Beacon park or Eastwood as future rental

M

Mrsmarketingguy

New member
Hi everyone. As some of you may have seen from another post, we are a first time home buyer in Irvine. Since this is our first home, I have suggested to my SO to buy a cheaper townhome or even a flat. This way we can have more money in our pocket for future investment.

That being said, we recently visited beacon park and find brio and primrose to be very under budget but the mello Roos is supremely high.

The Avalon has less features we desire but mello Roos is lower, as is HOA. But as of right now we are on the waitlist for Petaluma. Petaluma is right at our budget leaving us not much for other investments.

What do you guys think of the future rent ability of beacon park? Will the great parks ever finish and will it be worth the 5k/yr mello Roos (subject to 2% increase/yr)?
Or would Eastwood Petaluma still be a better rental property than primrose or brio despite the 200k more?
 
I think petaluma being a 3 bedroom detatched home within 5 minutes walking distance to EW elementary school is a lock on future rentals.
 
I agree I will be able to rent it out. But I think I'm concerned about just breaking even with my monthly payments since I heard the rental market thins at $4K. I would be making payments at $4300.

Just to throw out that primrose is located right next to beacon park school but I'm not sure if I'd break even either with mello Roos and and HOA calculating to $680 a month.
 
High Mello Roos and HOA will hamper anyone from breaking even on renting their home out later if they only put 20% down.  For 2-3 bedroom attached and detached condos in newer parts of Irvine, you are currently looking at around $2/sf in rent.
 
Mrsmarketingguy said:
I agree I will be able to rent it out. But I think I'm concerned about just breaking even with my monthly payments since I heard the rental market thins at $4K. I would be making payments at $4300.

Just to throw out that primrose is located right next to beacon park school but I'm not sure if I'd break even either with mello Roos and and HOA calculating to $680 a month.
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I would do more research to see how many people are actually getting $4k in rent.  If it's very common, then a $300/month bullet isn't too bad if you really love this house.  Lots of people play the appreciation route so that $300/month might be nothing if it goes up...just remember you have to pay real estate commission for the sell (usually it's at 6% or so... $800k selling at 6% is $48,000 so it would in theory need to appreciate $48k to break even) 

people who can afford $4k in rent usually buy their own.  I would guess it's more close to $3600-3800/month... but I'm not realtor. Ask USCTrojanCPA for more info

 
The sweet spot for rental prices from what I've seen in Irvine/Tustin Ranch is about $2,500 to $3,500 per month.  Once you get over $4,000 in rent I think the renter pool starts to thin out a bit.  Now that doesn't mean that homes at $4,000/mo don't rent out, they do.  There are less supply of those homes as rentals and less renters wanting to pay $4,000+ in rent.
 
Irvine new build in general are terrible as rental due to high taxes and its really hard to break even especially if you also has high mortgage payment.

But between BP and EW, I would pick EW due to lower fixed MR without 2% increase and higher demand.  EW is selling really well right now and what's hot right now probably still going to be hot in the future.


 
Thanks for all the input. I'm guessing that Irvine real estate is more about the appreciation game. This makes the detached condo much more desirable.

But I can't help but be so curious about great park neighborhoods. Sales office was touting it to be a whole new city with museums and sport centers. But I'm a bit skeptical. If it is successful I can imagine an Airbnb would be quite successful if it ends up being like a resort. If they squander the money and never finish it'd be a disaster.

On another note . Would anyone know anything about paying off mello Roos bonds? I read online that people had paid their mello Roos in a lump sum to avoid paying interest but when I asked the sales at beacon park they just kind of laughed. The pay offs mostly happened in San Diego but I haven't heard about it in Irvine.
 
Mrsmarketingguy said:
But I can't help but be so curious about great park neighborhoods. Sales office was touting it to be a whole new city with museums and sport centers. But I'm a bit skeptical. If it is successful I can imagine an Airbnb would be quite successful if it ends up being like a resort. If they squander the money and never finish it'd be a disaster.
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AirBnB (for less than 30 day stay) is against city ordinances unless you live in a business zone. Many HOAs, especially condos have CC&R's against this. You can face escalating fines.
 
nyc to oc said:
Mrsmarketingguy said:
But I can't help but be so curious about great park neighborhoods. Sales office was touting it to be a whole new city with museums and sport centers. But I'm a bit skeptical. If it is successful I can imagine an Airbnb would be quite successful if it ends up being like a resort. If they squander the money and never finish it'd be a disaster.
Click to expand...

AirBnB (for less than 30 day stay) is against city ordinances unless you live in a business zone. Many HOAs, especially condos have CC&R's against this. You can face escalating fines.
Click to expand...

To add to this, Irvine residents are super nosy haha! Neighbors will definitely notice if they see different people every day/if they hear loud noise (why else do people use airbnb except to party it up) and they will report it to the HOA's promptly.  Also if you use a lockbox it'll be tagged fast too, so I wouldn't count it as an airbnb prospect

Next point...on the "museums and sport centers" read up on this website about the struggles they are having on the financings of these projects they have "planned"  Essentially they are rushing every development at speeds to get more MR's to get more money for financing these projects but it's not going as fast as planned.  I would put it at least 3-5 years for any of these "museums and sport centers" to come IMO
 
In terms of a rental, I would choose Eastwood purely for its central location and Northwood High School. Beacon Park will forever have to deal with the negatives of Portola HS being so far away, the jail being closer to the school, and the toxic land rumors.
 
All great points. Seems like the prospects of Eastwood are just plain better.

Was hoping that paying off the mello Roos would help turn a profit off the rental in the long run but I'm not sure where to get info on that. Then I heard they can renew mello Roos after their initial proposed time.

If I could pay off the MR in Eastwood it's one less monthly payment to eat into the rent and later on when I resale I can say my house has no MR, or is this not how it works in Irvine?
 
Mrsmarketingguy said:
All great points. Seems like the prospects of Eastwood are just plain better.

Was hoping that paying off the mello Roos would help turn a profit off the rental in the long run but I'm not sure where to get info on that. Then I heard they can renew mello Roos after their initial proposed time.

If I could pay off the MR in Eastwood it's one less monthly payment to eat into the rent and later on when I resale I can say my house has no MR, or is this not how it works in Irvine?
Click to expand...

I haven't heard anything about being able to payoff mello Roos at one time.  But yes, Mello Roos can be extended after the proposed time.  Essentially, if they feel they need "new roads" or blah blah they can vote to extend it.

One of the Eastwood sales people joked when I asked about it ..she said "Expect to pay it indefinitely"

But, there are parts in Woodbury that coming due in a few years.  That will be our best bet to see if they choose to extend those melloRoos.  If they do,  it's over for everybody  :-X
 
SoclosetoIrvine said:
Mrsmarketingguy said:
All great points. Seems like the prospects of Eastwood are just plain better.

Was hoping that paying off the mello Roos would help turn a profit off the rental in the long run but I'm not sure where to get info on that. Then I heard they can renew mello Roos after their initial proposed time.

If I could pay off the MR in Eastwood it's one less monthly payment to eat into the rent and later on when I resale I can say my house has no MR, or is this not how it works in Irvine?
Click to expand...

I haven't heard anything about being able to payoff mello Roos at one time.  But yes, Mello Roos can be extended after the proposed time.  Essentially, if they feel they need "new roads" or blah blah they can vote to extend it.

One of the Eastwood sales people joked when I asked about it ..she said "Expect to pay it indefinitely"

But, there are parts in Woodbury that coming due in a few years.  That will be our best bet to see if they choose to extend those melloRoos.  If they do,  it's over for everybody  :-X
Click to expand...

I heard about paying off a Mello Roos when I was doing research. But most of the information was from San Diego : http://www.bubbleinfo.com/2012/04/04/paying-off-mello-roos/

I am not sure if it is applicable to Irvine because in SD when you pay it off you are exempt from eligible houses for renewal on future MR. Something I am trying to look into for Irvine as there is not much on it online. I might start a new thread in general real estate about this because its an interesting idea.

Super interesting to see what happens to Woodbury. If they renew the bonds I don't see why all the other communities wouldn't. But I must admit mello roos does keep the area nice assuming those in power don't squander it...
 
Mrsmarketingguy said:
SoclosetoIrvine said:
Mrsmarketingguy said:
All great points. Seems like the prospects of Eastwood are just plain better.

Was hoping that paying off the mello Roos would help turn a profit off the rental in the long run but I'm not sure where to get info on that. Then I heard they can renew mello Roos after their initial proposed time.

If I could pay off the MR in Eastwood it's one less monthly payment to eat into the rent and later on when I resale I can say my house has no MR, or is this not how it works in Irvine?
Click to expand...

I haven't heard anything about being able to payoff mello Roos at one time.  But yes, Mello Roos can be extended after the proposed time.  Essentially, if they feel they need "new roads" or blah blah they can vote to extend it.

One of the Eastwood sales people joked when I asked about it ..she said "Expect to pay it indefinitely"

But, there are parts in Woodbury that coming due in a few years.  That will be our best bet to see if they choose to extend those melloRoos.  If they do,  it's over for everybody  :-X
Click to expand...

I heard about paying off a Mello Roos when I was doing research. But most of the information was from San Diego : http://www.bubbleinfo.com/2012/04/04/paying-off-mello-roos/

I am not sure if it is applicable to Irvine because in SD when you pay it off you are exempt from eligible houses for renewal on future MR. Something I am trying to look into for Irvine as there is not much on it online. I might start a new thread in general real estate about this because its an interesting idea.

Super interesting to see what happens to Woodbury. If they renew the bonds I don't see why all the other communities wouldn't. But I must admit mello roos does keep the area nice assuming those in power don't squander it...
Click to expand...

is this spam? (I just responded to pay off MR thread)
 
eyephone said:
Mrsmarketingguy said:
SoclosetoIrvine said:
Mrsmarketingguy said:
All great points. Seems like the prospects of Eastwood are just plain better.

Was hoping that paying off the mello Roos would help turn a profit off the rental in the long run but I'm not sure where to get info on that. Then I heard they can renew mello Roos after their initial proposed time.

If I could pay off the MR in Eastwood it's one less monthly payment to eat into the rent and later on when I resale I can say my house has no MR, or is this not how it works in Irvine?
Click to expand...

I haven't heard anything about being able to payoff mello Roos at one time.  But yes, Mello Roos can be extended after the proposed time.  Essentially, if they feel they need "new roads" or blah blah they can vote to extend it.

One of the Eastwood sales people joked when I asked about it ..she said "Expect to pay it indefinitely"

But, there are parts in Woodbury that coming due in a few years.  That will be our best bet to see if they choose to extend those melloRoos.  If they do,  it's over for everybody  :-X
Click to expand...

I heard about paying off a Mello Roos when I was doing research. But most of the information was from San Diego : http://www.bubbleinfo.com/2012/04/04/paying-off-mello-roos/

I am not sure if it is applicable to Irvine because in SD when you pay it off you are exempt from eligible houses for renewal on future MR. Something I am trying to look into for Irvine as there is not much on it online. I might start a new thread in general real estate about this because its an interesting idea.

Super interesting to see what happens to Woodbury. If they renew the bonds I don't see why all the other communities wouldn't. But I must admit mello roos does keep the area nice assuming those in power don't squander it...
Click to expand...

is this spam? (I just responded to pay off MR thread)
Click to expand...

lol no eyephone. Sorry if I seem like spam but I started the MR thread because I felt it no longer fit the thread topic. Thank you for responding over there though. I will go look at it now.
 
Mrsmarketingguy said:
Oh wow. That's really good to know. Won't be doing an Airbnb ever in Irvine then!
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Are you kidding me! What is there to do in Irvine needing airB&B? The GreatPark Orange Balloon or an adventure trip to Costco parking lots?
 
irvinehomeshopper said:
Mrsmarketingguy said:
Oh wow. That's really good to know. Won't be doing an Airbnb ever in Irvine then!
Click to expand...

Are you kidding me! What is there to do in Irvine needing airB&B? The GreatPark Orange Balloon or an adventure trip to Costco parking lots?
Click to expand...

LOLL ! I was thinking this for the future if I bought in Great Park because the sales office at Beacon Park was selling me on the idea that Great park Neighborhoods would be resort/vacation-like living. Touting museums, water parks, shopping centers, sports centers, training camps for/with famous sports teams, restaurants, farmers markets etc etc. Don't know how overhyped she was but it seemed like an interesting idea to me. Growing up, my family would have been down to enjoy a weekend of interesting new amenities in a new place. But then again my family loved road trips.
 
Mrsmarketingguy said:
Hi everyone. As some of you may have seen from another post, we are a first time home buyer in Irvine. Since this is our first home, I have suggested to my SO to buy a cheaper townhome or even a flat. This way we can have more money in our pocket for future investment.

That being said, we recently visited beacon park and find brio and primrose to be very under budget but the mello Roos is supremely high.

The Avalon has less features we desire but mello Roos is lower, as is HOA. But as of right now we are on the waitlist for Petaluma. Petaluma is right at our budget leaving us not much for other investments.

What do you guys think of the future rent ability of beacon park? Will the great parks ever finish and will it be worth the 5k/yr mello Roos (subject to 2% increase/yr)?
Or would Eastwood Petaluma still be a better rental property than primrose or brio despite the 200k more?
Click to expand...

Dear experienced members or experts here, does this also apply to condo's purchased in Portola Springs, i am already shelling out 3200$/year for MR and it will be a nightmare if it goes up by anything as mentioned above i.e. 2%increase/year etc...crap !
 
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