Originally Posted by hookul
Ok, I agree about the taxes part but I would assume at that income level they are not that dramatic.
When I was only pulling $1100 a check? I was coming home with $980 after taxes.. I dont feel like trying to figure out the math for $10 an hour..
And you are also assuming that wherever he works will allow him to work 60 hours a week for 5 years straight... I dont know too many bosses who will allow those type of hours for too long.. Cant say it is impossible, but it is not probable
If you live in a room for $500 dollars a month (utilities included) that would seem cheap, but if you do the math, it isnt.. A room? $500 a month? Whoever is renting you that room is making a killing..
but anyway, lets say you get the room you pay $500 a month and you pay whatever your transportation costs would be for work and back.. whether gas up or take public trans, its gonna at least cost you $40 a week (at the very least). you have to go extremely cheap on your phone and no entertainment (maybe you can have cable or internet, but definitely not both...especially not if comcast is your carrier).
About the "red flags popping up" I don't agree at all. I mentioned that this would be a guy who then for 5 years straight paid and invested at his local bank over 1000US every month. Why should anyone become supsicious of this?
there wouldnt be any suspicion if you work above board and pay your taxes and keep a pristine credit rating... But you still would have alot of trouble getting a bank to approve a loan for for you.. Your income is simply too low.
You could try and and save up 80K and buy the house outright, but that is kind of unrealistic because your plan would have to be flawless with no accounting for any unforseen issues that will incur further costs.
If you keep short term investments, you could stay on top of your money enough to earn something, but it wouldnt be too much. Long term investments could help, but they could also screw you out of better rates should they change you would be already locked in.
Like I said, it is possible, but it would very tough and not really practical..
It would be much easier to get yourself a spouse and combine your income. Then a bank would be more inclined to give you a mortgage and you might even be able to afford something better than a 80K home (which around here amounts to basically a row home in one of the worst neighborhoods the city has to offer)
but its not impossible