The big problem comes with the 2% property tax/mello roos you are committing to. what you are really looking at is 1% mello roos on $500,000 = $5000/year or $400/month. That realistically bring the real cost of the home up by $50,000. so if you are successful in getting that $450,000 accepted, you’re really still paying for a $500,000 home.
I think the $350,000 mentioned earlier is really more of the true worth of these homes. 2007 is a critical year, the foreclosures are shooting up, the subprime lenders are dropping like flies, I know you are not looking for THE bottom, but waiting out 2007 will be very rewarding financially.
