Can I afford this house?

[Anonymous]

Found my dream house in the suburbs. Price $1.351M plus buyer wants me to cover first $30K of anything found on inspection. It’s 90y old and current residents have been there for 40 years. Has about a half acre; part of the house has a separate entrance and can be turned into a 1BR apt to rent for ~$1500/m tops.
My finances:
50 yo single parent one tween
Income $230K
Net worth $3M all in (retirement, brokerage)
529 $60K of projected $120K cost (ex pays rest)
Currently renting

Can I afford this? Take home pay is about $10500/m after deductions. Would mean DP of about $750K then ~$5700/m plus utilities/maintenance.

[Anonymous]

How well can you get by on the $4,800 per month once you pay housing costs?

[Anonymous]

If it’s a 600k mortgage, you should be able to afford it. Why would the payment be 5700?

[Anonymous]

The taxes are $1700/m

[Anonymous]

As a single mom I would not take that on. You will be managing lawn workers, maintenance people constantly. It will be a full time hobby. Frankly as a single mom I would get a really fancy townhouse walkable to coffee and a farmers market near my kids school.

[Anonymous]

I mean technically yes, but you’re putting so much of your savings and salary into a house. And have you considered the ongoing costs for utilities and maintenance? I have about your stats (albeit with less savings) and also a single mom of a tween, and I wouldn’t do it. Plus you are going to be an empty nester too - do you really want to live in the burbs? Don’t you have other things you want to spend your money on, like travel?

[Anonymous]

Don't do it, OP. It's too much of a stretch. On a 90 year old hours it's inevitable you're going to have significant upkeep, if not in the first few years then definitely in the future. I've also walked away from a house I loved and yes, it was hard emotionally but logistically I am SO proud of myself for making sound financial decisions.

-Fellow single mom

[Anonymous]

Appreciating these perspectives. What situation or price do people think would be ideal?

[Anonymous]

Nope, I would not do it.

[Anonymous]

How much are you depending on the one bedroom rental? Have you ever been a landlord? Do you want that headache?

[Anonymous]

Anonymous wrote:If it’s a 600k mortgage, you should be able to afford it. Why would the payment be 5700?

This. Why is your payment so high?

[Anonymous]

Anonymous wrote:

Anonymous wrote:If it’s a 600k mortgage, you should be able to afford it. Why would the payment be 5700?

This. Why is your payment so high?

6.4% interest plus $1700/m property taxes

[Anonymous]

Absolutely not. You're 50 and single. That's too much house, too much work, too much mortgage, and too much taxes.

With $3M, you're in a position to be very, very comfortable between now and in retirement. But not if you go blowing a bunch of money on a house you definitely don't need. And especially not some 90-year-old work pit.

Spend $600k on a small house, or townhouse or something.

[Anonymous]

I just want to make sure I understand: You're DP will be $750K and your monthly would still be $5700?

If I'm reading this correctly, my answer is NO. That is a stretch big time. Our HHI is $430K-$450K depending on bonus. Our monthly all in with taxes etc is $5100, and it's comfortable enough for us that we're not struggling, but our income is $200K above what you posted. I wouldn't be able to sleep at night on a take home of $126K, with $68K annually going to my mortgage. No ma'am , don't do it.

[Anonymous]

This might be better for the finance forum.