Analyze my OC condo investment...

[quote author="No_Such_Reality" date=1212710876][quote author="tenmagnet" date=1212706474]Recently, 24 units in Buena Park went for a 4.7 cap.

PP was $4M.

No way that would pencil for most of us, the buyer 1031 and stepped in with heavy $$$ down just to achieve B/E.</blockquote>


There are plenty of triple net commercial properties available at a COC of 7-8%. Major brands like CVS, Office Depot, Staples, Bestbuy.



Heck, go on and finance a Walmart location for triple-N 6.5%.



All you have to do is cash the check.</blockquote>


That?s true, I see there are plenty of stand alone Walgreens and CVS for sale.

If only it were that easy.

The problem is coming up with the $7M+ to buy one.



Maybe we should start small before hitting up Walmart.

Like a Jiffy Lube or Jack In the Box.

Anything over that would mean saying goodbye to the trophy house in Northpark, eating $.99 hamburgers, and changing my lifestyle and handle from Tenmagnet to Slumming it.
 
[quote author="usctrojanman29" date=1212650309]

hahaha Thanks...which car forum/s are you on?</blockquote>


I used to lurk on e46 fanatics when I had my 325ci. Now i've graduated to e90posts with my 328 coupe. :)
 
[quote author="25w100k+" date=1212719988][quote author="usctrojanman29" date=1212650309]

hahaha Thanks...which car forum/s are you on?</blockquote>


I used to lurk on e46 fanatics when I had my 325ci. Now i've graduated to e90posts with my 328 coupe. :)</blockquote>


Dude you need a convertible!
 
Quick update for everyone. The family that I have as tenants pay the rent like clockwork by the 3rd of each month plus they gave me a $2,000 deposit and they keep the place very clean. Now for the sales comps (3bd/2ba) since my purchase...



Unit # 33 sold for $201,500 on 8/4/08

Unit # 48 sold for $212,135 on 6/20/08 (unit above mine and was rented for $1,675 as of Aug 1st)

Unit # 24 sold for $210,000 on 7/21/08

Unit # 38 sold for $230,000 on 7/3/08



So far, so good in terms of renting and sale comps.
 
[quote author="usctrojanman29" date=1218029537]Quick update for everyone. The family that I have as tenants pay the rent like clockwork by the 3rd of each month plus they gave me a $2,000 deposit and they keep the place very clean. Now for the sales comps (3bd/2ba) since my purchase...



Unit # 33 sold for $201,500 on 8/4/08

Unit # 48 sold for $212,135 on 6/20/08 (unit above mine and was rented for $1,675 as of Aug 1st)

Unit # 24 sold for $210,000 on 7/21/08

Unit # 38 sold for $230,000 on 7/3/08



So far, so good in terms of renting and sale comps.</blockquote>


Have you been watching the foreclosures in this complex and the one on Stevens? Most are going back to the bank for $100k to $150k.
 
[quote author="graphrix" date=1218032584][quote author="usctrojanman29" date=1218029537]Quick update for everyone. The family that I have as tenants pay the rent like clockwork by the 3rd of each month plus they gave me a $2,000 deposit and they keep the place very clean. Now for the sales comps (3bd/2ba) since my purchase...



Unit # 33 sold for $201,500 on 8/4/08

Unit # 48 sold for $212,135 on 6/20/08 (unit above mine and was rented for $1,675 as of Aug 1st)

Unit # 24 sold for $210,000 on 7/21/08

Unit # 38 sold for $230,000 on 7/3/08



So far, so good in terms of renting and sale comps.</blockquote>


Have you been watching the foreclosures in this complex and the one on Stevens? Most are going back to the bank for $100k to $150k.</blockquote>
I have and I'm sure that prices will dip into the high $100ks, but I'm holding for 7-10 years. The ones going back to the bank for $100k to $150k are most likely 1bd and 2bd units because most of the 3bd units were 100% financed for $350k to $400k at the peak. There are a few other 3 bedroom units that are pending with list prices of $200k to $220k. I like the South Coast Villas complex a lot better than the Stevens one. That being said, as long as my tenants stay put for a while and pay their rent like clockwork I can ride out the storm (plus I was looking for another tax write-off as my income has been increasing and I hate paying taxes). haha
 
[quote author="Knife Catcher" date=1218093185]So the South Coast Villas complex is better than the one on stevens?</blockquote>
Yes, it's cleaner and has less foreclosure activity than Stevens. Also, the HOA at South Coast Villas is doing better (not say that it's doing well but REO units are beginning to move) than the Stevens HOA.
 
[quote author="jriosdds" date=1218295575]Is this a condo conversion?</blockquote>
I believe so, I think it was converted to condos back in the late 80s or early 90s.
 
From reading this thread, consensus is that you made a decent investment. Congrats. How's it going anyways? Are you going to purchase another?
 
[quote author="bugmenot" date=1226893983]From reading this thread, consensus is that you made a decent investment. Congrats. How's it going anyways? Are you going to purchase another?</blockquote>
Tenants paying rent like clockwork. I'm probably down about $15k-$20k in value since I bought. I have a 7-year ARM @ 5% so I got some time. If prices dip again, I might pick up another rental in another complex.
 
[quote author="usctrojanman29" date=1212580615]Ok, be honest and brutal if you have to be. I picked up a 3bed/2ba condo (1,120 SF) over in the South Coast Villas (Bristol/MacArthur by South Coast Plaza on the board of Santa Ana/Costa Mesa) for $215k and used a 90% 7-yr ARM I/O loan @ 5% on it back in March. At the peak the property was purchased for $400k in May 2006. I have it rented out for $1,650/month which results in a rental multiple of 130x. My hold period will be 7-10 years and hope to sell for $275k - $300k then. Here's how the numbers shake-out:



$1,650 rent

$275 HOA

$1,110 (Interest, Prop Tax escrow, PMI)

= + $265 cash flow (does not include the tax advantage from the active real estate tax loss)



What do you guys think???</blockquote>


<a href="http://www.redfin.com/CA/Santa-Ana/1001-W-Macarthur-Blvd-92707/unit-31/home/5518952">Is this your same unit SC</a> listed for $170K and not moving? Not sure which complex you bought into...
 
[quote author="ipoplaya" date=1227253503][quote author="usctrojanman29" date=1212580615]Ok, be honest and brutal if you have to be. I picked up a 3bed/2ba condo (1,120 SF) over in the South Coast Villas (Bristol/MacArthur by South Coast Plaza on the board of Santa Ana/Costa Mesa) for $215k and used a 90% 7-yr ARM I/O loan @ 5% on it back in March. At the peak the property was purchased for $400k in May 2006. I have it rented out for $1,650/month which results in a rental multiple of 130x. My hold period will be 7-10 years and hope to sell for $275k - $300k then. Here's how the numbers shake-out:



$1,650 rent

$275 HOA

$1,110 (Interest, Prop Tax escrow, PMI)

= + $265 cash flow (does not include the tax advantage from the active real estate tax loss)



What do you guys think???</blockquote>


<a href="http://www.redfin.com/CA/Santa-Ana/1001-W-Macarthur-Blvd-92707/unit-31/home/5518952">Is this your same unit SC</a> listed for $170K and not moving? Not sure which complex you bought into...</blockquote>
Same complex. The reason that unit isn't moving is because it's a short sales. There's been a handful of 3bedroom closings in the past 3 months and the prices ranged from $195k to $210k (50% off the peak) with one even going for about $3k over list price.
 
<strong>Can anyone make money on this?</strong>



seems like your PITI is under $1000, plus $400 HOA.



hard to see losing money on 1800sf of rent. or is the land lease up for a big increase?







http://www.redfin.com/CA/Santa-Ana/2512-N-Tustin-Ave-92705/unit-B/home/11920179

2512 N Tustin Ave #B Santa Ana, CA 92705

Price: $89,900

Beds: 3

Baths: 3

Sq. Ft.: 1,853

$/Sq. Ft.: $49

Lot Size: -

Property Type: Condominium

Style: Contemporary

Year Built: 1974

Stories: 2

Floor: 1

View: Greenbelt

Area: Santa Ana North of First

County: Orange

MLS#: Y807590

Source: SoCalMLS

Status: Active

On Redfin: 1 day

New Listing (24 hours)

Great location in Santa Ana, close to Old Town Tustin. Land Lease.



Homeowners Association Information



* Dues #1: $352.00

* Dues #2: $42.00
 
[quote author="freedomCM" date=1227677436]<strong>Can anyone make money on this?</strong>



seems like your PITI is under $1000, plus $400 HOA.



hard to see losing money on 1800sf of rent. or is the <strong>land lease up for a big increase?</strong>







http://www.redfin.com/CA/Santa-Ana/2512-N-Tustin-Ave-92705/unit-B/home/11920179

2512 N Tustin Ave #B Santa Ana, CA 92705

Price: $89,900

Beds: 3

Baths: 3

Sq. Ft.: 1,853

$/Sq. Ft.: $49

Lot Size: -

Property Type: Condominium

Style: Contemporary

Year Built: 1974

Stories: 2

Floor: 1

View: Greenbelt

Area: Santa Ana North of First

County: Orange

MLS#: Y807590

Source: SoCalMLS

Status: Active

On Redfin: 1 day

New Listing (24 hours)

Great location in Santa Ana, close to Old Town Tustin. Land Lease.



Homeowners Association Information



* Dues #1: $352.00

* Dues #2: $42.00</blockquote>


Yes, the land lease for these is very questionable. IIRC, they are dealing with longtime legal issues regarding a step-up in lease amounts if property values reach a certain value (which they did).



edited to add:

from this property:

<span style="color: red;"><em>Priv Rmks: Bank owned, leased land. There is pending litigation on the lease. Selling agent to verify litigation, lease terms and HOA dues. Property is sold as is with no warranties or representations. </em></span>



from another (yelling optional):

<span style="color: red;"><em>Priv Rmks: PROPERTY IS ON LEASED LAND AND IN THE COURTS FOR DISPUTE WITH EXISTING HOMEOWNERS. LAND LEASE ADJUSTMENT PROPOSED AMOUNT WAS APPRAISED AT $2,200 A MONTH.ANY NEW BUYERS WILL HAVE TO DISPUTE THIS AMOUNT ON THERE OWN.ONCE THE NEW BUYERS HAVE SETTLED THE LAND LEASE PAYMENT DISPUTE WITH THE LAND OWNERS,IT WILL THEN BE RETRO ACTIVE BACK TO THE TIME THE NEW BUYERS TOOK POSSESION OF PROPERTY.</em></span>



Who needs to drive to Vegas when you can gamble right here in OC?
 
[quote author="usctrojanman29" date=1227257763][quote author="ipoplaya" date=1227253503][quote author="usctrojanman29" date=1212580615]Ok, be honest and brutal if you have to be. I picked up a 3bed/2ba condo (1,120 SF) over in the South Coast Villas (Bristol/MacArthur by South Coast Plaza on the board of Santa Ana/Costa Mesa) for $215k and used a 90% 7-yr ARM I/O loan @ 5% on it back in March. At the peak the property was purchased for $400k in May 2006. I have it rented out for $1,650/month which results in a rental multiple of 130x. My hold period will be 7-10 years and hope to sell for $275k - $300k then. Here's how the numbers shake-out:



$1,650 rent

$275 HOA

$1,110 (Interest, Prop Tax escrow, PMI)

= + $265 cash flow (does not include the tax advantage from the active real estate tax loss)



What do you guys think???</blockquote>


<a href="http://www.redfin.com/CA/Santa-Ana/1001-W-Macarthur-Blvd-92707/unit-31/home/5518952">Is this your same unit SC</a> listed for $170K and not moving? Not sure which complex you bought into...</blockquote>
Same complex. The reason that unit isn't moving is because it's a short sales. There's been a handful of 3bedroom closings in the past 3 months and the prices ranged from $195k to $210k (50% off the peak) with one even going for about $3k over list price.</blockquote>


A similar condo was listed today for 125k



<a href="http://www.redfin.com/CA/Santa-Ana/1001-W-Macarthur-Blvd-92707/unit-95/home/5519304">http://www.redfin.com/CA/Santa-Ana/1001-W-Macarthur-Blvd-92707/unit-95/home/5519304</a>
 
[quote author="cran" date=1227685009][quote author="usctrojanman29" date=1227257763][quote author="ipoplaya" date=1227253503][quote author="usctrojanman29" date=1212580615]Ok, be honest and brutal if you have to be. I picked up a 3bed/2ba condo (1,120 SF) over in the South Coast Villas (Bristol/MacArthur by South Coast Plaza on the board of Santa Ana/Costa Mesa) for $215k and used a 90% 7-yr ARM I/O loan @ 5% on it back in March. At the peak the property was purchased for $400k in May 2006. I have it rented out for $1,650/month which results in a rental multiple of 130x. My hold period will be 7-10 years and hope to sell for $275k - $300k then. Here's how the numbers shake-out:



$1,650 rent

$275 HOA

$1,110 (Interest, Prop Tax escrow, PMI)

= + $265 cash flow (does not include the tax advantage from the active real estate tax loss)



What do you guys think???</blockquote>


<a href="http://www.redfin.com/CA/Santa-Ana/1001-W-Macarthur-Blvd-92707/unit-31/home/5518952">Is this your same unit SC</a> listed for $170K and not moving? Not sure which complex you bought into...</blockquote>
Same complex. The reason that unit isn't moving is because it's a short sales. There's been a handful of 3bedroom closings in the past 3 months and the prices ranged from $195k to $210k (50% off the peak) with one even going for about $3k over list price.</blockquote>


A similar condo was listed today for 125k



<a href="http://www.redfin.com/CA/Santa-Ana/1001-W-Macarthur-Blvd-92707/unit-95/home/5519304">http://www.redfin.com/CA/Santa-Ana/1001-W-Macarthur-Blvd-92707/unit-95/home/5519304</a></blockquote>


With an HOA of $330! WTF, could that be correct?!
 
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