Answer by Ron Escobar - Local Expert

It really depends on how much do you feel you can actually pay every month and where you want to live. I have had clients that can afford a $4 million home, but they are insistent in trying to by a $5 million home... the exact same way I have clients that can afford a $250K home, but they want to only consider $270K properties... there is something within our society that encourages living beyond our means... be careful not to get caught up in that trap... remember lenders, and brokers make commission and the higher the house we sell you, the more money we make... but you have to live with it... with that significant amounf of down-payment I have client right now that we are looking for a duplex in West LA that needs modest repairs, so she can get a good deal... her mortrgage is only going to be around $100K (less than $1,200 a month and she will have rental income... I would say with your income you would qualify for about $2,600 a month payment, but do you really want to pay that much money every month?