@Revelate wrote:
@Anonymous wrote:not that you asked... but IMHO that's a lot of mortage for that income. Not saying you won't get a loan, just saying it's a big monthly payment for that income.
It's doable even on smaller income even, all hail itemized deductions when talking that loan size: the numbers get goofy quickly and optimizing one's withholding keeps the cash flow going. That's not an absurd DTI at least, heck Chase et al. were willing to qualify me for 1.1M at 20% down which is a similar payment at 160K income even... yeah I side-eyed it, but if I'd had another 50K let alone 100K in income, could've pulled the trigger pretty easily and had money left over if I wasn't shopping with both hands on other things in life.
Priorities
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Where are you looking at purchasing YDKM?
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In fact I'm conservative in my monthly cash flow estimates since on my paycheck each pay period (every two weeks) I give the governnment a free loan since for Fed and State withholding I give an EXTRA $500 each pay period or extra $1000 a month for taxes but get a bigger refund every April (get about $12-$15k in refund each year on married tax return), so if worse comes to worse, which I don't see it happening, I can stop giving the gov a free loan and not deduct an extra $1000 a month in taxes voluntarily. Anyway we don't plan to stop maxing out retirement accounts nor do I plan to stop giving an extra $1k in taxes a month to the gov (I look at it as forced savings) with the $1M puch price, 10% down loan. I think we can do it and still live comfortably.
Anyway, in regards to where we are purchasing, probably sherman oaks, encino area, homes are around $800k-$900K there and close enough to wife's workplace in west los angeles area. Been looking at studio city but not much at < $1M nor Toluca Lake area, priced out. I was thinking Rancho Palos Verdes at $900K range but it is a little of a drive for wife, but better for me. So generally west side, north west los angeles area. We definitely can afford Burbank, Pasadena, S. pasadena, Glendale Arcadia but don't want to go that far east if we don't have to (though some of wife's co workers do drive from these areas to west LA), again a little of a drive to wife's work in west LA. So anyway for those familair with So cal, and LA, you know trying to buy in the west side or vicinit you need at least a $1M so I'm already priced out certain areas. So Sherman Oaks, Encino is prob. where we will find out $850-$950K sweet spot. Hopefully. So the $1M is just to have extra options and hopefulyl don't need to spend that much.
Sounds like you've done the homework already: commuting from PV/RPV/RHE is about an hour to west LA; I've done the commute to UCLA from there, it's not a whole lot of fun long term... even Culver City with the NFL offices being near the freeway wasn't fantastic. Sadly 1M these days there is a fixer-upper in the truest sense of the word when talking single family home.
I was planning to try to get there with the second home, but going to re-evaluate options when the time comes, like everywhere it's going through changes too. SO/Encino area probably is a good bet from what you describe.
