No, I’m not talking about Podunk, North Dakota or a special government-financed low-income housing unit. This is a real 900 square foot condo with 2 bedrooms in West Oakland. Now I am not familiar with this particular neighborhood (near 28th and Market), but if it is even somewhat reasonable (i.e. safe, up-and-coming, near transport, etc.), this might be a place for consideration. On the market only 15 days, the price has already dropped from $168,000 to $129,000, which translates to $143/sf. A bargain in today’s market. What do you get? A brightly painted unit, complete with carpet, drapes, and appliances. Being on the ground floor of a renovated 6-unit building, you get a small yard with deck. And while 900 square feet isn’t a whole lotta room, for this price, it’s a good start. And I should think that the cost would outweigh renting.
Breaking it down, at the full price of $129,000, a 20% down payment would be $25,800, leaving a loan balance of $103,200. At 6%, your payment would be about $550 plus insurance ($60) and taxes ($129) and HOA ($130), for a grand total of $869/month. Get a roommate and split it, for a cost of $434.50/month. Even with only 10% down, your payment would be about $939/mo. Worth a look?
NOTE: Yesterday’s post “Oakland Bargain Basement” also contained this property. Alison notes that the previous high sale was $810,000 in June 2006, but I believe that to be for the whole building, which was then turned into individual units.