Looking at buying first home with unique circumstances, asking for advice and confirmation on my research and budgeting.

Me and my wife are currently renting an apartment with plans to buy a house in the future, but what seems like a great opportunity was just put in front of us. My wife's parents are renovating and then planning on selling their second home, and told us that they would be willing to sell it to us at a lower price then what it is worth. I was wanting to wait a couple years before looking to give us the time to save for a down payment, but this seems like a really good deal.

Our current apartment is a 2 bed/2 bath with no other amenities (i.e pool, covered parking, common areas, or provided internet). We pay $785 a month for rent currently, which has increased every year from the $725 we started at 2 years ago. New renters in our same complex are starting at $900, so I know that our rent will continue to increase to at least that amount over the coming years. The house is a 3 bed/2 bath with a 2.5 car garage and a yard in a nice neighborhood. The Zillow Zestimate is at 176k. The in-laws were told by their realtor that they could easily get 180k for the house when it is finished. They told us they would be willing to sell to us for 160k.

So here is my personal numbers and what I have gathered from my research and my planning:

- Our combined pre tax income last year was $58k, which put us right in the guideline of the house costing less than 3x annual income.

- Our only outstanding debt is about $13k on a car loan.

- Credit score is 760.

- With the home hopefully getting appraised around 180k, we could use a "gift of equity" to use that 20k towards closing costs and down payment. ($5k closing costs according to calculator / remaining $15k towards down payment) leaving loan amount of 145k.

- Multiple mortgage calculators put our monthly housing costs at $1040 (principle/taxes/home insurance/PMI).

- While my wife works a set amount of hours at her job, my hours can vary. At minimum, our monthly income is $3300, our average is $3700, and with me getting full hours it is $4000. All bills and expenses monthly come out to $1715. Leaving us with $1585/1985/2285 for house payment and utilities.

- They let us know that the AC unit is 14yrs old and will need replacing soon.

Does this seem like a somewhat good deal? I am afraid of not jumping on this and my rent increasing to being basically the same as the house. Median home sale price in the area is $247k, and I am afraid of house prices just continuing to increase and me never being able to afford. Thank you for your help and advice.

submitted by /u/lookingripe
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/ga1b9v/looking_at_buying_first_home_with_unique/