Too small and Not very nice for the Price

[hkakatsakis]

My fiancee and I are preparing to purchase a condo in Los Angeles. It's a studio, 371 sqf for 240k. We love the neighborhood and like the idea of living in a small place to gain more freedom in the future.

That being said, we have until early next week to commit or not and we're on the fence.

I'm leaning towards not, but there are reasons to go ahead and do it, so I am reaching out to the humble community of MMM for advice.

Pros: We love the neighborhood. It's only a couple blocks away from mass transit as well as both of our banks and our gym. It has a lot of restaurants and coffee shops too.
It has a nice big balcony that gets lots of sun.
It will have short term convenience since my fiancee will be needing the metro and location convenience for her new job starting in the late summer, and the place I am now is not nearly as convenient.
The monthly mortgage payment should be less than I'm paying now for rent.
If we wait prices may continue to go up.
Interest rates may go up.

Cons: It's small for the amount of money we are paying. If it were under 200K it would be a no brainer, but we could get a much nicer/bigger place for about 60-80k more.
I am concerned with the size in the long run, and whether after several years of living there we will start to feel stir crazy. Even a hundred sq foot more would make a difference.
The floor is warped, though solid and not needing repair, and the bathroom isn't that nice. The building isn't that great either. So, again for the price we're getting a place that's on the eh side of optimal.
There is a shanty on the opposite corner. I have no problem with homeless, I wish people didn't have to live that way, but I don't believe they are an eye sore or anything, but they are on the way to and from the metro. My concern is when my fiancee takes the metro and it's dark, she will be less than safe.
My fiancee has a high stress job right now, and the process of making an offer and going through the steps of getting the place has been a strain. We don't want to make a decision solely based on our triggers, but it's been tough and I wonder if making this commitment while our work isn't as stressful would help.
We would be able to put more into savings before putting down a large down payment.
Not sure how the market will go, but prices could go down.

So there you have it. Anyone's gut, or experienced input/wisdom/advice would be greatly appreciated.

Thanks.

[Dave1442397]

Whether you can live in the small space is really up to you, but my concern would be more with the state of the building. You say it's not in great shape - any idea what kind of maintenance it needs? Remember, if the condo association has to deal with a major repair, there could be an assessment.

My MIL is dealing with that right now. She lives in an old building, and monthly maintenance charges keep creeping up. There was an extra $8000 assessment this year because of structural repairs. That's always my concern with condos. You know what your mortgage will cost, but maintenance and assessment fees can be onerous.

[lizzzi]

I agree with Dave. Also the fact that you are leaning toward "not" says it all. Go with your gut. Don't try to talk yourself into something you don't really want.  I don't like the idea of walking past the "shanty" in the dark back and forth to the Metro.

[LDoon]

Don't purchase anything that makes you go "eh."  Better to wait and find something you enjoy living in.