Hello my family of 2 adults and two babies live in a 2 bed apartment for $1250 a month. We need to find something cheaper but the places were finding are not in safe areas. How can we find cheaper rent with not much money down? We do want to settle down somewhere.. Is there any way to be paying $1000 a month for mortgage? Rent to own? Leasing? I'm that savvy in this area but I would love feedback. I saw some ads rent to own with no money down on bad credit with low monthly payments on Craigslist but it sounds to good to be true. Please any help or advice would help.
I understand in the Inland Empire rent is cheap.
Make more money
There is a house on Craigs 2+1 Hemet owner financing 69k.
One suggestion is to look for properties on the edge of the unsafe neighborhood. You will get lower rent for being in a poor school district but potentially can get on a quiet and safe street. Ask neighbors, check in with the police, spend time sitting on the street at different times of day to get a sense of the street. Save up money so you can move back to a nicer neighborhood when the kids start school.
If rent to own seems to good to be true, it probably is. It could be low money down but really high interest rate, which may be OK with you. You can always negotiate. But if you are having a hard time affording rent in a decent neighborhood, you may not be ready to be a home owner.
Do you qualify for any affordable housing assistance, such as reduce utilities, or a Habitat for Humanity house?
Share a big house with another family or rent a big house and sublet the extra rooms.
In the first years of my marriage, we rented a house in Mira Mesa with four bedrooms for 2000 a month, and then with landlord permission rented out the three spared rooms at 600 a month each, so rent was 200 for two adults. Then the savings went into the down payment for our first property. The living situation was less private but the reward was worth it.
If you own a house in California and rent out rooms to others, be aware it could be quite difficult to get a renter out of your own home if circumstances changed. If they decide not to leave, it would require full eviction procedure and could take many months. Being a family with 2 babies, it would be too risky in my opinion.
If you take the step to purchase your own home, be aware of all of the costs of home ownership. After the purchase and all costs associated with it, you have ongoing costs of mortgage (principal and interest), property taxes, insurance, capital expenses (roof, furnace, etc), and operating expenses (maintenance & repair, utilities, landscaping services, housekeeping services, etc.). Also, be sure you have an emergency fund equal to 6 - 10 months income.
Read up on how to buy a home. Read up on how to maintain a home. Consider an exit strategy if you buy a property and it doesn't work out for you. Think about your short term and long term goals. Where do you want to live 5 years from now, 10 years from now, 20 years from now? What housing amenities and features do you need vs want? Distance to work, schools, medical care, shopping, place of worship, recreational opportunities, transportation, etc.? What support systems do you have in place? How close will you be to family and friends? What kind of lifestyle are you prepared to establish and maintain?
Lastly, be very careful about getting leads from Craigslist. There is a lot of fraud that occurs via Craigslist. If you have never bought or sold a house before, find yourself a good realtor.
Marcia Maynard, Fischer Properties | Podcast Guest on Show #83
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