I'm thinking about buying a condo.

Xaston · #1 10-05-2007, 05:14 PM

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?

spex x · #2 10-05-2007, 05:25 PM

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.

SunOfBeach · #3 10-05-2007, 06:46 PM

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?

SossMan · #4 10-05-2007, 07:30 PM

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.

Xaston · #5 10-05-2007, 07:42 PM

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.

foxfox1 · #6 10-05-2007, 11:08 PM

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.

MatthewRyan · #7 10-05-2007, 11:50 PM

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.

thing85 · #8 10-06-2007, 12:25 AM

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

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

Thremp · #9 10-06-2007, 01:26 AM

[ 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."

jaydub · #10 10-06-2007, 01:32 AM

[ 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