purchasing a duplex

Newguy07 · 11-10-2007, 09:31 AM

I been talking to a mortgage broker about a duplex that I have in mind for a purchase. The purchase price is 130k and I make about 25k a year right now with salary increase every 6 months.

at my current salary i know i couldnt afford this place but since one unit make $600 a month the mortgage broker says she could tack that on to my income

Is this a smart practice? I know I have to account for vacanices that is why I am not going to put all my money for a down payment and have left over.

**MianoSM** · 11-10-2007, 09:59 AM

No thats not smart.

Not only do you have to plan on vacancies, but also evictions, landlord issues (preventative maintenance, upkeep, corrective maintenance).

If things go well, and are all ideal - I'm sure you'd be in the money. However, if anything goes wrong your up the creek.

Newguy07 · 11-10-2007, 10:08 AM

Quote:

Originally Posted by MianoSM

No thats not smart.

Not only do you have to plan on vacancies, but also evictions, landlord issues (preventative maintenance, upkeep, corrective maintenance).

If things go well, and are all ideal - I'm sure you'd be in the money. However, if anything goes wrong your up the creek.

I know. That is what I was thinking. I am going to see what the governemtn has in store for down payment. I am thinking I need to let my salary increase a little or get a lower price for the place.

**Joe** · 11-10-2007, 10:14 AM

$130K Mortgage for just P/I will be $822.32. Add on $250/month for taxes and insurance (estimated for a $130K home with homestead)

So we now have a total of about $1073/month.

You say you make about $25K (I assume that is gross) thus NET will be about $1,675.70/month.

This would equate to a mortgage payment of more then %60 of your net... Not to smart of a move unless you have someone you know very well that wants to rent the other side as is from day 1.

Most likely, at $130K, it will need some upkeep before someone will want to move in, and will then need upkeep while you are in it...

Why not wait until you're more financially stable to play with your money?

Newguy07 · 11-10-2007, 10:23 AM

Quote:

Originally Posted by Joe

This would equate to a mortgage payment of more then %60 of your net... Not to smart of a move unless you have someone you know very well that wants to rent the other side as is from day 1.

this is what i was afraid off. i dont like the idea of tacking on the rent income. I personally would like to be able to afford this on my salary alone.

Newguy07 · 11-10-2007, 11:38 AM

I am going to take your advise joe. I just wanted to know what I need to do. Now I can prep myself for this type of investment.

I need to work on increasing my income.

Thanks a lot.

**XtremeVision** · 11-10-2007, 04:59 PM

Your mortgage broker should have told you this. You cant qualify for it anyway with that income.

What happened to the house you bought in live oak 2 years ago?

Newguy07 · 11-11-2007, 10:56 AM

Quote:

Originally Posted by XtremeVision

Your mortgage broker should have told you this. You cant qualify for it anyway with that income.

What happened to the house you bought in live oak 2 years ago?

Live oak was transeastern homes and they were bastards. I didn't purchase the house it was my father who purchased it. I was researching loans and calling brokers for him so I could learn.

Also, I didn't like that the 3 mortgage brokers that I called all said YES!! you can afford this. I really don't think so and all the brokers want to do is run my credit and try and sell me a loan. They are sales people.

11-10-2007, 09:31 AM	#1 (permalink)
Newguy07 Registered User	purchasing a duplex I been talking to a mortgage broker about a duplex that I have in mind for a purchase. The purchase price is 130k and I make about 25k a year right now with salary increase every 6 months. at my current salary i know i couldnt afford this place but since one unit make $600 a month the mortgage broker says she could tack that on to my income Is this a smart practice? I know I have to account for vacanices that is why I am not going to put all my money for a down payment and have left over.

11-10-2007, 09:59 AM	#2 (permalink)
MianoSM Custom User Title	No thats not smart. Not only do you have to plan on vacancies, but also evictions, landlord issues (preventative maintenance, upkeep, corrective maintenance). If things go well, and are all ideal - I'm sure you'd be in the money. However, if anything goes wrong your up the creek.

11-10-2007, 10:14 AM	#4 (permalink)
Joe Sodalime is good.	$130K Mortgage for just P/I will be $822.32. Add on $250/month for taxes and insurance (estimated for a $130K home with homestead) So we now have a total of about $1073/month. You say you make about $25K (I assume that is gross) thus NET will be about $1,675.70/month. This would equate to a mortgage payment of more then %60 of your net... Not to smart of a move unless you have someone you know very well that wants to rent the other side as is from day 1. Most likely, at $130K, it will need some upkeep before someone will want to move in, and will then need upkeep while you are in it... Why not wait until you're more financially stable to play with your money?

11-10-2007, 11:38 AM	#6 (permalink)
Newguy07 Registered User	I am going to take your advise joe. I just wanted to know what I need to do. Now I can prep myself for this type of investment. I need to work on increasing my income. Thanks a lot.

11-10-2007, 04:59 PM	#7 (permalink)
XtremeVision TR Balla Donor Supreme	Your mortgage broker should have told you this. You cant qualify for it anyway with that income. What happened to the house you bought in live oak 2 years ago?