I’m renting a townhouse in Clairemont. In my complex there are 3 units that have NODs. One of the units was scheduled for foreclosure that got postponed at least 2 xs. One of the units is an investment property (NOD went to their house in PB). The one that is scheduled for foreclosure which keeps getting postponed is attempting a short sale at 350k.
There is one for sale that was listed in October for 399-419k, reduced now to 380k.
I’m going to be conservative in my calculations. Say I don’t want to tie up my cash in these difficult economic times and want to keep more cash on hand in case of emergency.
If I did an FHA loan w/the minimum 3% down on the 380k unit and put the 12k down, keeping in mind I will also need $$ for the realtor commission (18k?) closing costs (2-3k?). I’m looking at what, 30k or so?
I’m not sure what exactly the interest rates are for FHA and the rates change regularly. Let’s say I get lucky and find one for 5% and don’t pay points to lower the rate more. (Optimistic?)
I’m looking at 380 @5% x 30 yrs = 1,979.
The HOAs in this complex is 350
Property tax would be about 316
I’m looking at best case scenario of $2,645. That’s not counting PMI. (maybe someone can tell me how to figure that out. I’m unfamiliar w/how to do that)
So now I have to ask myself if I should buy the one for 380k, when there’s a SS for 350k and 2 other units w/NODs not listed, one of which is an investment property.
Also, I recently learned that they are checking for termites and the HOA fund is not doing too well.
I forgot the most important factor. My rent is $1,800 per month.
Now, I certainly can qualify for 380k. I can qualify for more than that. I like the complex I’m renting in. I like the area.
Should I buy? Should I buy a house I can afford elsewhere that has seen a greater decline b/c I should buy and live somewhere not necessarily where I would like to live just for the sake of buying and taking advantage of low rates and low prices? I already own free and clear some investment properties.
