Austin first-time buyer: is $34,000 enough cash after closing?

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FirstKey

Homeowner
Established
I have to decide soon whether to stay at my limit. The attraction is a 2-bed Austin apartment priced around $885,000; the concern is that only about $34,000 would remain after the deposit and projected closing expenses.

That reserve must still absorb the move, the first mortgage payment, urgent inspection items and any service charges, while furniture can wait. I would like to keep a meaningful amount untouched rather than allocate the whole sum on day one. How would you set the emergency portion after accounting for normal monthly spending, and would a thinner-than-expected inspection report or high building costs be enough reason to target a lower purchase price?
 
I’d keep most of it genuinely untouched: perhaps $20,000 for emergencies, then $4,000 for moving, $5,000 for immediate repairs and $5,000 for furniture. Furniture is the easiest category to delay or reduce. Also make sure the $34,000 is what remains after any prepaid costs and the first mortgage payment, not merely the figure shown for closing day.
 
The missing fact is your normal monthly spending. A $20,000 emergency fund could be comfortable for one buyer and very thin for another. Does the apartment have association or service charges, and are any increases or major building works being discussed? I’d also want the inspection findings and insurance deductible before assigning firm amounts to furniture.
 
I’m less comfortable with that split. On an $885,000 purchase, allocating $10,000 immediately to repairs and furniture leaves little flexibility if two costs arrive together. Unless the inspection identifies urgent work, I’d move with the essentials, keep existing furniture and wait a few months. Buying below your maximum may be worthwhile if it preserves several months of total household expenses.
 
Make three lists after the inspection: safety or damage issues to handle immediately, items that can wait a year, and cosmetic wishes. Then price only the first list plus the move. Separately confirm the first mortgage payment date, recurring building charges and the relevant insurance deductible. Whatever remains after those items can be compared with your target emergency fund; furniture gets the leftovers, not a guaranteed allocation.
 
I agree with delaying furniture, but I wouldn’t assume the whole repair allowance is optional. Inspection findings can affect the decision before closing, while building-level costs may not appear in the unit inspection at all. I’d ask Anna to rerun the numbers using monthly expenses, known recurring charges and one plausible repair bill. If that makes $34,000 feel tight, a lower purchase price answers the question more clearly than fine-tuning the buckets.
 
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