Martin Tithonium (tithonium) wrote,
Martin Tithonium

9 Jul '16

Breakfast at Luna Park.

Then met with a mortgage broker. He went over a lot of things, and it turns out I've been /overly pessimistic/ in some of my calculations, which is weird, because I thought I was being overly optimistic. Apparently - based /solely/ on income - we could qualify to buy a house for as much as $1.6M. I thought looking at $950k was a stretch. Now, we could only /just/ afford the actual mortgage payment for that $1.6M, and it's half again what I'm looking to be paying, but it at least points out that we have a lot more flexibility than we thought we did. He didn't have a solid answer on the capital gains issue, since we're not married and he's not sure how that would divide up. For now, I'm just assuming a flat 15% on everything above our original purchase price and hoping that's sufficiently pessimal. Based on all of that, I've put together a spreadsheet showing how much we get out of selling the house for various amounts, and how much we need up front to buy a house at various amounts, and it looks like we'd need to sell somewhere between $680k and $780k to afford houses ranging from $500k to $1M.

The downside of ALL of this, however, is that it's assuming we have slightly better credit scores than we currently do. In other words, we more or less HAVE to sell the house FIRST, pay off our debts, wait for our credit reports to update (~45d) and THEN apply for a loan on a new house.

This complicates things massively. We can /probably/ sell this place with a two month rent-back clause (meaning we rent the house from the buyers for two months while we try to buy a new place), but that could get tight. And if we don't find a place quickly, or can't close on it fast enough, or - gods forbid - the place we want to buy ALSO have a rent-back clause, then we'd have to find a place to rent between when we have to be out of this house and when we can get into the new. And finding a place that a) is big enough we won't kill each other and b) will rent month-to-month from the start and c) will accept two large dogs... that's gonna be tough. and expensive. A cursory search turned up /two/ places within reasonable areas that met the criteria, and both cost half again to twice what we're paying for our mortgage now. That'll hurt more than I'd like. It's not /impossible/, but it sucks.

Anyway, then we went to look at some houses that were open today but not tomorrow. The first was tiiiiny. Not even big enough for the two of us. The second looked GREAT on the redfin listing. It was not so much in person. It could be MADE awesome, but it would require moving some walls around and turning what is basically three units back into two, deleting a kitchen, expanding another kitchen, and replacing a bathroom with a Bathroom. For the price, that's WAY too much work. The third was much better than I was expecting. Great parking situation, WEIRD layout. But we were able to figure out how we could make the layout work for all four of us, and it's cheap enough we could easily afford to do the remodeling work we'd want.

Then we drove thru downtown Edmonds, past a house we'd looked at previously which seems to have been taken off the market, and drove south thru Woodway.. Saw an open house sign and turned in and looked at a very nice $1.3M house on >2 acres with its own creek. I was quite charmed. But, sadly, the layout would make it unworkable for the four of us, and it's too expensive anyway. Which is a pity, because it's got a lot of awesome around it, would be /amazing/ for hosting parties, has a ridiculous amount of parking, and is just wonderful.

Then we went to Fu Man Dumpling house for lunch and came home. Very sore. Very tired.

We need to start packing the house. We can't show it until we get most of the crap we own /out/. If anybody wants to help with that, it'd be greatly appreciated. Especially seeing as neither loree nor I is any good for carrying heavy things anymore. ::/
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