patrick.net

Also believe its a 1962 Home that is 1944 square feet not a home built in 1944. At least that is how a few sites had it listed

Median income is about 46K so home values in that area should be around 129K, if we believe that historically values are about 2.8x median income

It would be prudent to take out a 30 year loan instead so that you can afford your home on one salary if something happens short (lay-off, missing work due to an accident) or long-term (you have children and one parent stays at home, some one gets disabled).

You can still pay it off on a 15 year or shorter schedule so your cash flow is better in the future.

PasadenaNative says

My boyfriend and I don't really like kids

Eww, icky poo, children!

Hi Billy, think hard. Imagine you are 40-45 years.
1. You sunk your extra income and first time buyer enthusiam into a fixer.
2. Newer homes are so much easier.
3. Can you rent it out easily, ie. Is the house close to a base or college or vacation attraction.
4. Is it wiser to buy a home that doesn't require yoir extra income to be more livable? Could you buy a second property for investment rather than use your extra income on fixing up the old one?
5. Be smart not romantic, you may get bored of that one and want a back door plan.

I have done the fixer and spent the dough and realized i should taken the extra money to invest in another. Lived it and learned. Bathrooms and kitchens cost$$$

E-man says

SF ace says

+1 about having kids, it's one of those things that a price tag is inapproproate measurement.

+2. I'd rather have more kids than more money. ;)

Success isn't by chance, but by choice.

E-man, people like you are why I am optimistic about the future of the USA. Immigrants continue to provide us with dynamic breeding stock so we will not go into demographic decline like Japan, or Europe.
Of course it will not be such a white USA, which is probably why we have Tea Party backlash against the demographic shift. Too bad those people are too bigoted to realize that a demographic shift is way better than a demographic decline.

APOCALYPSEFUCK is Tony Manero says

It's never been a better time to squat in an abandoned, foreclosed McMansion and hoard cash.

you mean gold, not cash, right?

I have a statement and three questions:

statement: NEVER fall in love with the house! It will hurt your ability to negotiate objectively.

Question- 1 I know the area...so I would especially be concerned about Forest fires, soil erosion issues from heavy rain after the numerous fires they have in these mountainous areas. Have you made plans for disaster scenarios up here? Fire flood insurance will be higher---if you can get it?

Question-2 Look at this comp...ready to move in. Built in 2008, it may cost more, but doubtful you will have mechanical, plumbing, electrical issues for many years. http://www.zillow.com/homedetails/37-Sierra-Park-Rd-Quincy-CA-95971/2128807918_zpid/#{scid=hdp-site-map-bubble-address}

Suggestion- SAVE the vigorish of a REAL-A-TOR. Use ZIP Realty, or Redfin or similar, if you MUST have one...and you may qualify for 3% cash back. NOT MANY JOBS UP THERE... GIVES YOU control...fewer qualified buyers. PS - you will have a possible big heating bill.

I have a statement and three questions:

statement: NEVER fall in love with the house! It will hurt your ability to negotiate objectively.

Question- 1 I know the area...so I would especially be concerned about Forest fires, soil erosion issues from heavy rain after the numerous fires they have in these mountainous areas. Have you made plans for disaster scenarios up here? Fire flood insurance will be higher---if you can get it?

Question-2 Look at this comp...ready to move in. Built in 2008, it may cost more, but doubtful you will have mechanical, plumbing, electrical issues for many years. http://www.zillow.com/homedetails/37-Sierra-Park-Rd-Quincy-CA-95971/2128807918_zpid/#{scid=hdp-site-map-bubble-address}

Suggestion- SAVE the vigorish of a REAL-A-TOR. Use ZIP Realty, or Redfin or similar, if you MUST have one...and you may qualify for 3% cash back. NOT MANY JOBS UP THERE... GIVES YOU control...fewer qualified buyers. PS - you will have a possible big heating bill.

Good Luck!

only the dumb and poor pop out mistake they cant afford, you both are only take home little over 3333 month net that is not enough to pop out a kid. One of you loose ur job or get sick and your saving is gone , now we as tax payer have to support you. Like i say before only the dumb and poor pop out mistake and let some1 else support it. I see lot of those dumb idiot with 3 or 4 or more kids and i think to myself, im supporting those idiot mistake, do they know what a condom is?
Dont be like them time will be harder as it go by, your job is not a life time job like ur mom and dad got before, you know most of ur friend and family living month to month there, i buy that house and wear a condom.

billy269 says

Septic is somewhat worrisome: 15 years old and is a pump/shallow mound leach field.

Septic can be very expensive. Did you get the septic system tested and did it pass? If so, you should still probably get some estimates of what the probability is that you would need to replace the entire system in 5/10 years, etc., and what that might cost you. If it didn't pass, or there were tangible issues, are you going to ask for them to be repaired or you to be credited estimated repair costs back at closing?

We sold our 30+ year old home in NJ a couple of years ago and lucked out - only needed to have the distribution box replaced ~ under $3K. Most other homes in the neighborhood that sold in the last bunch of years needed entirely new systems, which ran somewhere in the range of $20K-$30K.

Sounds like you found a great home! Great price, well below the bubble era, and you've got room to house a kid should you change your mind and choose to have one.

You will sleep very peacefully at night knowing that you've made a solid investment and that you're no longer working for the landlord.

(And I do hope you're walking to work every day with a commute of just 1 mile! The Google map makes it look like you're in the middle of the forest, but the other photo looks like you're right on the road.)

This will be a dream/nightmare moneypit.

Thanks for posting about your situation. I'm in a similar situation (in Michigan) and not sure if I should keep renting either.

To me, it seems that if you are unsure about your job prospects or house needs within the next 7 years, you should keep renting. So if you're confident about both those things, it doesn't seem like you have a whole lot to lose by buying.

It is a very bad thing to make micro financial decisions. Especially now, in 2011. No one can tell you if buying this house is a good thing to do or not when they do not know your whole financial picture. In today’s worldwide interlocked financial system, considering only what is happening in your local area is a huge mistake. As of now, US wide unemployment is 22%, inflation stands around 10%. By the end of next year inflation will have grown to about 15% and exponentially increasing.

If the Federal Reserve engages in QE3 (98% chance that they will; QE3 = third round of printing money), we will have 50% inflation in 2013. That means that food prices will rise so high causing social unrest. Here is a question: what should we all be doing right now: buying homes or stocking up on food? It would be much smarter to move in with family so that you may use available funds to stock up on food enough to last a full year, firearms to protect your family (tough to do in CA, but much easier to do in many other states), exchange your remains US dollars into gold and silver coins.

If what I have just mentioned seems out of your field of understanding, then there is a huge gap between your understanding of financial matters and mine. One more thing, when inflation hits 50%, interests rates have to rise as well, which means that fewer people will qualify for home loans and therefore fewer buyers and prices of homes will dropped even further. If you buy this house, chances are extremely high you will never recuperate your money.

For sure, it seems like a good decision when comparing buying and renting, but a very bad decision when we are facing the real danger of hyperinflation in the US within 3 years. Time is of the essence. By the way, who are your financial advisers? Do you have any? Who gives you or where do you go to get financial advice? A blog such as this is the wrong place for asking financial advice.

Here is good advice: go see a licensed financial advisor especially one who knows what QE1 and QE2 mean. One who knows what the Federal Reserve is. One who trembles at what is going on right now in Greece and Ireland and Italy. It is far better to pay $400 for an hour of real financial consultation than “free” advice on this blog which results in your "losing" multiple thousands.

I was just passing by.

Darryl....I just fired five financial advisors....when I caught them lying or being optimistic about the economy. I know very little, but have been increasing my nest egg by NOT putting it into securities. Gold baby is what people need ...until we get tired of playing with play money made by banksters.

I have looked at more properties in your area and have experience rehabbing houses. I would not buy the house you are evaluating, Too many unknowns.

Here is the most important question you should ask:

When you are looking for a house to buy, ALWAYS think about how sellable it would be if you were FORCED to sell because of some unknown future emergency. Don't dwell on "what" emergency could be...life is a series of good and bad events. Prepare for the worst....it is always on the horizon. If you owned and listed TODAY....with the equity YOU have in it TODAY.... How fast would it sell and for how much IN THIS "CRAPPY" market? How about next winter when the snow falls...and sales are in the toilet....and possibly the house has lost market value. I see this all the time. Whatever you do...most young motivated buyers want new or almost new....they are NOT frugal ....so are looking at not sweat equity...but new and move in condition. New sells faster than old...in most markets except bubbles.

ITS AN OLD HOUSE.....with nails in it older than you. Do you realize how high construction costs are when you are in a remote area? I bet you see lots of modulars or mobiles in that area. Stick built costs are higher in remote areas.

Dude that's a sweet house.

$55/sqft. You can't build for that. And you get the acre for free.

dan007 says

only the dumb and poor pop out mistake they cant afford, you both are only take home little over 3333 month net that is not enough to pop out a kid. One of you loose ur job or get sick and your saving is gone , now we as tax payer have to support you. Like i say before only the dumb and poor pop out mistake and let some1 else support it. I see lot of those dumb idiot with 3 or 4 or more kids and i think to myself, im supporting those idiot mistake, do they know what a condom is?

Dont be like them time will be harder as it go by, your job is not a life time job like ur mom and dad got before, you know most of ur friend and family living month to month there, i buy that house and wear a condom.

What a troll.

Don't listen to people like this. It sounds like you're financially responsible, have a nice savings built up, and are buying a modest home.

I think you'll be OK buying that house. I also hate kids.

Have you considered a low fixed 30 year mortgage with no prepayment penalty? This will allow you to make extra payments against the principal and allow you some "slack" during a difficult financial time.

zzyzzx says

I think you'll be OK buying that house. I also hate kids.

Ok lonely old fart in a few decades.

This is exactly what I was getting ready to post.

Have you considered a low fixed 30 year mortgage with no prepayment penalty? This will allow you to make extra payments against the principal and allow you some "slack" during a difficult financial time.

"zzyzzx says

I think you'll be OK buying that house. I also hate kids.

Ok lonely old fart in a few decades."

Oh please. How about us 'lonely old farts' use the money we saved on not having kids for a 25 year old Swedish nurse to take care of us?

And of course, all kids turn out just great and certainly don't continue to be a drain on a parent's resources when they become utter screwups in adulthood.

No need to copy and paste a comment. Just click the "Quote" link above that comment.

If you have good jobs nearby (no long commute) Get the inspection report. Check for termite damage. If the neighborhood is nice and no issues with neighbors I say go for it! (for what that's worth). Looks like a nice size house too. We live in the bay area so a $100K house sounds like pocket change to us.

I won't push the kid thing other than a nice house is great and all, but out of your 20s you may discover that you may need a little controlled mayhem to go with your nice house. Not for everyone though. Good luck. You sound like very thoughtful planners. It's a very tense time buying your first place.

Sounds like the buying is the right choice for you. If I were in your position that is what I would do.

I also love kids, I would have a few more if it was a viable choice for me. I also realize that not everyone should be a parent.

W.C. Varones says

Dude that's a sweet house.

$55/sqft. You can't build for that. And you get the acre for free.

I would be happier at $100K w/$20K down, but I'm hella picky when it comes to the big decisions. Get some $ concessions during inspection because there won't be any competing bids Billy. If there are, walk away and find another property in the next 6 months. Prices continue to decline. In other words, make them treat you like a king for being brave enough to step into this situation. "I'm doing a bank or a seller a big favor by buying this." Put that on your mirror where you brush your teeth.

I also like the prev idea that you get a 30 yr fixed and pay extra towards principle when you feel comfortable. It starts as a 30 but you can pay it off in 15 or 10 if you decide that's best. Gives you breathing room aka a margin for error, in case some huge bills get dropped in your lap, or job loss.

Sounds like you and your partner have good judgement at a young age. Confidence with judgement will take you a hell of a long way in this life. Btw, I didn't even think about kids until I married the right woman in my late 30's. Had my first kid at 40. Don't have kids until you want them. But sometimes what you want changes. That's all I'm sayin. Congrats on your deal and GL!

No need to copy and paste a comment. Just click the "Quote" link above that comment.

You can also select part of a post and then click quote to reference only that part.

"Septic is somewhat worrisome: 15 years old and is a pump/shallow mound leach field."

Run like hell, and don't look back. I rented a cabin in the country, and after I got to know the neighbors, they told me a horror story about raw sewage seeping in the backyard, and fights over property lines, etc. Unless you know exactly what you are getting into, and what you are liable for once you sign that contract, I would wait. Prices are going to go down and stay there for a long time anyway. What's your hurry?

Again, thanks so much to everyone.

Just had the septic inspected and pumped today. It looks like when it was put in 15 yrs ago they did a really nice job and the alarm and pump are working perfectly, and nothing wrong with the leachfield. The inspector did not anticipate any problems in the near future with only the 2 of us in the house.

I will respond to others later.

Diomedes777 says

"zzyzzx says

I think you'll be OK buying that house. I also hate kids.

Ok lonely old fart in a few decades."

Oh please. How about us 'lonely old farts' use the money we saved on not having kids for a 25 year old Swedish nurse to take care of us?

And of course, all kids turn out just great and certainly don't continue to be a drain on a parent's resources when they become utter screwups in adulthood.

Great for society for you not to have kids. We all thank you. I sincerely mean that!

Quincy rocks On the 4th of July weekend!!!! HSMF!!!! yeaHYEA!

great area great people LOVE QUINCY!!!

PasadenaNative says

People get so conservative and uptight when people mention not having kids. Do you not think that others may be different from you? My boyfriend and I don't really like kids, and, we couldn't afford them even if we wanted them! Please, freedom of choice,! They obviously don't make everyone better people or you wouldn't see the number of divorces and child abuse/neglect cases. End of sermon. Thank you.

I totally agree with you that it is a personal choice, and that people who don't want (or can't have) children shouldn't be made to feel inadequate or bad for not having kids. Live and let live. However, I have noticed that there is a certain defensive or aggressive response from the NK crowd. As a parent I am sometimes jolted by the reactions of the militant NK people out there -- it's as if they believe that their decision to not have kids entitles them to never encounter kids -- which I think is a totally bogus attitude. Everybody was a kid at one time or another...deal with the reality that there are going to be kids in the world -- and on a good day embrace and cherish them.

Shame on me for getting so off topic. Hard to resist.

I would like to weigh in, What could you make with your down payment invested in say, one of your high tech stocks of your choosing say Apple say you bought 100 shares or 70 shares, now of course there are dozens no hundreds of stocks one could choose, heck you could choose a LOW BETA High yielding stock also and kick the TOTAL RETURNS you planing on getting of your owning the house, and being as you can rent for same price and gain all the UPSIDES that renting brings with it, Say your plans change, and or one of you loose the job and or the world changes as it prone to do.

I can't understand why so many of us, (me when younger) fall for the HORSE POOP that ownership is this answer to all. IT is not!

swebb says

I totally agree with you that it is a personal choice, and that people who don't want (or can't have) children shouldn't be made to feel inadequate or bad for not having kids. Live and let live. However, I have noticed that there is a certain defensive or aggressive response from the NK crowd. As a parent I am sometimes jolted by the reactions of the militant NK people out there -- it's as if they believe that their decision to not have kids entitles them to never encounter kids -- which I think is a totally bogus attitude. Everybody was a kid at one time or another...deal with the reality that there are going to be kids in the world -- and on a good day embrace and cherish them.

Shame on me for getting so off topic. Hard to resist.

Totally agree with you swebb. The self-righteous NK crowd is really starting to bother me as well.

yup they're expensive, yup they're a lot of work, yup you have to give up a ton of freedom, but in the end it's so worth it ---FOR ME. I feel sorry for people who think that hiring a 25 year old swedish nurse somehow equates to the unconditional love of a family.

And Billy - you sound like a responsible kid and by looking at your finances you appear to manage your money very well. In my opinion it's a close call - from a FINANCIAL standpoint, but all of your decisions in life shouldn't be made on what would make or lose you the most money. Kids are the best example I can think of, they cost a lot but many people would give up every dime they ever made just to have one. Of course you also can't make decisions in life based only on what makes you happy but in this case if buying this house would make you and your wife happy then buy it, and enjoy it, and don't regret it. Good luck.

Have you received a notice of default yet? If not, you've got several months ahead of you. First thing is to ask for a loan modification, perferably under the HAMP program. If you don't qualify for HAMP, ask for an in-house modification.

While you are doing that, make an application for arrears assistance from Keep Your Home California. That is good for up to $15K. There is also an unemployment assistance program that will pay your mortgage for 6 months. Hurry though, before program funds are exhuasted.

Most important, keep in touch with the trustee. Bank will tell you one thing, but it's the trustee that controlls the sale.

Good Luck.

It sounds like you've done your homework. What I like is that you aren't the first owners and the house is older. but here's some questions

1) You might not want to have kids now but it might be a good idea to examine the school systems just in case

2) It's always a good idea to look up other stats about the area. Police logs can be open and crime rates are public.

3) shop around to find out about competition for various services. Energy, communications..heck food. Maybe find out who has done the most plumbing work in the area before you try to do any on your own. Towns can have different plumbing codes

4) With work try to have a plan b if not plan c just in case. I wouldn't recommend going to school at the same time since this is a large purchase. But check with your employers if you have non competitive agreements. Get a list of competitors in the area.

I hope you get the house, AND I hope you do this too. Upgrades, Repairs can be had MUCH MUCH MUCH MUCH MUCH MUCH MUCH cheaper than anyone believes. Say you want a new floor, price out the material at HD. Now, get prices from people that put floors in locally. Remember, take 40% off YOUR cost at HD and that is what they are buying for. You'll be surprised that a fair price to put it in is what your total bill at HD would be.