I\'m thinking about buying a condo.
 

I am leaving my current apartment in roughly 1 month because my landlord who moved to Manhattan misses it here (Providence, RI) and is moving back and taking my apartment.

I am a moderately successful online poker pro. I'm on pace to win a little more than $100k this year (made $49k last year). My biggest fault as a poker player is work ethic, but if I really buckled down I think it would be quite reasonable for me to tack on another $40,000 or so in winnings this year, making me win $140k this year.

My bankroll is currently about $60,000. I paid all of my taxes last year. Pretty much all bills I have paid have been under someone else's name in a shared living arrangement. With no job and not much history of paying serious bills, I'm wondering:

A) Will it be possible for me to buy a ~$300,000 condo? All I have to prove that I am financially secure is my taxes from last year and.......my decent amount of liquid cash. The website for the condos says all you need is 3% of the cost of the condo. I am guessing this assumes you have excellent credit?

B) Even if this IS possible (which I'm not sure of) is it a bad idea? I am pretty certain that I will be able to make at least $100,000 next year (but realistically if the landscape of poker doesn't change much, I will probably make $200,000ish). Should I perhaps wait a few months (I could definitely rent a cheap apartment or even stay with my mom for a little while) and wait till I have maybe $100,000 in liquid cash before going after this condo?

Re: I\'m thinking about buying a condo.
 

Banks don't love people that are self-employed. But they do love people that have a large chunk of liquid assets. As to whether you can get a loan right now I dont' know. I suspect that if you've got 10% to put down, another $60k in the bank, decent credit, and a high income, you shouldn't have too much of a problem.

As to whether you SHOULD buy a condo right now, I dont' know. It depends a lot on your local market.

Re: I\'m thinking about buying a condo.
 

My wife went to Brown, and we live right near there now... and I'd *never* buy anything here right now if I were you.

I'd definitely wait another year and use that time to try to build your credit and build your assets a bit, as it's a *very* tough climate to get a mortgage in right now (especially if you're a young online-poker pro).

Not to mention, I think just about everyone thinks that prices have more downward space left in them (especially on the East Side, or in the nicer areas).

Where are you thinking of living?

Re: I\'m thinking about buying a condo.
 

Without something like 75k down, or comitting mortgage fraud, you are going to have a really tough time getting a loan. You should probably wait anyway until you can get better financing (the prices may come down some, too) and check it out in a year.

Re: I\'m thinking about buying a condo.
 

Good stuff guys. Guess I'll either win the Foxwoods WPT this November, or reconsider again in a year.

Now I just gotta find a decent little apartment to rent for a year.

Re: I\'m thinking about buying a condo.
 

I have only reported for 1 year as well and you need 2 years for your income to really matter as far as mtg application goes. On a NO DOC loan with a little more than 700 credit score, and over $80k in liquid cash (NOT IN POKER ACCOUNTS), I still have to put down 25%. That might help you. This is as recent as three weeks.

Re: I\'m thinking about buying a condo.
 

OP- i think you should buy a condo as soon as possible. If that means 25% down and 50k inthe bank, then so be bit. Just dont try and time the market - thats really a losers game. Also, dont forget that you are paying rent, losing appreciation and the tax advantages if you dont own a home.

Re: I\'m thinking about buying a condo.
 

This recent thread really gets into the rent vs. buy discussion...

http://forumserver.twoplustwo.com/showfl...e=0&fpart=1

Re: I\'m thinking about buying a condo.
 

[ QUOTE ]
OP- i think you should buy a condo as soon as possible. If that means 25% down and 50k inthe bank, then so be bit. Just dont try and time the market - thats really a losers game. Also, dont forget that you are paying rent, losing appreciation and the tax advantages if you dont own a home.

[/ QUOTE ]

This is really bad. Buying v renting is a math problem and should be approached as such. Comments like this are just as ridiculous as broad based "THE MARKET IS GOING DOWN ZOMG. ALL ARE CORRELATED. I M RETARDED."

Re: I\'m thinking about buying a condo.
 

[ QUOTE ]
[ QUOTE ]
OP- i think you should buy a condo as soon as possible. If that means 25% down and 50k inthe bank, then so be bit. Just dont try and time the market - thats really a losers game. Also, dont forget that you are paying rent, losing appreciation and the tax advantages if you dont own a home.

[/ QUOTE ]

This is really bad. Buying v renting is a math problem and should be approached as such. Comments like this are just as ridiculous as broad based "THE MARKET IS GOING DOWN ZOMG. ALL ARE CORRELATED. I M RETARDED."

[/ QUOTE ]

Pretty sure that was a level.

J

Re: I\'m thinking about buying a condo.
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
OP- i think you should buy a condo as soon as possible. If that means 25% down and 50k inthe bank, then so be bit. Just dont try and time the market - thats really a losers game. Also, dont forget that you are paying rent, losing appreciation and the tax advantages if you dont own a home.

[/ QUOTE ]

This is really bad. Buying v renting is a math problem and should be approached as such. Comments like this are just as ridiculous as broad based "THE MARKET IS GOING DOWN ZOMG. ALL ARE CORRELATED. I M RETARDED."

[/ QUOTE ]

Pretty sure that was a level.

J

[/ QUOTE ]

Would you like to respond to how two markets within 50 miles have not have a correlated rise or decline in prices since they have nothing in common with one another? Or would you like to continue to back the idea that there is a national housing market and whichever direction it goes, the world will move in sync? Don't worry. Feel free to make up a ridiculous straw man argument belittling the entire answer to try to make yourself feel better.

Re: I\'m thinking about buying a condo.
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
OP- i think you should buy a condo as soon as possible. If that means 25% down and 50k inthe bank, then so be bit. Just dont try and time the market - thats really a losers game. Also, dont forget that you are paying rent, losing appreciation and the tax advantages if you dont own a home.

[/ QUOTE ]

This is really bad. Buying v renting is a math problem and should be approached as such. Comments like this are just as ridiculous as broad based "THE MARKET IS GOING DOWN ZOMG. ALL ARE CORRELATED. I M RETARDED."

[/ QUOTE ]

Pretty sure that was a level.

J

[/ QUOTE ]

Would you like to respond to how two markets within 50 miles have not have a correlated rise or decline in prices since they have nothing in common with one another? Or would you like to continue to back the idea that there is a national housing market and whichever direction it goes, the world will move in sync? Don't worry. Feel free to make up a ridiculous straw man argument belittling the entire answer to try to make yourself feel better.

[/ QUOTE ]

Well, I let it go in the other thread because arguing with you is like arguing with a wall but feel free to back up this direct quote from you:

[ QUOTE ]

Some markets have been almost completely flat with normal 1-3% appreciation over the last decade, while other places have boomed. Frequently these places are within 50 miles of each other.


[/ QUOTE ]

I'm still not holding my breath even though this time you might have an example that involves more than 700 people and no private resort towns.

As I said before I'm sure there are rare examples but the frequently constraint is the real killer. To prove the statement I expect frequently to be justified.

J

Re: I\'m thinking about buying a condo.
 

So, I'm not sure what you are exactly saying. What I took from the other thread is that he should be looking at whatever national trend is going on and base his decision on that. My opinion is that he should instead look at this local area and other factors when forecasting appreciation etc. From there the math is relatively mundane to decide if he needs to rent or buy. The forecasting is a relatively minor point and if he wants to get fancy he can develop different forecasts for different circumstances and go crazy.

But why he would really look into national trends elude me. How does a national forecast have better predictive value than a local forecast?

Re: I\'m thinking about buying a condo.
 

[ QUOTE ]
So, I'm not sure what you are exactly saying.


[/ QUOTE ]

That is clear.

[ QUOTE ]

What I took from the other thread is that he should be looking at whatever national trend is going on and base his decision on that.


[/ QUOTE ]

You read poorly. National, when it involves aspects such as credit crunches should be seriously considered. The fact that prime jumbos are at retarded premiums will impact my decision to buy in NYC as well as LA.

[ QUOTE ]

My opinion is that he should instead look at this local area and other factors when forecasting appreciation etc.


[/ QUOTE ]

The answer is both. To look at one without the other is silly. However, to focus all attention away from the national (and global) towards the local is a current NAR talking point so I understand your meaning.

[ QUOTE ]

From there the math is relatively mundane to decide if he needs to rent or buy. The forecasting is a relatively minor point and if he wants to get fancy he can develop different forecasts for different circumstances and go crazy.


[/ QUOTE ]

I'm not sure you can call any RE related forecast mundane and doing so highlights your lack of knowledge.

[ QUOTE ]

But why he would really look into national trends elude me. How does a national forecast have better predictive value than a local forecast?

[/ QUOTE ]

Strawman yo? Ever care to actually quote a post with the argument you claim exists?

Hint, I'm pretty sure you just made a bunch of [censored] up. Oh and I've stopped holding my breath.

J

Re: I\'m thinking about buying a condo.
 

J,

Between your scintillating wit and random derisive comments I think I'm finally understanding what you are attempting to say.

I will address one aspect. You incorrectly mix two statements. The decision to rent or buy when you already have a forecast is very mundane. Its a simple math problem you can solve with a HS education. The forecast you may arrive at or get from someone else is so unreliable that it shouldn't be the primary reason that you decide to rent or buy. To say that I called RE forecasting mundane is typical of your straw man arguments. Here you created a fake argument, ripped it apart. Obv you are correct, and if I said that it would highlight my lack of knowledge. But where did I say that RE forecasting was mundane?

Re: I\'m thinking about buying a condo.
 

[ QUOTE ]
J,

Between your scintillating wit and random derisive comments


[/ QUOTE ]

Thank you.

[ QUOTE ]

I think I'm finally understanding what you are attempting to say.


[/ QUOTE ]

No you don't. Start by quoting and responding, it's really not hard and simplifies things.

[ QUOTE ]

I will dodge all factual claims and nitpick something I just made up


[/ QUOTE ]

[ QUOTE ]

You incorrectly mix two statements.


[/ QUOTE ]

Which two. FYI, this is where quotes are valuable, there are these ubb codes you see...

[ QUOTE ]

The decision to rent or buy when you already have a forecast is very mundane. Its a simple math problem you can solve with a HS education. The forecast you may arrive at or get from someone else is so unreliable that it shouldn't be the primary reason that you decide to rent or buy. To say that I called RE forecasting mundane is typical of your straw man arguments. Here you created a fake argument, ripped it apart. Obv you are correct, and if I said that it would highlight my lack of knowledge. But where did I say that RE forecasting was mundane?

[/ QUOTE ]

Here was your post:

[ QUOTE ]

So, I'm not sure what you are exactly saying. What I took from the other thread is that he should be looking at whatever national trend is going on and base his decision on that. My opinion is that he should instead look at this local area and other factors when forecasting appreciation etc. From there the math is relatively mundane to decide if he needs to rent or buy. The forecasting is a relatively minor point and if he wants to get fancy he can develop different forecasts for different circumstances and go crazy.


[/ QUOTE ]

The math is only mundane if the calculation of the underlying variables is mundane. This is basic algebra; no fancy college math.

J

Re: I\'m thinking about buying a condo.
 

I live in the twilight zone. GG. Sickest level yet.

Re: I\'m thinking about buying a condo.
 

This is actually really entertaining, watching you guys bicker back and forth. "Straw man argument!" "No, support your claims!" "No, math is easy!" "Whatever, I like to use the quote feature of this forum! UBBCode rocks!"

Re: I\'m thinking about buying a condo.
 

[ QUOTE ]
I have only reported for 1 year as well and you need 2 years for your income to really matter as far as mtg application goes. On a NO DOC loan with a little more than 700 credit score, and over $80k in liquid cash (NOT IN POKER ACCOUNTS), I still have to put down 25%. That might help you. This is as recent as three weeks.

[/ QUOTE ]

Yeah, in my experience this is typical. I'm not a poker pro, but I'm self-employed, and in the best of times we could get a NO DOC loan with 20% down and about $30k liquid. Plus you PAY for no doc loans in higher interest rates. Something to consider.

Re: I\'m thinking about buying a condo.
 

Jaydub and Thremp,

I've been keeping abreast of the ongoing argument that you have had. I'm a bit confused about the POINT of the conversation though. It seems to me like the debate has degenerated into a dick swingin competition. Maybe we could have all just put our dicks away?

Re: I\'m thinking about buying a condo.
 

[ QUOTE ]
Jaydub and Thremp,

I've been keeping abreast of the ongoing argument that you have had. I'm a bit confused about the POINT of the conversation though. It seems to me like the debate has degenerated into a dick swingin competition. Maybe we could have all just put our dicks away?

[/ QUOTE ]

You have
thremp: avatar showing off biceps
jaydub: loc: drunken jackass

What do you expect when these two run into each other? Dicks flying around

Re: I\'m thinking about buying a condo.
 

[ QUOTE ]
Jaydub and Thremp,

I've been keeping abreast of the ongoing argument that you have had. I'm a bit confused about the POINT of the conversation though. It seems to me like the debate has degenerated into a dick swingin competition. Maybe we could have all just put our dicks away?

[/ QUOTE ]

Spex,

Originally I thought it was about the validity of this statement:

[ QUOTE ]

Some markets have been almost completely flat with normal 1-3% appreciation over the last decade, while other places have boomed. Frequently these places are within 50 miles of each other.


[/ QUOTE ]

But then I realized it was about banging my head against a wall and stopped engaging.

J

Re: I\'m thinking about buying a condo.
 

[ QUOTE ]
[ QUOTE ]
Jaydub and Thremp,

I've been keeping abreast of the ongoing argument that you have had. I'm a bit confused about the POINT of the conversation though. It seems to me like the debate has degenerated into a dick swingin competition. Maybe we could have all just put our dicks away?

[/ QUOTE ]

Spex,

Originally I thought it was about the validity of this statement:

[ QUOTE ]

Some markets have been almost completely flat with normal 1-3% appreciation over the last decade, while other places have boomed. Frequently these places are within 50 miles of each other.


[/ QUOTE ]

But then I realized it was about banging my head against a wall and stopped engaging.

J

[/ QUOTE ]

Yeah, I know its perfectly true. Perhaps you can attack it like you did my other statement. Here let me help you mix the words around.

[ QUOTE ]
Some 3% decades have boomed places last frequently.

[/ QUOTE ]

That seems about as accurate of your quote of me saying "mundane forecasts". GL.