I want a house *sob*

[cktc]

I've been trying with this DH's condo thing. We've been fixing it up. We agreed to wait 4 years, maybe it's 3 now to buy a house. It's just...why again? 

It's allegedly cheap. Ok so PITI is $525 (6.25% do we bother to refi down to 4.25%?). COA is $175. $5k a/c repair is looming, and there is an issue with water pressure we need to find and fix. We've already spent about $3k on plumbing and new fixtures. He wants to keep it forever and ever and rent it out. He seems to think it will be a great investment property. Average unit rent is about $850. Not enough to cover any inevitable pricey repairs.

It's 850 sqft, has one tiny upstairs bathroom, an outdoor, unfinished laundry room, creaky stairs and two small bedrooms. 

Baby is on the way and plan was to work from home 4 days a week. Where? Do I convert the dining area to an office? Put the baby in the master with us and not have a nursery?

I make $40k, DH will make $55-60k this year. A single level 3br/2bth in a decent neighborhood is about $200k.

We're behind on retirement savings, have some 0% cc debt, I have student loans, and 3 more years to get a short sale off my credit, but my score is around 715.

I'm a YM nightmare 

[TheHaitian]

Why don't you buy?

The short sale is not an issue; at least I don't think it is. My friend just bought a house with his wife and he filed bankruptcy 5 years ago.

But his wife had good credit; between her credit and his income : they got approved.

I think their house was around ~300k I think or ~320k and 3.5% down (FHA).

[Deleted]

I am terrible at giving advice on this type of thing, but wanted to wish you good luck.

[TheHaitian]

Also at 95k-100k/year combined you can definitely afford a mortgage on a 200k house.

Do you have a down payment saved or you would need to sale your DH condo?

When we closed on our house our combined income was 97k and the total mortgage was for 306.5k at 4.25%.

[tcu2003]

Everyone is different, but my kiddo's nursery was worthless. He never slept in it - for naps or bedtime. He slept in our room, which worked well for us - he nursed overnight fairly often, so I got more sleep, but I also know that's not doable for everyone and some babies are loud sleepers.

Is your master bedroom large enough to use a corner of it as your office if you use the second bedroom as a baby bedroom?

[The Captain]

Aug 5, 2015 17:41:07 GMT -5 cktc said:

I've been trying with this DH's condo thing. We've been fixing it up. We agreed to wait 4 years, maybe it's 3 now to buy a house. It's just...why again? 

It's allegedly cheap. Ok so PITI is $525 (6.25% do we bother to refi down to 4.25%?). COA is $175. $5k a/c repair is looming, and there is an issue with water pressure we need to find and fix. We've already spent about $3k on plumbing and new fixtures. He wants to keep it forever and ever and rent it out. He seems to think it will be a great investment property. Average unit rent is about $850. Not enough to cover any inevitable pricey repairs.

It's 850 sqft, has one tiny upstairs bathroom, an outdoor, unfinished laundry room, creaky stairs and two small bedrooms. 

Baby is on the way and plan was to work from home 4 days a week. Where? Do I convert the dining area to an office? Put the baby in the master with us and not have a nursery?

I make $40k, DH will make $55-60k this year. A single level 3br/2bth in a decent neighborhood is about $200k.

We're behind on retirement savings, have some 0% cc debt, I have student loans, and 3 more years to get a short sale off my credit, but my score is around 715.

I'm a YM nightmare 

Ok, just to be clear - I'm a chick who's had a kid so that's my perspective as to how I'm looking at this.

You're expecting, so the hormones are going wild.  Not the best time to make major decisions.  Just being honest.

Your DH will not qualify for the house on his salary alone, and with a short sale you'd be lucky to get financing on yours, let alone at a decent rate.

This AND you have student loans to pay off?  What if something happens with the baby and you want to work less?

In other words, don't stretch yourself too thin.

Use the second bedroom as a nursery and den. 

Finally, how much of an EF do you guys have?

[cktc]

Aug 5, 2015 17:49:23 GMT -5 TheHaitian said:

Also at 95k-100k/year combined you can definitely afford a mortgage on a 200k house.

Do you have a down payment saved or you would need to sale your DH condo?

When we closed on our house our combined income was 97k and the total mortgage was for 306.5k at 4.25%.

I only have about $3300 saved in a taxable account, but DH can reuse his VA loan.

We still owe $66k on the condo. Zillow has units priced around $77k, so we should at least break even after fees.

[cktc]

Aug 5, 2015 17:50:37 GMT -5 tcu2003 said:

Everyone is different, but my kiddo's nursery was worthless. He never slept in it - for naps or bedtime. He slept in our room, which worked well for us - he nursed overnight fairly often, so I got more sleep, but I also know that's not doable for everyone and some babies are loud sleepers.

Is your master bedroom large enough to use a corner of it as your office if you use the second bedroom as a baby bedroom?

Yeah, if I change out a lot of the old furniture in there I could probably squeeze in a desk. I like the co-sleeping option, but DH is leery.

[cktc]

Aug 5, 2015 18:02:58 GMT -5 The Captain said:

Aug 5, 2015 17:41:07 GMT -5 cktc said:

I've been trying with this DH's condo thing. We've been fixing it up. We agreed to wait 4 years, maybe it's 3 now to buy a house. It's just...why again? 

It's allegedly cheap. Ok so PITI is $525 (6.25% do we bother to refi down to 4.25%?). COA is $175. $5k a/c repair is looming, and there is an issue with water pressure we need to find and fix. We've already spent about $3k on plumbing and new fixtures. He wants to keep it forever and ever and rent it out. He seems to think it will be a great investment property. Average unit rent is about $850. Not enough to cover any inevitable pricey repairs.

It's 850 sqft, has one tiny upstairs bathroom, an outdoor, unfinished laundry room, creaky stairs and two small bedrooms. 

Baby is on the way and plan was to work from home 4 days a week. Where? Do I convert the dining area to an office? Put the baby in the master with us and not have a nursery?

I make $40k, DH will make $55-60k this year. A single level 3br/2bth in a decent neighborhood is about $200k.

We're behind on retirement savings, have some 0% cc debt, I have student loans, and 3 more years to get a short sale off my credit, but my score is around 715.

I'm a YM nightmare 

Ok, just to be clear - I'm a chick who's had a kid so that's my perspective as to how I'm looking at this.

You're expecting, so the hormones are going wild.  Not the best time to make major decisions.  Just being honest.

Your DH will not qualify for the house on his salary alone, and with a short sale you'd be lucky to get financing on yours, let alone at a decent rate.

This AND you have student loans to pay off?  What if something happens with the baby and you want to work less?

In other words, don't stretch yourself too thin.

Use the second bedroom as a nursery and den. 

Finally, how much of an EF do you guys have?

All good points. I still owe $28k on the loans. Payment is $315 but I've been paying $600 to have them paid off in 4 years.

We only have about $4k set aside for EF.

[MJ2.0]

Unless you also enjoy spending a lot of time on yard and home maintenance, don't do it. It's like having another baby but (IMO) much less rewarding.

[TheHaitian]

Aug 5, 2015 18:18:04 GMT -5 MJ2.0 said:

Unless you also enjoy spending a lot of time on yard and home maintenance, don't do it. It's like having another baby but (IMO) much less rewarding.

Speak for yourself, I love doing yard work. My house curb appeal is "DA BOMB".

Actually have neighbors telling my wife and MIL "Thank you because we are bringing up the neighborhood"

[MJ2.0]

Let me rephrase that - if you would like to spend a lot of free time (oops, I'm a new parent - what's this "free time" you speak of?) doing yard and home maintenance, don't do it.... Unless you can afford to hire a lot of it out.

[TheHaitian]

Aug 5, 2015 18:28:18 GMT -5 MJ2.0 said:

Let me rephrase that - if you would like to spend a lot of free time (oops, I'm a new parent - what's this "free time" you speak of?) doing yard and home maintenance, don't do it.... Unless you can afford to hire a lot of it out.

I guess I need a kid

[cktc]

Aug 5, 2015 18:28:18 GMT -5 MJ2.0 said:

Let me rephrase that - if you would like to spend a lot of free time (oops, I'm a new parent - what's this "free time" you speak of?) doing yard and home maintenance, don't do it.... Unless you can afford to hire a lot of it out.

Well desert landscaping is pretty popular in my area, so the front could be easy enough. Brick fence takes care of the back  .

Condo still has maintenance so I don't know how much that would change.

My ideal would be a nice community with common pool/play area so I don't have to maintain that. HOA fees are usually $45-75 which definitely beats the COA.

[Ryan]

If you buy a house that is in a 'decent' neighborhood, then you are probably settling for any old house. That means you will probably not really like the house in 4 years and want to move again.

Stay put and save money. Your place may not be ideal, but it is big enough. You don't need an 'office' to work from home. I have a nice office in my basement with a big deal, printer, scanner, and TV. 99% of the time I work at the dining room table.

[steph08]

I'm no help - I got pregnant and we moved from our 2 bed/1 bath house to a 3/2.

On the cosleeping - it doesn't just mean baby in the bed, it means baby in the same room (my DH didn't know that!). Our DD slept in our room for 4.5 months and by then we both got better sleep apart.

I would try to hang in there. If your short sale will be gone in 3 years and your loans in 4, you will have a lot of options. You could move now but might have to settle for something that you aren't happy in.

[NastyWoman]

He wants to keep it forever and ever and rent it out.

We still owe $66k on the condo. Zillow has units priced around $77k, so we should at least break even after fees

If you don' sell you would need an additional mortgage for the new place.  How will you pay for 2 mortgages if you run into tenant problems and have no income from the condo?

I understand that you want more space, but is that really worth the additional lack of sleep added to the baby's input in that respect?   I'm with many others: stay put and save your money. You will get out of there in time and you will be in a better position than you are now to buy something you really want.

[Knee Deep in Water Chloe]

We didn't get a house until #2 was 2.5. It's going to be okay. DH just wants you to be financially stable. 

[MarleyKeezy78]

Aug 5, 2015 17:50:37 GMT -5 tcu2003 said:

Everyone is different, but my kiddo's nursery was worthless. He never slept in it - for naps or bedtime. He slept in our room, which worked well for us - he nursed overnight fairly often, so I got more sleep, but I also know that's not doable for everyone and some babies are loud sleepers.

Is your master bedroom large enough to use a corner of it as your office if you use the second bedroom as a baby bedroom?

We lived in a two bedroom/one bath apt when DS was born. He didn't sleep in his room for a whole year(couple of naps), we just set up a pack and play and a cradle swing in our room and it worked out great. Having the baby at arms reach at night is so nice so you don't have to pad around to another room while tired. It will also give you more time to decide what you really want and need.

[phil5185]

(6.25% do we bother to refi down to 4.25%?

That 2% cuts your 'monthly' by about $80.

Where? Do I convert the dining area to an office? Put the baby in the master with us and not have a nursery?

Nurseries are way over-rated - if you have a nanny you may need a separate room for a nursery. But for most folks, the baby will be in your room for 6 to 9 months - and then in a crib in the second bdrm. But they don't need a "room", they live in the crib.
Make the second bdrm into an office and put the crib in there with you - at first you'll roll a bassinet room to room, master bdrm at night, office by day. 

The one bedroom cottage that we lived in during WW2 (for 7 yrs) was only about 500 sq ft, there were 5 of us - it's not a big deal, kids don't need much room. (It's only on TV where each kid has a room/nursery and a nanny).

[MarleyKeezy78]

BTW, when we did buy our house, it ended up being a two bedroom, one bath, lol! It's 1100 sq ft with a sunroom and unfinished basement. We don't plan on anymore kids so it is great for our family. I think knowing how many kids are in the future is a great place to start before buying a home and then go from there. Also think about school districts. JMO.

[MJ2.0]

Aug 5, 2015 18:30:02 GMT -5 TheHaitian said:

Aug 5, 2015 18:28:18 GMT -5 MJ2.0 said:

Let me rephrase that - if you would like to spend a lot of free time (oops, I'm a new parent - what's this "free time" you speak of?) doing yard and home maintenance, don't do it.... Unless you can afford to hire a lot of it out.

I guess I need a kid

Lol! Maybe, I don't know. I just know that after working all week, I would have much rather relaxed or spent time with DS than do house/yardwork all weekend. Once my financial and career situation improve I may revisit buying, but nothing bigger than a 3 bedroom townhouse - because I still don't want to do yard work.

[sarcasticgirl]

I want a house too! but they run well over a million in my neighborhood. half a mill if I want to do a reno. 

Mr. Sarcastic needs a second job that pays about 5 times what the first one does! 

[Deleted]

Aug 5, 2015 18:30:02 GMT -5 TheHaitian said:

Aug 5, 2015 18:28:18 GMT -5 MJ2.0 said:

Let me rephrase that - if you would like to spend a lot of free time (oops, I'm a new parent - what's this "free time" you speak of?) doing yard and home maintenance, don't do it.... Unless you can afford to hire a lot of it out.

I guess I need a kid

I have two kids and I still like doing yard work and I have a lot of it. 

[cranberry]

I'd try to hang in there too. I know it's tough.

on the office - I'm sure you can come up with a small space solution. What kind of equipment do you have?

I recently moved from a 2 BR condo to a 1 BR apartment and was nervous about giving up my home office, which was the second bedroom. Now I work out of my living room and it's totally fine. I don't mind it at all.

Hang in there and best wishes!

[Opti]

Aug 5, 2015 18:23:01 GMT -5 TheHaitian said:

Aug 5, 2015 18:18:04 GMT -5 MJ2.0 said:

Unless you also enjoy spending a lot of time on yard and home maintenance, don't do it. It's like having another baby but (IMO) much less rewarding.

Speak for yourself, I love doing yard work. My house curb appeal is "DA BOMB".

Actually have neighbors telling my wife and MIL "Thank you because we are bringing up the neighborhood"

I agree, it all depends on what you like and value. I love having my own yard, being able to garden, grill out, have a backyard to entertain in, hang out, etc. I love having a house, except when they need more $$$ for repairs than I have. Then it kinds sucks.

But I still think houses are cool.

[Opti]

Aug 5, 2015 21:18:01 GMT -5 sarcasticgirl said:

I want a house too! but they run well over a million in my neighborhood. half a mill if I want to do a reno. 

Mr. Sarcastic needs a second job that pays about 5 times what the first one does! 

Are you in Seattle, NYC or somewhere similar?

[mamasita99]

I suggest visiting IKEA and getting some small space ideas from them. You really can do a lot with 2 bedrooms, and seeing all the cool setups might give you the extra push you need to carry through with your financial plans!

[TheHaitian]

Aug 6, 2015 6:13:47 GMT -5 mamasita99 said:

I suggest visiting IKEA and getting some small space ideas from them. You really can do a lot with 2 bedrooms, and seeing all the cool setups might give you the extra push you need to carry through with your financial plans!

I second Visiting IKEA if you have one near you.... My wife and I LOVE that place.

One of our friends that is actually due today purchase a 1920 home were the bedrooms are on the small side and she used IKEA furniture for both their rooms and baby room and it really doesn't feel as small as it is.

[ohmomto2boys]

I would try to hang in there too and reconfigure the current space you live in - switch out furniture if possible.  
I would refi - 2% is a big difference per month.
More space is not always better - I am speaking from experience.  We upsized too much.  While we can afford it, it is daunting to keep it maintained.