Hello BP Members! Question: I am looking to HouseHack in OC, California, and here are the stats: Purchase price of $250K(ish), FHA with 3.5 down (@$8,750.00 Cash to close.), @$1,850.00 Mo Pmt. Incl. $250.00 HOA. I would rent the 2nd room for around $700.00(?) and my portion of my mortgage would be around $1,150.00. I don't mind my portion of the mortgage, my thoughts are when I move out and this will be a 100% rental, I don't imagine I would get more than $1,300.00~$$1,400.00 total rent. I would be at a negative $440.00 monthly.
I don't think just to get my "Househack" it would be worth it, right? I would really appreciate all thoughts on this potential property.
Thank you very much in advance .
Well my first thought is... there's a 2 bed condo in OC that rents for under $1,400?? Seems low. Anyways. If you like the location and the condo and want to live in it then i say buy it. Eventually you could refi out of the MI.
Another option would be to find a 500k-600k SFR with 3 beds. You could rent out two of them @ $700/each and have no HOA. Your down payment would be more but I would think more of your monthly expenses would be less
Did you include other expenses associated with the property such as repairs & maintenance, capital expenditures, property management, vacancy, taxes, insurance etc. within your analysis?
Hi Jerome M. No, I think by the time I finished writing that post, I was thinking "Forget it". Not only is it in a gang area in Santa Ana (Hence, the $250K price), but once I left and it was a full rental, it's doubtful that it would drive more than $1,400.00 a month rent. So, from the get~go as a full rental, I'm $400.00 bucks in the red, monthly. Forget it.
Thanks for your input! :)
Hello Bill Larsen! Yes, that exact condo has tenants in it now at $1,350.00 a month, but I spoke to a few Police Officers today about that area of Santa Ana and they said, trust us, you don't want to live there. You have to pack your Sig Sauer .45 just to be safe.
No thanks. :)
Best to you! $$$
@Daniel F. Harb bummer. but better to learn that before you buy than after! What's next?
Exactly @Bill Larsen ! I've been in OC for many years and I pretty much know of some funky areas. Great question , what's next! I am looking to purchase, it seems, out of area, and whether if is SFH, or Multi~Unit, or both, is yet to be seen. I am also looking OOS.
Have a great Saturday, Bill, and talk soon! $$$