Rental Market in Irvine

O

OC_relocation

Member
What you experts see future of rental market in Irvine. It seems that at this time, there is not enough inventory and homes are moving quickly at very good rent.

Colleague of mine just moved in irvine, he had to put several applications at multiple homes before he finally got accepted. He has very decent job with very good salary and credit history.

 
OC_relocation said:
What you experts see future of rental market in Irvine. It seems that at this time, there is not enough inventory and homes are moving quickly at very good rent.

Colleague of mine just moved in irvine, he had to put several applications at multiple homes before he finally got accepted. He has very decent job with very good salary and credit history.
Click to expand...

I had a rental listing about a month ago...got 8 applications in 5 days and the home ended up renting for $100 above the asking rent amount.  Pretty crazy.  The rental market will continue to be strong with good employment as a backdrop.

 
There isn't a shortage of renters in Irvine due to all the businesses (large and small) locally and the large student population from UC Irvine.

We had no problems renting out our home but the majority of applicants were usually a group of college students who can be bad (our first set of renters) or good (our last set of renters).
 
USCTrojanCPA said:
OC_relocation said:
What you experts see future of rental market in Irvine. It seems that at this time, there is not enough inventory and homes are moving quickly at very good rent.

Colleague of mine just moved in irvine, he had to put several applications at multiple homes before he finally got accepted. He has very decent job with very good salary and credit history.
Click to expand...

I had a rental listing about a month ago...got 8 applications in 5 days and the home ended up renting for $100 above the asking rent amount.  Pretty crazy.  The rental market will continue to be strong with good employment as a backdrop.
Click to expand...

At what price point does the rental market narrow?
 
Not sure when the price point narrows, but we rented out our home in Orchard Hills for almost $3500 per month and it took 1 day to get a good family in there
 
Marty said:
Not sure when the price point narrows, but we rented out our home in Orchard Hills for almost $3500 per month and it took 1 day to get a good family in there
Click to expand...

Orchard Hills!!! Baller investor.  How many bedrooms?
 
It's probably worth adding the type of rental property to this discussion.  Irvine Company has a load of available apts. so you will be directly competing against them on some products (ie. 1/1, 2/2 properties).
 
Wow, a rental home in OH.  That is one serious high end rental property.

My biggest mistake in my entire real estate investing career is purchasing a luxury home as a my rental property for $546k back in 2006. I had leased it out for $3000 for  7 years to the same corporate re-lo executive tenant. Had my first vacancy in 2014 which lasted about 3 months (felt like forever as I had lost between $7800 - $9000 in rent).

I secured a 2 year lease with my new tenant for $2600 and they renewed for 2 more years in 2016 for $2700. My Gross Cap on this rookie investor mistake property is 5.9% which in my books is a grade of an "F". In 2018, I am looking to 1031 exchange into 3-4 smaller SFRs in the 9 or 10 school zones to make that capital work much harder for me with much better Gross Cap closer to a 9-10.

Care to share how much you put down on the property and how much you are cash flowing on OH rental property?

Marty said:
Not sure when the price point narrows, but we rented out our home in Orchard Hills for almost $3500 per month and it took 1 day to get a good family in there
Click to expand...
 
zinc said:
Where do you guys post your rental ads?
Click to expand...

I've had success in the past posting in Zillow. THey have a free postlets I think link that posts it on multiple sites.  Surprisingly found my last *great* tenant from craigslist
 
bones said:
USCTrojanCPA said:
OC_relocation said:
What you experts see future of rental market in Irvine. It seems that at this time, there is not enough inventory and homes are moving quickly at very good rent.

Colleague of mine just moved in irvine, he had to put several applications at multiple homes before he finally got accepted. He has very decent job with very good salary and credit history.
Click to expand...

I had a rental listing about a month ago...got 8 applications in 5 days and the home ended up renting for $100 above the asking rent amount.  Pretty crazy.  The rental market will continue to be strong with good employment as a backdrop.
Click to expand...

At what price point does the rental market narrow?
Click to expand...

I think the rental market begins to thin out a bit once you get over $4,000/mo for rent.
 
woodburyowner said:
It's probably worth adding the type of rental property to this discussion.  Irvine Company has a load of available apts. so you will be directly competing against them on some products (ie. 1/1, 2/2 properties).
Click to expand...

Yes, there's a lot of apartments for renters to pick from in the 1-2 bedrooms...not as many rental units that are 3+ bedroom out there.
 
woodburyowner said:
It's probably worth adding the type of rental property to this discussion.  Irvine Company has a load of available apts. so you will be directly competing against them on some products (ie. 1/1, 2/2 properties).
Click to expand...

Yeah, it's a 3 bed / 2.5 bath in Vista Scena.  I have MLS access and found the tenant that way.  I did post on Craigslist with no bites at all.  I decided to go with a 3 BD because of the supply of 2 bds from TIC just down the road.
 
Panda said:
Wow, a rental home in OH.  That is one serious high end rental property.

My biggest mistake in my entire real estate investing career is purchasing a luxury home as a my rental property for $546k back in 2006. I had leased it out for $3000 for  7 years to the same corporate re-lo executive tenant. Had my first vacancy in 2014 which lasted about 3 months (felt like forever as I had lost between $7800 - $9000 in rent).

I secured a 2 year lease with my new tenant for $2600 and they renewed for 2 more years in 2016 for $2700. My Gross Cap on this rookie investor mistake property is 5.9% which in my books is a grade of an "F". In 2018, I am looking to 1031 exchange into 3-4 smaller SFRs in the 9 or 10 school zones to make that capital work much harder for me with much better Gross Cap closer to a 9-10.

Care to share how much you put down on the property and how much you are cash flowing on OH rental property?

Marty said:
Not sure when the price point narrows, but we rented out our home in Orchard Hills for almost $3500 per month and it took 1 day to get a good family in there
Click to expand...
Click to expand...

I am sorry to hear that Panda and i am no mathematician, but the numbers look way off from a mortgage standpoint, you could have increased the rents yearly + if its a SFR, i think it might have rented atleast above 3k
 
USCTrojanCPA said:
OC_relocation said:
What you experts see future of rental market in Irvine. It seems that at this time, there is not enough inventory and homes are moving quickly at very good rent.

Colleague of mine just moved in irvine, he had to put several applications at multiple homes before he finally got accepted. He has very decent job with very good salary and credit history.
Click to expand...

I had a rental listing about a month ago...got 8 applications in 5 days and the home ended up renting for $100 above the asking rent amount.  Pretty crazy.  The rental market will continue to be strong with good employment as a backdrop.
Click to expand...

Ahh man...i would rather have you take my 5% than waiting to get my condo rented out in 2.5 months in irvine...wow i feel like a looser right now, having lost all that money :(

However, realistically, the unit i bought is

1. Multi-floor (3 floor condo)
2. In Portola Springs
3. Tandem Garage

So i wouldn't say, i am competing with SFR or people who can live within 0.2 miles and walk to Woodbury, but still its exhausting and frustrating to have mine rented out by my agent in 2.5 months
 
dream16 said:
USCTrojanCPA said:
OC_relocation said:
What you experts see future of rental market in Irvine. It seems that at this time, there is not enough inventory and homes are moving quickly at very good rent.

Colleague of mine just moved in irvine, he had to put several applications at multiple homes before he finally got accepted. He has very decent job with very good salary and credit history.
Click to expand...

I had a rental listing about a month ago...got 8 applications in 5 days and the home ended up renting for $100 above the asking rent amount.  Pretty crazy.  The rental market will continue to be strong with good employment as a backdrop.
Click to expand...

Ahh man...i would rather have you take my 5% than waiting to get my condo rented out in 2.5 months in irvine...wow i feel like a looser right now, having lost all that money :(

However, realistically, the unit i bought is

1. Multi-floor (3 floor condo)
2. In Portola Springs
3. Tandem Garage

So i wouldn't say, i am competing with SFR or people who can live within 0.2 miles and walk to Woodbury, but still its exhausting and frustrating to have mine rented out by my agent in 2.5 months
Click to expand...

The rental market is very price elastic meaning that being priced just $100 over market will prevent you from renting your property out quickly.  Things like having 3-floors and a tandem garage also reduce your renter pool. 
 
True

I had my agent put it at 100 more & it ended up renting for 200 less haha
USCTrojanCPA said:
dream16 said:
USCTrojanCPA said:
OC_relocation said:
What you experts see future of rental market in Irvine. It seems that at this time, there is not enough inventory and homes are moving quickly at very good rent.

Colleague of mine just moved in irvine, he had to put several applications at multiple homes before he finally got accepted. He has very decent job with very good salary and credit history.
Click to expand...

I had a rental listing about a month ago...got 8 applications in 5 days and the home ended up renting for $100 above the asking rent amount.  Pretty crazy.  The rental market will continue to be strong with good employment as a backdrop.
Click to expand...

Ahh man...i would rather have you take my 5% than waiting to get my condo rented out in 2.5 months in irvine...wow i feel like a looser right now, having lost all that money :(

However, realistically, the unit i bought is

1. Multi-floor (3 floor condo)
2. In Portola Springs
3. Tandem Garage

So i wouldn't say, i am competing with SFR or people who can live within 0.2 miles and walk to Woodbury, but still its exhausting and frustrating to have mine rented out by my agent in 2.5 months
Click to expand...

The rental market is very price elastic meaning that being priced just $100 over market will prevent you from renting your property out quickly.  Things like having 3-floors and a tandem garage also reduce your renter pool.
Click to expand...
 
Dream, perhaps $3000 rent moves very quickly in Irvine, but not in my area, unless the home is situated in a private golf course community, listing a $3000 rental is not the easily to lease. From my experience, the demand for "A" class rental assets are the strongest for rents between $1600 - $2000 in my neck of the woods.

I would be open to share my numbers with you and see how it compares with your Irvine rental. This property is definitely my worst rental out of my entire rental portfolio. I held onto this property for 10 years where my equity did not work very hard for me for the past 10 years. The value of the property is pretty much back to same value I paid for it 10 years ago. I am now up in terms of my equity due to my loan being amortized for 10 years. My HOA is $1000/year and my property tax is about 1.2% ($5800 last year)

I am starting to seriously rethink about financing strategy of refinancing all of my 30 year loans to 15 and 20 years loans on my rentals to accelerate the principal pay down. As I get older, the more I want to simplify life.

dream16 said:
Panda said:
Wow, a rental home in OH.  That is one serious high end rental property.

My biggest mistake in my entire real estate investing career is purchasing a luxury home as a my rental property for $546k back in 2006. I had leased it out for $3000 for  7 years to the same corporate re-lo executive tenant. Had my first vacancy in 2014 which lasted about 3 months (felt like forever as I had lost between $7800 - $9000 in rent).

I secured a 2 year lease with my new tenant for $2600 and they renewed for 2 more years in 2016 for $2700. My Gross Cap on this rookie investor mistake property is 5.9% which in my books is a grade of an "F". In 2018, I am looking to 1031 exchange into 3-4 smaller SFRs in the 9 or 10 school zones to make that capital work much harder for me with much better Gross Cap closer to a 9-10.

Care to share how much you put down on the property and how much you are cash flowing on OH rental property?

Marty said:
Not sure when the price point narrows, but we rented out our home in Orchard Hills for almost $3500 per month and it took 1 day to get a good family in there
Click to expand...
Click to expand...

I am sorry to hear that Panda and i am no mathematician, but the numbers look way off from a mortgage standpoint, you could have increased the rents yearly + if its a SFR, i think it might have rented atleast above 3k
Click to expand...
 
How's the rental market looking in Irvine/Tustin today? It is still healthy with a lot of interest and traffic?
 
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