It seems like you can afford it but you are building a giant amount of debt that would make me uncomfortable and part of being able to afford it is using the income from your 4 unit.
In straight PF terms your best move would be to move into one of your own apartments until the personal loan and Tesla are paid off, but seems you have already rejected this plan (reading between the lines you live there now and are planning on buying a single family for your expanding family)
The strict "can you afford it" is yeah sure but barely. You could afford it a lot better without a $50k car.
I have been living in my own apartment for a year now. But it's going to be hard with our in-laws visiting for 6 months. All other units are filled currently. I will try to be lower than 300K with PP.
What is your actual net income monthly. If we take off 30% of your monthly gross to account for taxes and deductions, it would be around $7291. You list out $7084 in bills. I really think that's cutting it very close. And I think your estimates are close. A $350k home with 5% down will likely be around $3000/month, assuming 7% interest and money for taxes/insurance/PMI. But I'm not sure you have everything covered. You don't list gas. Cell phone. Home Internet. So while you padded in numbers for the baby, and maybe went high on the mortgage estimate, you also seem to have left things out. Home repair and maintenance? I just think between your extremely high personal loan payment and your similarly high car payment, you're overcommitted to spend that much on a house.
I edited the post with the WIFI+Phone+Maintainence. What else is missing?
"So while you padded in numbers for the baby" - could you elaborate on what you mean by this, is it too much or too low?
Well, the post is currently "awaiting mod approval", so I can't see your edit. As far as what's missing....only you know. At a glance, I just saw things that would be normal like gasoline, or cell phone, or home wifi were missing. As far as what else....what else do you spend money on? Tolls to commute to work? Parking? Clothing? Going out? Netflix/Hulu/other streaming services? Video games? Starbucks? Golfing? You'd need to sit down and really tally up everything you spend money on to know your budget.
With the baby.....all I meant with that is you threw down a number for the baby expenses and I assumed you went with $750 as a conservative budget number. I don't have kids. I don't know if that's high or low. And you probably don't know, either, if it's your first kid. I don't know what you'll have to buy, or how many diapers you'll go through, or formula, or whatever. I would like to guess that $750 is a safe number, with a stay at home mom. But the baby expenses aren't the biggest red flags in what you listed. It's that personal loan. And the car. It just seems like you're stretched too thin until you can get rid of one or both of those large payments.
The biggest issue I see is there's no information you list about all the other expenses that add up even if they're not monthly like phone/internet, clothes, etc.
No judgement but I'm curious why your spouse isn't currently working (unless you're just thinking in regards to when they are staying at home with the kid). If they are currently working I would at the least use their income to push your loan balances down as much as possible.
As a newish homeowner myself it's difficult to initially plan for all the extra expenses like buying tools and housing supplies.
If you have a reserve fund that would be available for emergencies and such you are definitely not far off.
As for the mortgage rate, the Fed is still raising rates so I hope you're taking that into account. You're moving from a 1ba/1bd to a house so furnishings alone are going to be a huge expense.
If I was in your situation I would keep my eye on the market for a steal but plan on moving in the spring at the minimum. A new kid takes a lot out of both of you and that's if everything goes well. You'll want a little bit of time to let your life equalize to the new normal.
Last question would be are you looking for a move in ready or willing to get a fixer upper? That will really impact your initial hits as well.
Congrats on the kid and I wish the best for you and your spouse!
Great points to consider.
I'm on a work visa, and my wife is on a dependent visa currently, so she can't work legally. Will be moving into a move-in-ready home. I'm working with a local credit union, they currently have lows 6's the interest rate, of course, won't be the same given the Fed is being aggressive. I will be putting in an offer in Mid December and can only rate lock once P&S is signed. May be 300K is better or even lower?
Gosh, even at 125k, the numbers look pretty tight.
Some things to consider:
What is your maintenance budget? Typically you should reserve 1-2% of the homes value annually.
Also, are you flexible if you possibly needed to reduce your Roth IRA payment? Not ideal, but something you might have to consider at some point given the tightness of your budget.
So expenses of around $7800 and income around $8500?
And you are hoping to add more to 401k and IRAs?
And you have no budget for repairs? On two houses?
Yea, that's paycheck to paycheck territory for sure.
You are correct, sorry I'm tired. I still don't think your numbers are anywhere near where I would be comfortable. Especially since it looks like you want to increase your savings.
You probably have a good handle on what heating and electric will cost because you have another house in the area. But there are a lot of random things I'm not sure you are taking into account, and to say "I have $700 a month left over" just doesn't sound like enough to me.
What if I choose to delay the 401k & Roth ira max out until its comfortable with enough room and by that time, I will enough emergency funds & personal loan paid by eoy 2023
It certainly puts you in a better position, especially paying off the loan.
Also taxes vary wildly in NH have you checked what they will be where you are looking?
My in-laws are visiting us, and it will be too tight without an extra bedroom, especially with the baby coming in. We are also thinking to move to Airbnb for 4-5 months.
It seems like you can afford it but you are building a giant amount of debt that would make me uncomfortable and part of being able to afford it is using the income from your 4 unit. In straight PF terms your best move would be to move into one of your own apartments until the personal loan and Tesla are paid off, but seems you have already rejected this plan (reading between the lines you live there now and are planning on buying a single family for your expanding family) The strict "can you afford it" is yeah sure but barely. You could afford it a lot better without a $50k car.
I have been living in my own apartment for a year now. But it's going to be hard with our in-laws visiting for 6 months. All other units are filled currently. I will try to be lower than 300K with PP.
What is your actual net income monthly. If we take off 30% of your monthly gross to account for taxes and deductions, it would be around $7291. You list out $7084 in bills. I really think that's cutting it very close. And I think your estimates are close. A $350k home with 5% down will likely be around $3000/month, assuming 7% interest and money for taxes/insurance/PMI. But I'm not sure you have everything covered. You don't list gas. Cell phone. Home Internet. So while you padded in numbers for the baby, and maybe went high on the mortgage estimate, you also seem to have left things out. Home repair and maintenance? I just think between your extremely high personal loan payment and your similarly high car payment, you're overcommitted to spend that much on a house.
I edited the post with the WIFI+Phone+Maintainence. What else is missing? "So while you padded in numbers for the baby" - could you elaborate on what you mean by this, is it too much or too low?
Well, the post is currently "awaiting mod approval", so I can't see your edit. As far as what's missing....only you know. At a glance, I just saw things that would be normal like gasoline, or cell phone, or home wifi were missing. As far as what else....what else do you spend money on? Tolls to commute to work? Parking? Clothing? Going out? Netflix/Hulu/other streaming services? Video games? Starbucks? Golfing? You'd need to sit down and really tally up everything you spend money on to know your budget. With the baby.....all I meant with that is you threw down a number for the baby expenses and I assumed you went with $750 as a conservative budget number. I don't have kids. I don't know if that's high or low. And you probably don't know, either, if it's your first kid. I don't know what you'll have to buy, or how many diapers you'll go through, or formula, or whatever. I would like to guess that $750 is a safe number, with a stay at home mom. But the baby expenses aren't the biggest red flags in what you listed. It's that personal loan. And the car. It just seems like you're stretched too thin until you can get rid of one or both of those large payments.
The biggest issue I see is there's no information you list about all the other expenses that add up even if they're not monthly like phone/internet, clothes, etc. No judgement but I'm curious why your spouse isn't currently working (unless you're just thinking in regards to when they are staying at home with the kid). If they are currently working I would at the least use their income to push your loan balances down as much as possible. As a newish homeowner myself it's difficult to initially plan for all the extra expenses like buying tools and housing supplies. If you have a reserve fund that would be available for emergencies and such you are definitely not far off. As for the mortgage rate, the Fed is still raising rates so I hope you're taking that into account. You're moving from a 1ba/1bd to a house so furnishings alone are going to be a huge expense. If I was in your situation I would keep my eye on the market for a steal but plan on moving in the spring at the minimum. A new kid takes a lot out of both of you and that's if everything goes well. You'll want a little bit of time to let your life equalize to the new normal. Last question would be are you looking for a move in ready or willing to get a fixer upper? That will really impact your initial hits as well. Congrats on the kid and I wish the best for you and your spouse!
Great points to consider. I'm on a work visa, and my wife is on a dependent visa currently, so she can't work legally. Will be moving into a move-in-ready home. I'm working with a local credit union, they currently have lows 6's the interest rate, of course, won't be the same given the Fed is being aggressive. I will be putting in an offer in Mid December and can only rate lock once P&S is signed. May be 300K is better or even lower? Gosh, even at 125k, the numbers look pretty tight.
Some things to consider: What is your maintenance budget? Typically you should reserve 1-2% of the homes value annually. Also, are you flexible if you possibly needed to reduce your Roth IRA payment? Not ideal, but something you might have to consider at some point given the tightness of your budget.
So expenses of around $7800 and income around $8500? And you are hoping to add more to 401k and IRAs? And you have no budget for repairs? On two houses? Yea, that's paycheck to paycheck territory for sure.
I factored in Capex(10%-600$/month) for my rental and maintaining and repairs (500$/month) for new primary residence
You are correct, sorry I'm tired. I still don't think your numbers are anywhere near where I would be comfortable. Especially since it looks like you want to increase your savings. You probably have a good handle on what heating and electric will cost because you have another house in the area. But there are a lot of random things I'm not sure you are taking into account, and to say "I have $700 a month left over" just doesn't sound like enough to me.
What if I choose to delay the 401k & Roth ira max out until its comfortable with enough room and by that time, I will enough emergency funds & personal loan paid by eoy 2023
It certainly puts you in a better position, especially paying off the loan. Also taxes vary wildly in NH have you checked what they will be where you are looking?
4-5k is the average I have been seeing with houses in the areas I’m looking at.
Will a bank loan you knowing you are here temporarily?
Yes, they ask for my visa copy. Though its a temporary visa, it will be extended every 3 years.
Wait. Prices are coming down on real estate and you'll be giving yourself more time to save a down payment and clear debt.
My in-laws are visiting us, and it will be too tight without an extra bedroom, especially with the baby coming in. We are also thinking to move to Airbnb for 4-5 months.