Impulsive house purchase in East Bay
I'm in serious trouble. Bought this house in east bay very recently, and now breaking up with partner. Only my name is on the title and mortgage, but with partner moving out, it will be very difficult to pay the mortgage since I only put %10 down, plus I bought expensive furniture to fill the house too. We're both having high paying jobs but still tough to afford on single income. What are my options? The house is 3br 3ba with a big backyards (hard and expensive to maintain). I feel like it's tough to find roommates or rent it out but I may be wrong. Any suggestions? I'm under a lot of stress. TC 310k, monthly mortgage including tax $5600.
Rent it out
I don't know how logistics work for renting a house. Do you recommend working with agencies?
Craigslist
Find room mates to rent individual bedrooms. Loads of new grads join tech companies every year.
You can try selling the house quickly if you still have a bit of financial runway, and let this be a lesson for you...
Getting roommates should be fairly easy. You can also put the extra rooms on Airbnb, or even the whole house. Sorry to hear about the breakup. That sucks.
You should only a buy that you can pay on your own TC, so it gives your wife the option to quit working when you have a baby... or if they get laid off. Get some roommates and rent it out, good luck.
And this folks is phase 1 of the housing bubble here bursting ^ You probably won't listen, but here is my suggestion. Immediately list the house and downsize into something affordable, especially if you can recapture the down payment. If you can't, or if the monthly payment is too much, just stop paying the mortgage. Seriously. It will take anywhere from months to two years to foreclose and evict you, in the meantime you live rent free. Secondly, there is a chance that they renegotiate the principal lower with you if they don't want the actual house ( which might be the case in a year or two if we're in recession)
This is terrible advice. If you want to sell the house thatâs fine. But donât just stop paying the mortgage, it will hit your credit score and affect your future purchase. Rent or sell.
People are so scared of their fcking credit score, who cares . For 7 years he won't have good credit and then it resets, that seems the appropriate time for him to cool off and learn how to buy things he can afford. In the meantime he will have free rent for a year or two. If he can't sell, this is the appropriate action over using all of his money and stress, and will result in higher net savings.
Its very easy to get room mates. Just offer a little less if you are so scared and them rent it out or you could do airbnb. Later you can increase the rent. This way your money is also getting invested and dont have to sell I am just curious you say you have high paying jobs just wanted to know whats your TC and whats the price of the home
Well not very high paying but mine is low 300s liquid, 1MM house
I am not sure what are you scared off. You can pay all by yourself right, but you can even rent ot airbnb too.
By the way, actually relevant here, whatâs your TC and monthly mortgage payment, taxes, and HOC due? And if youâre comfortable with sharing, how much liquid savings do you have?
Low 300s TC, whole monthly mortgage including tax is $5600 out if which $3200 is interest, $1200 is principal, $1150 is escrow (tax). I didn't get a very good rate since only %10 down. No hoa dues. My liquid saving is not much currently, only small emergency fund, but I'll vest stocks later this year, maybe 55k-60k after tax.
I see - the good news is that you can definitively sustain financially *even in case* you canât get a roommate / sell the house, so try not to panic too much. However, two things are concerning: - your spending/saving: it seems that either you are having a luxury-ish lifestyle with a lot of spending, or you invest into illiquid assets a bit too aggressively, which pushed you to take this horrible mortgage deal... which brings me to the second point - your mortgage: you and your ex-partner taking this mortgage is literately bleeding you wallet everyday. Try to save some good amount of money to catch up on equity and get a lower rate if you want to keep this house. Remember that getting a roommate is a bandaid not a long term fix, and no matter how much rent youâll be able to charge, this horrible APR is still killing your financial health.
Rent it rent it. It's very easy. Especially in the bay area. We found our renter in just 1 day. If you can't find one that will take the entire home then rent individual rooms and just live there.
So sorry. This is my fear of buying a house on a single income
Wth!! You are not confident about your relationship
Funny how statements can be interpreted. There no SO in my story lol