ok so heres the situation. I currently live in the Bay Are Ca. I am 25 years old and my gf of 6 years is 24. We just came back 3 years ago and live in a detached home in my parents home and pay virtually nothing for rent (400 a month, rents for studios here are about 1200!!!).
Combined we pull in about 53k a year homed are going for 800k + for a decent home, nicer homes easily going for 1 mil. Our plan is to relocate to Seattle where it seems comparable to the Bay without the ridiculous housing prices
Our plan is to buy a house or condo by next Dec. we are looking more at a condo before making the commitment of a house as well as making it a rental after living in it for a while
We both have been at our current jobs for the past 2.5 years. We have 30k for a down payment. So my question is the following. What are our chances of getting a loan for a 250-300k house. And how would we go about getting a loan for a home that would be out of our current state (buying in Seattle WA).
The plan would be to get the house before actually physically moving out that way. I'm thinking doing this would be easier for us to get a loan as we would still be working here in the Bay, and thinking of maybe renting out 3-6 months before going up there and moving in ourselves. The thought is that in these 3-6 months the mortgage will pay for itself, if rent doesn't cover the mortgage we would cover the cost needed. Now with our current situation of paying almost no rent even if it were not rented we could still afford the mortgage and be able top save a little just to have some money in case of a rainy day. How would w ego about this and what are chances of being able to do so, ie getting the loan.
thanks for the post ...what do you need assistance with ?..Dave SKow
I guess what im trying to ask is.
How would I go about getting a loan and buying the house, as it would be in another state. Id be buying the property in Seattle and be here in the Bay Are (Ca).
Also what are my chances of getting a loan for a 300,000 property with combined yearly income of 53k and 30k down payment. Both of us have at least 760 credit score.
I would like to get it going while im here in CA as ill have a job that ive been at for a while to show the potential lender.
Just my $.02, but if I were to do it again, and I say this coming from my experience of living in the Bay Area for 3 years and moving to Seattle, I would look for a duplex outside of Seattle. Can live in half, rent the other half. If you rent both sides and lose one tenant, not out rental income 100%. You can also get condos outside of Seattle for half your budget, so if you rent it, the rental cash flow goes a lot further.
I can't talk to the loan part of your question, but I do have a client, friend, and trusted adviser that I could put you in touch with that could help you out in the mortgage arena. PM me if you are interested in talking with him.
I gotta hand it to ya, at your age, having a plan in place or knowing that you need to have a plan in place, and taking action on implementing it, puts you miles ahead of your generation. Stay focused, complete your profile here on Bigger Pockets, ask questions along the way, you'll do fine.
First off thanks for the kind words. Ive noticed not many people my age are into investing into their future but are more about buying up and eating up all the "hot trends" or going out.
I have actually looked into hat route and isnt out of my equation. My thinking is buying in a place already thriving (not saying no other places nearby arent). But having missed the chance to get a home at a good price here due to being to young. For example homes now going for 800k+ were selling for 500 about 5.5-600k not long ago. And 2000 my arent bought their current home for 210k, where homes in the neighborhood are going for about 700k!
To be specific I live in Sunnyvale where all the tech companies are and continue moving in (Goolge, apple, linkedin, yahoo just to name a few). Is my logic wrong? I really appreciate l he knowledge on this site.
Also ill go ahead and pm you see if I can get the contact for our buddy, may need it down the road.
Adrian - hi there ....how is it going ? did you relocate to WA ?
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!