23 and looking to buy a house

[Ultrarunner]

Originally Posted by Hemlock140

It seems that things never change. My wife and I were in the same situation at ages 23/22 in the 1970s, looking at homes to buy in Oakland, CA that we could afford but were in areas a bit too close to the sketchy parts. We simply waited and saved for another year or so until we had enough down payment for 10% down on a home in a nice, safe city about 20 miles southeast.

I was fresh out of college and wanted to buy a home in the worst way... it was something going back to childhood where the farming side of the family was all about owning.

My friends all had nice apartments and one inherited Granny's house.

I had saved money for a down payment and simply could not qualify for a loan... had 10 years of work history all from part time jobs.

So I started looking for the least expensive home listings and found one in East Oakland that was scheduled for a condemnation hearing... long story short is I bought it for cash for 1/3 of the MLS listing price... worst home in the worst neighborhood but is was all mine and free and clear.

Everyone thought I had lost it... even my step grandfather said I was young and had time to recover... sold my car to come up with enough money.

I still own that home today and it was the best move I have ever made... on my second renter now.

Every 12 to 18 months I moved into another fixer with each move a better neighborhood... my search for fixer property took me to Hayward, Castro Valley and Pleasant Hill...

[InchingWest]

Originally Posted by Wall.John123

Hi all,
I have 40K I'm looking to put down and I want to purchase the house for ~170-180 thousand depending on condition and other things.

I was in pretty much the same situation as you at pretty much the same age. I had 120k saved up with 40k I was willing to put down (always have backup, plus you'll want to keep money invested and growing).

But....I lived in central Maryland with my then-wife who was not willing to move. It's just as expensive and homes in the 180k range tend to be garbage AND in very rough neighborhoods. It sucks being just on that edge of affordability because a 220k home can be wonderful and in a great neighborhood, but a 180k home will most likely be run down and you'll have some unsavory neighbors. Consider 180k to be the "base" price for the area, and I assume that's roughly how it is throughout the North Jersey metro, where 180k is the "foot in the door" and anything beyond that is what you're paying for.

If I were you (and I was at one time) I'd hold out for a better house in a decent neighborhood. You can always sell a starter home if it's in a good area. Don't worry about the resale too too much before you buy, just make sure you're going to be able to tolerate living there first. Trust me dude, neighbors matter. Check the level of trash in the area, check how well people maintain their lawns. Those are the best indicators I can come up with (also try to avoid anywhere where too many vehicles have rims or where people blast music).

[Ultrarunner]

Buying the worst home in the neighborhood and making something of it will earn the respect of neighbors quicker than any other way I know.

The day after escrow closed I had a 30 yard dumpster delivered and needed a second one after that...

Within a week... all the trash was gone, broken windows repaired, had painted the curb side and trimmed the landscape which just about hid the house.

Something to be said about starting out with a fully paid for mortgage free home...

Not for everyone but for some it is the only way to bootstrap.

[SailCT]

Originally Posted by Wall.John123

Hi all,

I'm looking for some feedback and advice regarding my current situation. I'm 23 years old, currently living in North NJ and looking to purchase a starter home. Ideally, i would love to buy a home up here but with my budget i'll more than likely not be living in a good neighborhood. While I do not have any issues with that in terms of safety and other things I want my house to appreciate and the neighborhood be somewhat appealing in the near future (5-7 years).

I have 40K I'm looking to put down and I want to purchase the house for ~170-180 thousand depending on condition and other things.

What would you suggest the first thing I do is? I've been monitoring zillow, nj mls and other websites but the houses within that budget usually fall in an area i know will not get better in the near future. I'm very familiar with the urban areas in NJ, therefore i know the good/bad spots and do not lump a whole city like Irvington or East orange as crime-ridden.

Do you think I should consult with an agent? Also, do you have any recommendations with agents in the essex, hudson, union county area? I'm also highly interested in foreclosures but have found conflicting information. If anyone can elaborate or send links for that process in NJ, that would be great. Thank you!!

Get out West! It is great there and affordable!