How to Finance

[John Hanson]

Early next year, I'd like to by a condo, probably in the $140,000 range. I will move in and possibly do a light renovation. I may stay there indefinitely, or I may move out at some point and make it a rental. Condo might be REO or a short sale.

This is my financial situation (what I could apply toward the house):
-$10,000 Cash
-$40,000 401(k)
-$40,000 IRA

My circumstances:
-Finishing a Master's program.
-Have job offer in hand (about $50,000 salary)
-Haven't owned a house for 3.5 years
-Currently Renting month-by-month

I have no idea how to proceed. My ideal situation would be to to get a place under contract and move in now, then secure conventional financing when I start working in January. Perhaps a lease option would work, but might it work in an REO or short-sale situation. (I don't know a lot about lease options, REO, or short sales... only what I've read over the last few months)

How would you proceed? (Thanks for any thoughts you can offer)