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Old 03-25-2021, 04:19 PM
 
Location: az
5,659 posts, read 3,505,972 times
Reputation: 4547

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Quote:
Originally Posted by hikernut View Post
I'll point out that, by definition, home ownership is not a surprise-free existence! Expensive maintenance issue can come up at any time. Just yesterday I saw a backhoe digging in a neighbor's yard... looks like they may have foundation issues. Regular maintenance items like replacing HVAC or a roof runs thousands of dollars. People sometimes have to rip up their slabs to fix plumbing problems, dig up the sewer connection to have it replaced, etc... Any day a backhoe has to come to one's house is a bad day

Taking on a financial commitment that's not comfortable is never a good idea in my opinion. I didn't catch what part of the city the OP is looking in, but trying to buy a home here on $50k income seems like a stretch to me. Better off living with a roommate or two, investing what can be saved, and working on earning more $$.
And get your credit score up as high as possible.
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Old 03-25-2021, 05:58 PM
 
828 posts, read 485,249 times
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I just looked up my old Townhouse/condo at 2121 W Royal Palm Rd., 85021. It is about 300 yards from 19th and Northern. Not the best North Central hood, but not the worst, either...and of course the schools suck. Loft style, 702 sf 1 br, full bath in the loft, and half bath in the living room. These were built in 1980 as golf course condos, but due to the 1980 economy of 15% mortgages, they were made into the Links Apartments. It was a popular singles apartment complex, with the golf course premium making it a step above normal. There were no neighbors above or below. In 2006, they were converted into condos, starting at 99K. My unit was purchased newly remodeled for 119,000. Rents in the 695-750 range for my sized unit. The golf course went bust, and would never see play again. someone paid 1.2 million for the 60 acres that was the course. The same unit next to me sold for 150K in early 2008. I came in late 2009, and paid 22,000. I lived in it over a year, before turning it into a rental. 569 per month. They had been there two years, and I sold my other house and needed a place. The rent had been paid every month. I had a property manager. I said to myself, if they are taking care of it, they will stay. They werent, and had really violated some of my per peeves...fluids leaking all over the parking space, storage of personal items on the patio. I told property manager 659 would be the new rent. She refused to even tell the tennants, and actually resigned as my property manager. I moved back in, they had done 2000 in damages and owed 1450 in damages after everything, that I never saw a dime of. I stayed five months, spruced it up..and sold to a Chinese businessman, with a really hot realtor from Chandler. 42,500. He held it two years and it sold somewhat slowly for 50,000. One like it just sold for 125K, while zillow says mine is worth 115k, which could easily be a better unit. So they still have not reached peak levels, but they are also no longer GC property, but there is now a light rail right there at the corner, or slightly south, and a nice Sprouts is even closer, with Albertsons across the street. Now, the rent...yep, its bad..1200 per month. Would have been a very easy 1500 per year for the property manager, who would have only left her chair to hog another comission.
But, first timers earning 50K and wanting to enter..this is what you could get, and you could swing it on under 40K, and it would be much less than rent. Compromises is a word that needs to be used more often in real estate.
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Old 03-25-2021, 08:46 PM
 
Location: az
5,659 posts, read 3,505,972 times
Reputation: 4547
Quote:
Originally Posted by DAXhound View Post
I just looked up my old Townhouse/condo at 2121 W Royal Palm Rd., 85021. It is about 300 yards from 19th and Northern. Not the best North Central hood, but not the worst, either...and of course the schools suck. Loft style, 702 sf 1 br, full bath in the loft, and half bath in the living room. These were built in 1980 as golf course condos, but due to the 1980 economy of 15% mortgages, they were made into the Links Apartments. It was a popular singles apartment complex, with the golf course premium making it a step above normal. There were no neighbors above or below. In 2006, they were converted into condos, starting at 99K. My unit was purchased newly remodeled for 119,000. Rents in the 695-750 range for my sized unit. The golf course went bust, and would never see play again. someone paid 1.2 million for the 60 acres that was the course. The same unit next to me sold for 150K in early 2008. I came in late 2009, and paid 22,000. I lived in it over a year, before turning it into a rental. 569 per month. They had been there two years, and I sold my other house and needed a place. The rent had been paid every month. I had a property manager. I said to myself, if they are taking care of it, they will stay. They werent, and had really violated some of my per peeves...fluids leaking all over the parking space, storage of personal items on the patio. I told property manager 659 would be the new rent. She refused to even tell the tennants, and actually resigned as my property manager. I moved back in, they had done 2000 in damages and owed 1450 in damages after everything, that I never saw a dime of. I stayed five months, spruced it up..and sold to a Chinese businessman, with a really hot realtor from Chandler. 42,500. He held it two years and it sold somewhat slowly for 50,000. One like it just sold for 125K, while zillow says mine is worth 115k, which could easily be a better unit. So they still have not reached peak levels, but they are also no longer GC property, but there is now a light rail right there at the corner, or slightly south, and a nice Sprouts is even closer, with Albertsons across the street. Now, the rent...yep, its bad..1200 per month. Would have been a very easy 1500 per year for the property manager, who would have only left her chair to hog another comission.
But, first timers earning 50K and wanting to enter..this is what you could get, and you could swing it on under 40K, and it would be much less than rent. Compromises is a word that needs to be used more often in real estate.

That's it right there: Crime and crummy schools. My handyman works with a flipper who specializes in West Mesa. Pays cash for the 50-70 grand range homes. Then sinks 40 grand or so in renovations and sells them in the 130-150 grand range. He does this once maybe twice a month. My handyman is booked solid for the next three months.

O.k. the OP can't compete with flippers who pay cash but he might be able to get a home for 90,000- 120,000. It'll probably need work but as long as there's no structural damage it's workable. The closer to a light rail station the better.

Now.... the drawback of course is the crime. Schools might not be an issue for the time being but crime will be esp. if you plan to live in the house.

But areas of West Mesa are on the upswing. Something to consider esp. if the property is close to the light rail.

Phx and Tempe are of course preferred locations but they might be out of the OP price range... even the crummy neighborhoods.

Last edited by john3232; 03-25-2021 at 09:05 PM..
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Old 03-26-2021, 12:26 AM
 
Location: East Central Phoenix
7,015 posts, read 10,260,299 times
Reputation: 8362
Quote:
Originally Posted by hikernut View Post
I'll point out that, by definition, home ownership is not a surprise-free existence! Expensive maintenance issue can come up at any time. Just yesterday I saw a backhoe digging in a neighbor's yard... looks like they may have foundation issues. Regular maintenance items like replacing HVAC or a roof runs thousands of dollars. People sometimes have to rip up their slabs to fix plumbing problems, dig up the sewer connection to have it replaced, etc... Any day a backhoe has to come to one's house is a bad day
This is absolutely true. I paid off my mortgage a long time ago, which made some people envious because not only did I become the true owner, but I no longer had that cost burden. However, I traded that expense for the expense of owning an older home, which involves frequent upgrades & repairs ... and we all know that many repairs are sudden & can be enormously expensive. Along with this arises the issue of actually finding contractors who aren't incompetent.

Quote:
Originally Posted by hikernut View Post
Taking on a financial commitment that's not comfortable is never a good idea in my opinion. I didn't catch what part of the city the OP is looking in, but trying to buy a home here on $50k income seems like a stretch to me. Better off living with a roommate or two, investing what can be saved, and working on earning more $$.
Yes, the OP really needs to think this through. Renting long term will get you nowhere, but somebody making $50K per year is not going to have an easy time buying a home in Phoenix (or most large metros for that matter). Taking into consideration not only the mortgage payments, but the high possibility of only being able to afford a type of place that will require more money to fix up, and the likelihood of it being located in a less desirable area. The OP would probably be better of renting for now, but should seriously consider a career change, as well as a better investment strategy for the longer term.
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Old 03-26-2021, 07:03 AM
 
7,330 posts, read 8,738,116 times
Reputation: 6639
Quote:
Originally Posted by Valley Native View Post
This is absolutely true. I paid off my mortgage a long time ago, which made some people envious because not only did I become the true owner, but I no longer had that cost burden. However, I traded that expense for the expense of owning an older home, which involves frequent upgrades & repairs ... and we all know that many repairs are sudden & can be enormously expensive. Along with this arises the issue of actually finding contractors who aren't incompetent.



Yes, the OP really needs to think this through. Renting long term will get you nowhere, but somebody making $50K per year is not going to have an easy time buying a home in Phoenix (or most large metros for that matter). Taking into consideration not only the mortgage payments, but the high possibility of only being able to afford a type of place that will require more money to fix up, and the likelihood of it being located in a less desirable area. The OP would probably be better of renting for now, but should seriously consider a career change, as well as a better investment strategy for the longer term.
Op. V-N is keeping it real. Heed his advice (as well as the RE agent ^^ Sno)! A term that applies to your situation is called "house poor". Analogy: it's like buying a designer puppy for $2-$3K. That amount is JUST the beginning. Ask me how I know. lol

Last piece of advice which you will probably ignore (if you keep on looking at houses over the next several months, then you know that I am right). lol IMO, recently, other people have given you some solid advice on how to be house poor (fixer-uppers, etc). You know my POV. Spend your energies figuring out how to make more money. If you eventually take in the best ever "roommate" (your spouse), that certainly changes the dynamics. Anyways, your situation is obvious to me. Final advice: don't buy a house on $50K a year income in a pistol-hot RE market! I'll be even blunter. It's stupid and financially irresponsible.

All the best!

Last edited by MN-Born-n-Raised; 03-26-2021 at 07:28 AM..
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Old 03-26-2021, 07:13 AM
 
7,330 posts, read 8,738,116 times
Reputation: 6639
Quote:
Originally Posted by FirebirdCamaro1220 View Post
What's the point in continuing this thread? You and I have already been given the answer to the original post by those like MN-Born-And-Raised who already got theirs:
You mean "who already earned theirs". My wife and I were dealt less-than-ideal cards (reduced school lunches, government-assisted housing, alcoholic fathers, zero post-secondary siblings, etc). I was smart enough to take advice from mentors along the way. Yet others have it all figured out. I'm happy to report that our kids are malleable and often ask for advice (albeit less and less as they are still learning how to fly). In conclusion, some people simply are not malleable.
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Old 03-26-2021, 07:17 AM
 
3,591 posts, read 8,148,147 times
Reputation: 4566
Quote:
Originally Posted by DAXhound View Post
I just looked up my old Townhouse/condo at 2121 W Royal Palm Rd., 85021. It is about 300 yards from 19th and Northern. Not the best North Central hood, but not the worst, either...and of course the schools suck.
I'm well acquainted with that area. My first apartment when I moved to Phoenix was next door and I walked my dog through the golf course every night. Have family that have lived off of 15th Ave & Northern since the early 1980's. Every time I've moved back to Phoenix, generally have found a place to live within 10 minutes of that area. Actually like that part of town if you pick the right block.

With the rise of charter schools, you no longer are sweating bullets when picking a house anymore. Remember vividly shopping for my first house and one house on the south side of Bethany Home that was an exact duplicate of a house two blocks north of Bethany Home was $30,000 less because of the school district.

That intersection is in the Washington School District and they were so tired of the best and brightest students fleeing their district that they created their own answer to a charter school over on 39th Ave & Peoria. When we lived in the Washington district we sent our children to that school and were more than impressed with the education they received. Prepared them well for attending Basis as high school students.
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Old 03-26-2021, 10:44 AM
 
Location: az
5,659 posts, read 3,505,972 times
Reputation: 4547
Quote:
Originally Posted by MN-Born-n-Raised View Post
You mean "who already earned theirs". My wife and I were dealt less-than-ideal cards (reduced school lunches, government-assisted housing, alcoholic fathers, zero post-secondary siblings, etc). I was smart enough to take advice from mentors along the way. Yet others have it all figured out. I'm happy to report that our kids are malleable and often ask for advice (albeit less and less as they are still learning how to fly). In conclusion, some people simply are not malleable.

My brother and his wife inherited 2.5 million. Good for them. Sometime the cards fall your way: the SF house I bought was my family home. Father passed away, mother wanted to sell, siblings didn't want it so I bought it. $250k in 1996. Years before the madness. Just a house. Nothing special. Rented it for $1250 a month. However, I had gotten my life back on track, cleaned up my credit score, had a deposit and earning enough to get a loan.

Then bought 4 more properties in 2005. A year before the RE nightmare started. Didn't do my homework. By 2009 the homes bought in 2005 were all but worthless. Two choices: walk away and lose a lot of money or ride it out. Got a skype telephone number (was living abroad) and had property management notify me whenever there was a problem which meant they usually called in the middle of the night.

The USD had crashed against the Japanese Yen (was teaching ESl in Tokyo) and I started working nights and on Saturdays. Started sending home at least 4-5 grand a month to my BOA account in the States.

By 2010 I had paid off the SF home as well as two of the homes I bought in 2005...then I decided to double down and buy more. First thing I needed was a good RE agent. Someone whom I could trust. I found C/D and there was an older fellow, an RE agent who used to post regularly. I began to exchange emails with him and we met. He was my eyes/ears on the ground and helped me navigate the bloody waters where sharks were circling homes... now selling 25 cents on the dollar.

Picked up 3 more properties and by 2015 the worm had turned. Happy days were here again. Unloaded the SF home for an ungodly sum in 2019 and today my AZ properties are worth a pretty penny.

So, what's the moral of this rambling: at some point you have to take action. And if you don't know which way when you reach a fork in the road of life... ask for direction.

I married well. My wife is easy to get along with but other than that I've made every mistake possible: booze/drug abuse, missed employment opportunities, financial mistakes the list goes on.

It wasn't until I was 35 that I realized I needed to do something different. That life just wasn't going as planned.
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Old 03-26-2021, 11:43 AM
 
828 posts, read 485,249 times
Reputation: 888
Quote:
Originally Posted by john3232 View Post
That's it right there: Crime and crummy schools. My handyman works with a flipper who specializes in West Mesa. Pays cash for the 50-70 grand range homes. Then sinks 40 grand or so in renovations and sells them in the 130-150 grand range. He does this once maybe twice a month. My handyman is booked solid for the next three months.

O.k. the OP can't compete with flippers who pay cash but he might be able to get a home for 90,000- 120,000. It'll probably need work but as long as there's no structural damage it's workable. The closer to a light rail station the better.

Now.... the drawback of course is the crime. Schools might not be an issue for the time being but crime will be esp. if you plan to live in the house.

But areas of West Mesa are on the upswing. Something to consider esp. if the property is close to the light rail.

Phx and Tempe are of course preferred locations but they might be out of the OP price range... even the crummy neighborhoods.
Crime wasnt bad, at all. Someone asked a guy why he was carrying a gun in a holster at Sprouts, and he said stray dogs..which usually are not a problem in PHX but those were extreme times.
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Old 03-26-2021, 11:57 AM
 
Location: az
5,659 posts, read 3,505,972 times
Reputation: 4547
Quote:
Originally Posted by DAXhound View Post
Crime wasnt bad, at all. Someone asked a guy why he was carrying a gun in a holster at Sprouts, and he said stray dogs..which usually are not a problem in PHX but those were extreme times.
That makes a big difference.

I don't know the crime stats for West Mesa but the neighborhoods I've driven through look sketchy at best.
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