Can we live on $100,000/yr in Cali? (San Diego, San Francisco: rent, how much)

[FullBloodedWhiteMale]

Originally Posted by neutrino78x

People do it.

Ya, if they bought their home in 1973. However today, using the 1/3 of income for housing rule, $38K means about $13K/year or a little over $1000/month for a mortgage payment. At 4% that's about $210K mortgage. Now, assume you have a 20% down payment, that's a home worth about $262K. How many homes 4+2 homes can you find in California for $262K?

[aslowdodge]

Originally Posted by neutrino78x

These kinds of threads are so stupid. Do you guys know how much I make? My W-2 income, line 1 on the 1040, was about $38k for 2018. That's about $19/hr. And I live here in Silicon Valley. No, I do not live "comfortably". That's not my point. My point is that I can afford to live here. I pay 1/3 of my income, $900 -- the recommended amount -- on rent. And I can afford it.

So, yes, you can live here on 100,000/year. That's over 2.6 times my W-2 income.

Ummmm. You’re single who is fine living uncomfortably. The op has a wife and child to support. They are not going to have roommates like you either.

[aslowdodge]

Originally Posted by NoMoreSnowForMe

There is nowhere in Silicon Valley where you can have your own apartment for $900/month. You must have a roommate situation, and even then, $900/month is really cheap.

Glad you found a good roommate situation somewhere in Silicon Valley for under the market rate, but that's not what the OP was looking for.

But, really, I'd love to know where you found a rental for $900/month in Silicon Valley?

Somewhere he posted he gets only a small bedroom for that amount.

[aslowdodge]

Originally Posted by FullBloodedWhiteMale

Ya, if they bought their home in 1973. However today, using the 1/3 of income for housing rule, $38K means about $13K/year or a little over $1000/month for a mortgage payment. At 4% that's about $210K mortgage. Now, assume you have a 20% down payment, that's a home worth about $262K. How many homes 4+2 homes can you find in California for $262K?

It’s actually worse than that.
If you add in taxes and insurance it’s not 262k, but 230k

[2sleepy]

Originally Posted by FullBloodedWhiteMale

Ya, if they bought their home in 1973. However today, using the 1/3 of income for housing rule, $38K means about $13K/year or a little over $1000/month for a mortgage payment. At 4% that's about $210K mortgage. Now, assume you have a 20% down payment, that's a home worth about $262K. How many homes 4+2 homes can you find in California for $262K?

Mortgage eligibility is based on your gross pay, not your take home. The OP said they work from home so it's unlikely they are talking about getting a house in downtown San Francisco.

According to this with a 100k gross salary and no debt & 50k down they can afford a $488,000 home.

https://smartasset.com/mortgage/how-...ord#EtVmDthVcK

I don't know much about prices in Southern California, but I would guess that would make a number of areas there as well as in Northern California feasible.

[Ruth4Truth]

Originally Posted by neutrino78x

These kinds of threads are so stupid. Do you guys know how much I make? My W-2 income, line 1 on the 1040, was about $38k for 2018. That's about $19/hr. And I live here in Silicon Valley. No, I do not live "comfortably". That's not my point. My point is that I can afford to live here. I pay 1/3 of my income, $900 -- the recommended amount -- on rent. And I can afford it.

So, yes, you can live here on 100,000/year. That's over 2.6 times my W-2 income.

Did you get the part, where the OP said they'll have 2 kids?

Now, granted, I raised an eyebrow at the 4-br. house preference, in view of the fact that they'll have an infant and a toddler, only. But the OP is fine w/Sacramento, so--no biggie, right? I don't see how SV is relevant here. The OP seems to be pretty realistic in his expectations.

[DKM]

Originally Posted by letsurf

I own a software company and work at home so location doesn't really matter. My wife will be stay at home and we will be debt free by the time we move.

You'll be debt free but do you have equity? Then you are renting (of course). You might have to go with a 3/2. You can afford some areas that are cheaper because they are bad to commute from. Try Camarillo or Moorpark. Coastal climate, relatively affordable safe place to live. Want a smaller town? Fillmore is pretty nice and affordable. Its a little more remote but the weather is still great. It was 77 there in January when I took the family to a citrus nursery. If you really only need to be 2 hours from the beach instead of half an hour and can stand some more summer heat, you have a lot more options. The Saugus area. Temecula area. Some north county San Diego areas can work too.

If I were you I'd pack the bags and do it tomorrow.

[04kL4nD]

Originally Posted by neutrino78x

These kinds of threads are so stupid. Do you guys know how much I make? My W-2 income, line 1 on the 1040, was about $38k for 2018. That's about $19/hr. And I live here in Silicon Valley. No, I do not live "comfortably". That's not my point. My point is that I can afford to live here. I pay 1/3 of my income, $900 -- the recommended amount -- on rent. And I can afford it.

So, yes, you can live here on 100,000/year. That's over 2.6 times my W-2 income.

Geez. Are you still living at home with your parents? Thought you'd be done with school by now...

[cornsnicker3]

Originally Posted by letsurf

Wife and I are looking at places to move to. We have 1 toddler and one on the way. Some things that are important to us:

Within 30 minutes from a larger city
2 hours or less to the beach
4/2 home in a nice area
Warm weather year round

Is it possible to find this in Cali or would be be better off in a different state? I know the larger cities are very expensive but curious if you can get out a little way and find nice places for cheaper.

Sacramento is your best bet unless you don't consider it a larger city.

Caveats: 1. The beaches will likely be colder than you have in mind. Beaches in NorCal are colder and woodsier than a stereotypical Florida/SoCal beach.
2. Even with $100k income, a 4/2 home is still going to be at the higher end of your housing budget.
3. Winters do get below freezing, but it does not snow. It is mostly rain and does not have a traditional 4 seasons climate in Sacramento proper. If you want to see snow, you will have to drive at least 45 minutes into the foothills.

[aslowdodge]

Originally Posted by 2sleepy

Mortgage eligibility is based on your gross pay, not your take home. The OP said they work from home so it's unlikely they are talking about getting a house in downtown San Francisco.

According to this with a 100k gross salary and no debt & 50k down they can afford a $488,000 home.

https://smartasset.com/mortgage/how-...ord#EtVmDthVcK

I don't know much about prices in Southern California, but I would guess that would make a number of areas there as well as in Northern California feasible.

did that include taxes, insurance, and pmi?