Can I afford to buy my mother’s house?

My mom want’s to sell me her townhome below market value, but I’m not 100% sure if this is a good idea. She owns the home free and clear (No Mortgage) and has already brought a second house to live in

She wants to sell the home to me for between $225,000 to $250,000. This is A 3/2 townhome in the Tampa area. A comparable unit in her neighborhood just sold for $275,000, however my mother’s house is on the water which may make her price go higher.

I am a full-time 23 y/o Computer Science college student (will graduate in 6 months), with a full-time tech job making $40,000 a year. Or around $3,000 a month. For my expenses I pay :

– $1000 month for Rent/Utilities (My half)

– $400-500 Miscellaneous/Fun

– I have no savings right now

– I have $8500 in Federal student loans that are deferred until 2024. For a 10 year plan I pay $150/mon

– Credit Score 680’s

The rest is either used to pay-off debt or put in my Roth Ira.

I have been doing some research and the mortgage (assuming 250k) would run me $1900-ish a month, including HOA fees, property taxes (she would transfer her homestead exemption to me), Homeowners Insurance, and some utilities. Also, how does a gift of equity work? Would the home price be $300,000 and the equity gift be $50,000 bringing the price to 250k? The research online is a little confusing.

The home has:

– 3 year old new roof

– 3 year old new HVAC system

– 3 year old new appliances

– 5 year old flooring

– Recently had an inspection (less than 1 year ago) in which there were only minor problems

– Would come partially furnished

I currently live with my boyfriend of 3 years, I of course would not put him on the mortgage or anything official, but he would be my roommate and is willing to pay $1000 month for expenses/rent. I also have a friend who would be interested in renting one of the rooms out for $500. I could also rent the 3rd bedroom out for extra income, but I’m not sure on that yet.

My mother (who is a realtor) said she would pay $10,000 for my down payment and cover closing cost. She would also waive realtor fees, although I know we can go through an attorney instead to lower prices as well.

I’m really hung up on this decision. I know this is a great deal but the monthly payment is daunting.

Although, I am a bit comforted that my income will increase after I graduate to at least $55,000.

What do you guys think?

submitted by /u/HeavySigh14
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My mom want’s to sell me her townhome below market value, but I’m not 100% sure if this is a good idea. She owns the home free and clear (No Mortgage) and has already brought a second house to live in She wants to sell the home to me for between $225,000 to $250,000. This is A 3/2 townhome in the Tampa area. A comparable unit in her neighborhood just sold for $275,000, however my mother’s house is on the water which may make her price go higher. I am a full-time 23 y/o Computer Science college student (will graduate in 6 months), with a full-time tech job making $40,000 a year. Or around $3,000 a month. For my expenses I pay : – $1000 month for Rent/Utilities (My half) – $400-500 Miscellaneous/Fun – I have no savings right now – I have $8500 in Federal student loans that are deferred until 2024. For a 10 year plan I pay $150/mon – Credit Score 680’s The rest is either used to pay-off debt or put in my Roth Ira. I have been doing some research and the mortgage (assuming 250k) would run me $1900-ish a month, including HOA fees, property taxes (she would transfer her homestead exemption to me), Homeowners Insurance, and some utilities. Also, how does a gift of equity work? Would the home price be $300,000 and the equity gift be $50,000 bringing the price to 250k? The research online is a little confusing. The home has: – 3 year old new roof – 3 year old new HVAC system – 3 year old new appliances – 5 year old flooring – Recently had an inspection (less than 1 year ago) in which there were only minor problems – Would come partially furnished I currently live with my boyfriend of 3 years, I of course would not put him on the mortgage or anything official, but he would be my roommate and is willing to pay $1000 month for expenses/rent. I also have a friend who would be interested in renting one of the rooms out for $500. I could also rent the 3rd bedroom out for extra income, but I’m not sure on that yet. My mother (who is a realtor) said she would pay $10,000 for my down payment and cover closing cost. She would also waive realtor fees, although I know we can go through an attorney instead to lower prices as well. I’m really hung up on this decision. I know this is a great deal but the monthly payment is daunting. Although, I am a bit comforted that my income will increase after I graduate to at least $55,000. What do you guys think? submitted by /u/HeavySigh14 [link] [comments]

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