3rd one is $445. The HOA fee increases your monthly costs substantially.

Your real monthly outlay will be more like $2300-2500. Also one of your samples was a T-I-C (tenancy in common). It is very difficult to get a loan for that -- or more like impossible. Another one (2225 23rd)was in a non FHA approved building. So it is likely it would be hard to finance. And there were 3 loans and a lien on it. It will take four years to get the title if the short sale was even approved. That one isn't going anywhere unless maybe you have an all cash buyer.

201 Harrison is a studio -- hard to sell later.

Be wary of anything under $300k in SF. There is likely to be a serious issue. Crappy neighborhood, crappy HOA, thin walls...something that will cause you problems pre or post purchase.

[llowllevellowll]

Originally Posted by tiemyshoe

Am i missing something? These are all $300K:

[MLS# 81124368

MLS# 381822

MLS# 385514

Yeah, you are.

As the other poster said, the HOA on one of your bargains is $722/mo. That equates to nearly $90,000 just over a 10-year period, and that's if there are no increases.

In addition, read up on TIC loans. OP won't be eligible for SFH 30-year financing and will likely carry an interest rate in the 6-7% range, if he's approved at all, which will drastically affect his monthly payment abilities.

Furthermore, one of your listings was a short sale and the price listed has no bearing on reality - the lender may or may not accept an offer at that price. It should be noted that nearly 70% of short sales fail to close escrow, in part, for that same reason.

[UrbanDecay]

Originally Posted by tiemyshoe

I'm trying to find a decent place to live in SOMA, but the prices are ridiculous! Based on a mortgage calculator, I can afford to buy a $300K apartment which will only cost me $1200/month (plus HOA, insurance) in the end, I'd pay just about the same to rent as if I bought!

Does it make sense for someone making $90K to own a $300K apartment in SOMA?

Why don't you consult a financial advisor?

[gnomatic]

There are also down payment, closing cost, and property tax to consider.

And with the condos, those are in two of the bigger buildings in SOMA. They are studios, and there is a high percentage of foreclosure & non owner occupied units in those buildings. Selling would be a pain, and it's been a while, but I vaguely recall the mortgage companies not being fond of complexes that have high percentage of non-owner occupied units.