Submitted by Clue101abc t3_104wpkj in personalfinance
23yo buying ~490K house at reduced price
My girlfriends father is starting to have his house foreclosed on. The bank wants 350K and it’s a 7 bedroom 3.5 bath house less than an hour from NYC. I make roughly 51K a year after taxes. According to Zillow’s calculator if I got the house around 380K it would be around 3K a month in expenses (not including utilities). I have 50k in my life savings and was planning to use that for the down payment. The house has a basement that the old homeowners would rent out. I’d like to live in the basement which has 2 of the bedrooms and 1 of the bathrooms. And rent out the rest of the house to use to put into the mortgage.
I don’t know if I should do this or not. It sounds like a good deal for me financially but there are some huge glaring issues.
I have no debts I paid off my college before I even finished. But I don’t think I have a credit score. I never ended up getting a credit card so I probably wouldn’t even be accepted for a mortgage.
Another issue is I have no experience being a homeowner or how to rent out a place; but I have family who could help me with that.