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#1
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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? |
#2
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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. |
#3
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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? |
#4
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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.
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#5
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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. |
#6
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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.
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#7
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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.
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#8
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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 |
#9
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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." |
#10
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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. |
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