It seems like you’ve already fell in love with this house. That’s something I often caution against because it can lead to unwise financial decisions. You can get a Cal Vet loan which is good, but if you purchase this property – be prepared to potentially lose a couple hundred thousand dollars in equity over the next few years. Of course, if you love this house and plan to stay in it for 30 years then it may be okay with you, but most people I know have a hard time swallowing the fact that they overpaid by that much.

You said it yourself that “Pomona is rough” so do you really want to live there just to get the MCM architectural style? Do you see yourself living there for a long time? Also, do you have or plan to have kids? Pomona doesn’t exactly have stellar schools.

This property was purchased one year ago on 100% financing with 2 loans ($498,750 and $166,250) and has been on the market for almost 5 months with multiple price reductions totaling $110k. It doesn’t look like it will sell anytime soon. The previous sale before that in 2001 was $235k. At 3% inflation, it would be worth $289k in 2008. At 4% – $309k and at 5% – $330k. That makes the current asking price 36% to 45% over-valued.

There’s no question that this property will lose a big chunk of value over the next few years. The question you have to ask yourself is whether or not you’ll be able to live with “being underwater” for a long time? You obviously love the house, but that doesn’t negate the fact that you’ll be buying an overpriced property. I would advise not buying this house until it gets back closer to fundamental values.

I rent in San Dimas/Pomona. I have so many questions about real estate. I realize that I have to make my own decisions and live with them. However, I am crazy for mid-century modern, and there is a MCM in Pomona right 2,294 squ feet on a 32, 000 sq. ft. lot listed now for 500k; I am interested. We can well afford it on our income. We are first-time buyers. We will get a Cal Vet loan, fixed at the going rate. MCM homes in this price range are few and far between. Pomona is rough, but this home is at:

1660 Entrecolinas Pl, Pomona

and is in a fairly decent area of Pomona. If we could get the price down to 450k, then our monthly outgo for housing would be about 3k. The home is not turnkey, but I have always wanted to fix up a MCM. I am probably being Polllyanna-ish about the whole thing, but I have loved mcm for about 20 years.

So, do we rent at 2k per month and hold out for a cheap MCM to show up on the market [fat chance] or, buy this one for 3k a month? My dh could care less. He would love a big house on a stamp-sized lot with lots of shiny, new appliances. I am the architecture nut.

I do not know anyone besides you who has that ‘voice of reason’ about real estate. You seem to want to genuinely educate and dialogue. This is my first RE post ever in my life.

My friends will all tell me to buy. My dad will say not to buy. My dh will support whatever I want. I need to be able to process this decision in a safe, sane place. Umm…any ideas where I can find a safe, sane place to talk about RE?

Thanks, Leigh Anne