Home Buying in 22079>Question Details

Linen, Home Buyer in Onnet

Still too expensive!!!

Asked by Linen, Onnet Mon Oct 1, 2007

I am a single person with perfect credit.
Can not afford any thing in this area. Wondering a duples or some thing similar that can be rented and shared is my answer? What are my options

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8
Hi, Linen.... If you haven't already, I recommend that you talk to a reputable lender to see what you qualify for and can comfortably afford to pay each month. Once you have that, you need to decide how far you're willing to commute to get better housing prices. Perhaps a duplex is an option, but you have to be careful; let's say you get someone to rent it for a year and you then have no problem making the mortgage payment. If they don't renew and you have a month or two with no rent coming in until you find another tenant, will you be able to cover the mortgage by yourself and still eat?! If you would like to talk about some other options I'd be happy to share some thoughts. Thanks, and have a GREAT day! Paul
1 vote Thank Flag Link Mon Oct 1, 2007
Unless you can qualify on your own for the mortgage, buying a property with the intention of renting a portion to cover expenses will probably be difficult. Depending on your situation (income, assets, etc.), a lease-purchase or lease-option might be a viable alternative. Other options you can consider: looking in different areas (some parts of the Washington metro area are less expensive than others), buying a property that needs some work, looking out for property auctions.

I definitely recommend that you talk with an experienced real estate agent - you may be in a better position to buy than you think.
1 vote Thank Flag Link Mon Oct 1, 2007
I am in the same position you are in. I still rent because:
1. I don't want to live in a bad area
2. I don't want a 1.5 hour commute
3. I don't want to live in a 400sq/ft studio.

I will save my money for a nice deposit. I figure if I can save 10k a year, I will be able to buy a place in 2040...
0 votes Thank Flag Link Fri Feb 29, 2008
come on now...this is washington d.c. not texas lol. TH under $200,000 is pretty darn good for an ok neighborhood. there are fixer uppers, not so great areas, far out places with long commutes...we cannot get everything we want but homes have come down a lot and there is definitely a lot out in the market now versus 2 yrs ago. like i said before, you can get a decent place but not perfect. the point is...you still own and can deduct it on taxes and dont have to move due to increases in rent or crappy neighbors etc.
0 votes Thank Flag Link Fri Feb 29, 2008
what is too expensive for you? what areas are you looking at? and what type of home are you looking for? these all relate to it being too expensive or not.
0 votes Thank Flag Link Fri Feb 29, 2008
I guarantee that you could buy in Anacostia (zip 20020) --I just did and I just graduated from college and am not rich at all.
0 votes Thank Flag Link Thu Oct 11, 2007
As a lender, there are many options for buyers with terrific credit. The key is finding the right loan program for you and the house to go along with it. Please let me know what are you searching for, and I'll do all that I can to connect you with the right loan program and Realtor.
0 votes Thank Flag Link Wed Oct 3, 2007
Lenders are much tighter today than a few years ago. I did sell a 2-family property that had a long term tenant who had been in residence for several years. The lender did count his rental income in the income and debt ratios. If you buy a vacant duplex/2-family chances are the lender will determine qualification based upon only your income and not provide any allowance for rental income.

I am hesitant to recommend lease-options or lease-purchases, although I have done them, and in rare circumstances, even recommended it. Usually, a word of caution is in order. Most options do not materialize and the renter forfeits option monies.

Buying a 2-family, or taking in a roommate can be a good solution. Make sure that you budget for vacancy and have the ability to make the payment the months that you may not have rental income. You still must be able to qualify, and without making your rate go so high that it becomes a poor financial choice.

There are some motivated sellers out there, both in resale and new construction. If you are flexible on your housing choices, you can shop for the best deal and motivated sellers. If your goal is to buy a place and manage your finances well, focus clearly on that goal and be a bit more tolerant of funky wallpaper or older appliances. A mediocre property in a fantastic location is still a winner most of the time.

Find a good buyers agent, let that person know that you will be loyal to them and what you expect from them. If you do not already have a lender, you need to find out what you can really buy before spinning circles in the wrong direction. A buyers agent may help you find a lender. Or if you find a lender, he or she may lead you to a great buyers agent.

Best of Luck!
0 votes Thank Flag Link Mon Oct 1, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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