QUICK OFFER HELP: $660,000 Offer in Brentwood, LA

[Conor Murphy]

Here's the deal:  I'm writing this quickly because the deadline for an offer is tomorrow at 5pm. Please bare with the haste.

I am planning on putting an offer out tonight for what seems like a steal. The condo is a two bedroom, 2 bath, in Brentwood, Los Angeles, asking for $620,000, but because counters have already begun I am going to make an offer of $660,000. The condo is in pretty good condition, but I would still want to put about $40,000 of work into it to make it optimal by Brentwood standards (Re-do the kitchen, and spruce up a few other things). 

I have $240,000 saved up, but I'm an actor so my income is never guaranteed and I don't have secure income moving forward. It's all spontaneous. I want to do an interest only loan at 4% with 10% down, with my lender saying that would put my mortgage estimate around $2,000 and the HOA is $315. I also have a non-occupant co-borrower that helped me secure the loan. Currently, the residence is occupied but the tenants are "planning on leaving in August" with a currently rental rate of $2,900.

WHAT DO YOU THINK? I appreciate any and all questions and/or analysis. 

[Ian R.]

@Conor Murphy Please don't take this the wrong way but it appears to me that these are all questions that your agent should be able to answer relatively easily.  Real estate is local so your agent should be your primary counselor and advocate for educating you on how things work in your local market in LA, especially in regards to local tenant laws.  I find it very concerning that it appears that your agent is apparently either unwilling or incapable of performing his fiduciary duties to you.  If I were you, I'd get another agent.

And to answer your initial question, yes, you can cancel your contract within your option period and receive your EMD back. But again, these are basics that your agent should already be talking to you about.

Best of luck