Investment Property in OC under 600K

the.irvine

Active member
Looking to find a rental property in OC, under 600K. Any thoughts on potential target areas for this price range, and where it would be easier to rent out etc
 
the.irvine said:
Looking to find a rental property in OC, under 600K. Any thoughts on potential target areas for this price range, and where it would be easier to rent out etc

South OC might be the place to look...focus on 3 bedroom units if possible.
 
I think if we knew what your idea of an investment is, you would get some better answers.

Do you want cashflow?  Do you want appreciation?  A+ tenants or C tenants?
 
Cashflow is going to be tight anywhere you go in OC. 

If I was going to invest, I would try to figure out areas that are gentrifying and try to capitalize on the appreciation that comes with that.  Look for new Starbucks and Trader Joes opening up.  An influx of gay people and new art galleries opening up are also good indicators, but that might be less true in conservative OC.  (It's a good indicator in LA.)

San Clemente / Dana Point might have possibility as beach cities because they have gone unnoticed compared to Newport / Laguna.  The entry prices are better and I think their reputations will grow.
 
Buy smaller condos in Woodbridge, West Park, or University Park. They have reasonably priced condos that UCI or Uni students may rent out. Buying in Irvine would be a smarter choice than other less expensive ares especially for rental properties.
 
I would love to see anyone link a house that truly cash flows in the OC at 20% down.  I find that people often miscalculate cash flow because they do not account for things properly such as vacancy, maintenance, taxes, borrowing costs, insurance and even PM fees.  If you throw in opportunity costs for the down payments being used I would argue its nearly impossible to find truly cash flowing properties in the OC. 

 
I said it before.  If you are buying an investment property in OC, you are doing it for appreciation.  You can't beat FCB on rent for good properties and the value is too high for costs/taxes purposes (I don't even know what the tax implications are now).

Single homes are already tough to manage and break even on, more so in the OC.  You will need to go out to Riverside or SB county but then you run into other issues there.

If you are looking for property investment, you need to go multi-unit or just buy into a REIT.
 
aquabliss said:
Check out this one:https://www.redfin.com/CA/Anaheim/4354-E-Addington-Dr-92807/home/4312972

Single story 3 bedroom detached in Anaheim Hills, decent yard, no HOA and no Mello... I'd go for this or something like it.

Looks like it backs up to the fwy even though description says quiet neighborhood, maybe they have one of those 15 ft walls as a sound barrier...

You are looking at about $3,000 in taxes/mortgage payment...need to tack on another $400 to $500 for costs/contingencies/insurance. 

You are not renting out that place for $3,500.

This is much nicer and a much better location...rent is $3,000
https://www.zillow.com/homes/for_re...,-117.696534,33.788207,-117.88107_rect/12_zm/
 
I'd head up to the north county, basically Santa Ana and everything north. Atleast try and get yourself the best cap rate (best & OC whatever that means) you can find in. Cap rate generally nose dives closer you get to the coast....and for the right reason.

I'd look for single family detached home, 3 bed, around 1,200sq.ft, preferably 70's built. Minimal maintenance, adequate condition

Just a random property - 1737 n oxford in anaheim.
Tax rate 1.18%, no hoa dues, no mello roos or other ridiculous assessments

I'm sure something like that would rent out like hotcakes. And you'll be able to squeeze as much rent out of it as possible.
 
hello said:
I would love to see anyone link a house that truly cash flows in the OC at 20% down.  I find that people often miscalculate cash flow because they do not account for things properly such as vacancy, maintenance, taxes, borrowing costs, insurance and even PM fees.  If you throw in opportunity costs for the down payments being used I would argue its nearly impossible to find truly cash flowing properties in the OC.

It's difficult but not impossible.  This one would cashflow at the listing price, but might need some interior work (no photos).
https://www.redfin.com/CA/Santa-Ana/1009-N-Bewley-St-92703/home/3898276

Listing Price:  $300,000
Rent:  $2,200-2,400
 
eyephone said:
This is funny recommending Santa Ana.
makes sense though, appreciation play tend to be in nicer areas, and opposite for chasing cap rates
 
Liar Loan said:
hello said:
I would love to see anyone link a house that truly cash flows in the OC at 20% down.  I find that people often miscalculate cash flow because they do not account for things properly such as vacancy, maintenance, taxes, borrowing costs, insurance and even PM fees.  If you throw in opportunity costs for the down payments being used I would argue its nearly impossible to find truly cash flowing properties in the OC.

It's difficult but not impossible.  This one would cashflow at the listing price, but might need some interior work (no photos).
https://www.redfin.com/CA/Santa-Ana/1009-N-Bewley-St-92703/home/3898276

Listing Price:  $300,000
Rent:  $2,200-2,400

Wow that actually looks like it will cash flow.  FInd me another one like that so I can buy it.  LOL
 
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