Buying my first primary living property in South Bay (SoCal)

2 Replies

Hello folks,

I have been looking at buying my first property and mostly have been looking at condos with a minimum of 2 beds so I can find a roommate to split the mortgage with. Been looking in the mid to high 300k range but am concerned that I will rely on the roommate's rent to be able to comfortably afford the mortgage a bit too much.

After reading some articles on BP, I have realized it would be much better to find a place that is much cheaper and needs some work so I can add value, yet still liveable for me. Anybody have any ideas as to what type of property I should look for and what platform I should use to look for the property?

Thanks.

@Jonathan Boroda

For a primary residence, I would purchase in a location that you are happy living in. It is a more personal purchase. As you stated, a good way to go is a house that needs updating, but is in livable condition so you can get conventional financing. Renting out one of the bedrooms is a great way to decrease your payment, but you won't be able to include that rental income for the purchase and DTI purpose.

@Jonathan Boroda

I completely agree with @Jerry Padilla .

It all depends on your goals and current financial situation. If you are able to afford the condo by yourself, then go for it (you could bank that extra cash away for another investment). However, if you are going to be dependent on that extra cash coming in to pay the mortgage, I would either wait or look into a cheaper duplex (listed on title at 2 or more units and you can count PART OF the income to qualify for a mortgage, like Jerry was saying).

One thing I would not do is use the 'roommate' to qualify for a loan... This could be a setup for disaster.  I have seen too many people have 'business partners' that they do this with and it eventually goes sour.

Hope this helps!