Asking advice for future buying


#1

Hi.

I am really enjoying this forum. I will ask some advice as another opinion.

In 2015, we purchase the brand new home at South San Jose, Lennar community SFH 2165SQ 4 Bed and 2.5 bath, small courtyard, HOA 240(including big swimming pool and community center, gym), 95123, Near Cottle RD and 85.
Closed Target, safeway, brand new Costco.
Also new homes(SFH, but mostly TW) will come near future next to Costco.
Purchased as 880k now based on Redfin 1.1M. But I don’t believe it might be now 1.05.

I am sure you guys easily know or find this place. :slight_smile:

No kid, two income(around 260k), my mortgage payment is 3,200 with 30 years fixed.

Within two years we have plan having a baby.

Commuting: We are doing carpool together. My work in Santa Clara near to central, her work is near to 880, 95131. Commuting is fine so far not bad. 40 min one-way with carpool.

Luckily I have cash 600k on my hands. I want to keep at least 50k after I purchase a new property. I restated as 600k.

I am looking for purchasing this year 2018. Which case is better?

  1. Buy good school zone shitty house SFH, TW or condo and rent out. Then when we have a kid and about to go school, renovated and move it. South San Jose house remain as rental or sell.

My realtor told me even you will be fine buying TW or Condo in the good school zone and rent out. But eventually, we want SFH.

  1. Buy good school zone SFH and move it. Rent south San Jose house.
    I am not sure how much South San Jose SFH will attractive to renter due to long distance commute. Currently 5 elementary will shrink to 3 due to lack of enrolment. Google new campus will affect Willow Glen or San Jose I am not sure in South San Jose.

  2. But several condos for investment, at least two. And when the time is come to buy the family house, sell it South Bay home and move to new house.

Do you have any recommendation?
I am not crazy about Cupertino Schools, But I want to buy in the good school district.
Thanks in advance.


#2

I think most here will say don’t sell your current home, since you don’t need to sell to buy the next home. You should check what your current home would rent for vs. your mortgage. Hopefully, you’re break even or better on monthly cash flow. If you are, then I’d go buy and live in another home now. If you pay today’s prices for a home and rent it out, odds are your monthly cash flow would be pretty negative. I don’t see a point in that. Also, if moving would shorten your commute that’s all the more reason to move now vs. later.


#3

You didn’t say where you/wife worked and how you commute today.


#4

That is exactly I am thinking. Thanks for your comment. I will add more detail info current home.


#5

With the way prices are in the Bay Area I would not throw money into another SFH and see negative cashflow. Use the 700k to buy something that cashflows better outside the bay area. @wuqijun or @Elt1 will have ideas.


#6

Added information. Thanks.


#7

Restated as 600k, not 700k.


#8

Send your kids to private school. save the money. :slight_smile:

Seriously. I have been going back and forth between buying in a school district and paying inflated prices and sending to private school. Per the conversation with wifey last night, we are going to end up in the worst of both worlds (we live in a school district neighborhood), but wifey wants to send the kid to private school.

There has been a general cut back on services and programs offered even in good school districts (e.g. Fremont Mission’s music program is funded and run by the parents!, CUSD has one of the lowest spend per student, etc). The schools are good because the kids are more often then not pushed by the parents.

So it probably makes more sense now to skip the school district and send the kid to a private school. Of course if you want to buy in a school district, go ahead, it helps keep my house price up :slight_smile:


#9

I think buy a new home now and live in it. You should be able to shorten the commute.


#10


#11

Never go with negative cash flow. Plenty of places with 5caps and higher…


#12

Ha! Only one spot is right. BTW thanks for effort!