We’re 2 months in to our 18 month rental here in SD. The owner, who just purchased this property in Jan 2024, needs to sell.
His realtor asked us if we are interested in purchasing the home, else he’ll put it on the market. I understand the buyer pool will be smaller as they can’t kick us out and will have to take on the lease and be a landlord for 16 more months before they can move in. Here’s another reason the buyer pool is further reduced: it’s in a beautiful 55+ Community. One of the owners has to be 55+ and no kids are allowed to live in the property.
The home was built in 2017 and the owner remodeled it after he purchased (Jan 2024). He put in beautiful vinyl flooring that looks like wood, painted the entire home, replaced all countertops and light fixtures and modernized the kitchen and bathrooms (he changed the cabinet doors and pulls to be more modern). He put in a more modern shower and beautiful white and gold upscale GE Cafe kitchen appliances.
So DH and I have been enjoying the lovely upgrades as renters as well as the miles and miles of trails surrounding the neighborhood.
Homeowner is requesting $1.8M. He purchased it for $1.6M in January and Zillow appraises it as $1.66M now (June 2024). We did not plan on purchasing a home until the end of our lease (October 2025), expecting real estate prices and loan rates to go down by then. We moved from Austin Tx in late 2022 and are getting to know SoCal. Because we work for ourselves as ERP consultants (S1 Corp), banks will not lend us a home loan. I’ll have to go get a corporate job or we’ll have to sell $1.5 Million in stock to purchase the home in cash.
Would we buy the rental? I hate that it doesn’t have much of a yard and the 3rd bed and bath are upstairs. Also, the community is designed as single standing homes but the lots are very small - 2 homes to a typical California lot. Most home share a driveway with 2-3 other homes. Other than that, the home is terrific, the location is convenient and everyone in the community is so nice. It would be nice to become an owner now instead of 16 months later, as the rent is $6200 / month. However, I think the price has to be a really good deal for us to proceed as I believe housing prices have to come down eventually. I’ve seen the run-up from early 90’s till now to see how everything that goes up, eventually goes down.
I am the last person to have expertise on real estate. If you think I should buy, how much of a discount do you think is reasonable given the reduced buyers pool? I really would appreciate others’ perspective, tips, heads ups, and wisdom on this. Thank you BH community. I’ve learned so much from you already.
His realtor asked us if we are interested in purchasing the home, else he’ll put it on the market. I understand the buyer pool will be smaller as they can’t kick us out and will have to take on the lease and be a landlord for 16 more months before they can move in. Here’s another reason the buyer pool is further reduced: it’s in a beautiful 55+ Community. One of the owners has to be 55+ and no kids are allowed to live in the property.
The home was built in 2017 and the owner remodeled it after he purchased (Jan 2024). He put in beautiful vinyl flooring that looks like wood, painted the entire home, replaced all countertops and light fixtures and modernized the kitchen and bathrooms (he changed the cabinet doors and pulls to be more modern). He put in a more modern shower and beautiful white and gold upscale GE Cafe kitchen appliances.
So DH and I have been enjoying the lovely upgrades as renters as well as the miles and miles of trails surrounding the neighborhood.
Homeowner is requesting $1.8M. He purchased it for $1.6M in January and Zillow appraises it as $1.66M now (June 2024). We did not plan on purchasing a home until the end of our lease (October 2025), expecting real estate prices and loan rates to go down by then. We moved from Austin Tx in late 2022 and are getting to know SoCal. Because we work for ourselves as ERP consultants (S1 Corp), banks will not lend us a home loan. I’ll have to go get a corporate job or we’ll have to sell $1.5 Million in stock to purchase the home in cash.
Would we buy the rental? I hate that it doesn’t have much of a yard and the 3rd bed and bath are upstairs. Also, the community is designed as single standing homes but the lots are very small - 2 homes to a typical California lot. Most home share a driveway with 2-3 other homes. Other than that, the home is terrific, the location is convenient and everyone in the community is so nice. It would be nice to become an owner now instead of 16 months later, as the rent is $6200 / month. However, I think the price has to be a really good deal for us to proceed as I believe housing prices have to come down eventually. I’ve seen the run-up from early 90’s till now to see how everything that goes up, eventually goes down.
I am the last person to have expertise on real estate. If you think I should buy, how much of a discount do you think is reasonable given the reduced buyers pool? I really would appreciate others’ perspective, tips, heads ups, and wisdom on this. Thank you BH community. I’ve learned so much from you already.
Statistics: Posted by optimize_daily — Thu Jun 13, 2024 2:08 pm — Replies 5 — Views 598
