How to Own a Million Dollar Home for $2,500 a month

Question

I am leasing to own an 8,200sqft Luxurious home that appraised at 1.2mil. The owner has decided that he needs to open up credit and sell the home. However, I can’t finance even the reduced price of $715,000. I make $84,000 a year and have a credit score of 715. I can’t afford anything over $2,500 per month. I really want this home badly. I am hoping there are a couple of geniuses here that can offer some ways I may be able to get this home and keep it at $2,500 per month. Please help my dreams come true and prevent me from Loosing what I’ve paid in to this. Our initial agreement was owner financing but the agreement had a clause for the owner to sell if I could not obtain a mortgage. I do have $35,000 in savings I could use as well. Any advice and ideas would be more than appreciated.

George W. · Answer

This is gonna sound mean but your only making 84k/yr then why do you need to live in a 8200sq foot house? Use the 35k you have saved as a down payment on a duplex or something. Cut your living expenses as low as you can man.

Bob B. · Answer

Have you heard the saying "he's all hat and no cattle"?

People that live within their means or better yet "below" their means have a better chance to attain financial independence.

Matthew Paul · Answer

I work around these houses all the time , they are my bread and butter as a contractor . Repairs of $1000 a month are the norm . When its time to replace the heat pumps its 3 of them . New roof , there goes $38K . When its time to sell , you wait and wait and if lucky you break even . Those big homes have a limited buyer pool .

Anthony Vicino · Answer

Clearly the owner knew you wouldn't be able to get financing.

Sorry, but you're throwing hail maries. This is a "dream" home that, even if you could somehow magically afford it, will inevitably turn into a nightmare. Guaranteeed.

If you really want this house, the only realistic route to success is:

1) Move someplace cheaper

2) Save

3) Increase your income

4) Buy the house at full market value when you can actually afford it

Short of that, I suppose you could always win the lottery or just put it on a credit card.

Matthew Paul · Answer

Plain and simple , no way . The numbers dont work . Never will . Even with $500K down $2500 a month wont do it .

Jay Hinrichs · Answer

Its simply mind boggling how cheap you can buy some of these trophy houses..  Far far below replacement value .

this is a big money pit.. that kind of house will cost a ton to maintain and run and keep in good shape..

unless your going to run it as a boarding house thats an idea might work in that regard.. and i got to think about that one.

that could be a good HBU for some of these big white elephant houses you see in certain parts of the country.

And i knew another guy that was turning these into senior homes.. those that are still able to walk and get out in a fire.. hire a few nurses to be there 24 7.. thats an idea too.  who would not want to live in a mansion  :)

John Price · Answer

I was thinking if anyone could think of something it be you fine folks. Oh, Well thanks anyway.

Isaac S. · Answer

Discover gold on property!

get interest only loan for 2.5% percent

pretty sure both are impossible, I'm sensing a theme.

Good luck!

Michael King · Answer

Sounds like you have squatters rights now.

Either house hack, increase your income or move to an affordable situation. I hope your wife is not pressuring you to find a way to pay for it like mine does. Those taxes are going to crush you.

Do yourself a favor. Get an affordable property that will allow you to start investing in real estate (rentals, BRRRRs, flips, you name it). Then someone will be paying for you to build a far superior house.

Or wait for the crash that's about to happen.

Theresa Harris · Answer

Figure out how much you need per month to afford the home and work backwards. Is it a single family or is there a small cottage on the property?  If that latter, you could do short term rentals in the main house and live in the cottage while the big house is rented.  Even at a 30 year mortgage and 3% interest, you're gong to need over $3K per month just for the mortgage.  This doesn't include maintenance, taxes, repairs, etc.

How to Own a Million Dollar Home for $2,500 a month

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