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First Time Second Home Buyer - Advice

My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.
 

eyephone

Well-known member
anteaterscientist said:
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

You might have better cash flow in the IE.
 
eyephone said:
anteaterscientist said:
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

You might have better cash flow in the IE.

Trying to keep relative closeby, that's the primary reason and some of that Irvine safeness.

When you say cash flow, you mean more properties are available there or more renters out there?
 

Cares

Well-known member
He means rent received relative to purchase price or in other words cap rate is higher in IE compared to OC.
 

woodburyowner

Well-known member
Careful on subleasing.  It is not allowed in most HOAs.  You might get unlucky with a nosy neighbor or over zealous board member who will shut you down.
 

usctrojancpa

Well-known member
There are realtors on here that provide will not only provide you a rebate that's more than Redfin will provide but are better more experienced agents.  ;)
 

ucla bruin

New member
I've sublet before in Irvine but this was years ago.

Interview and select your tenants carefully. Even if it's take months. You're buying cash so you've got time. Picking the right tenants will save you a lot of headache. You shouldn't have problems given the demographic of Irvine. I opted for young professionals (ended up with girls). Ask them question to get a sense of how respectful they are, cleanliness, experience living with others, what are their pet-peeves, how they handle conflicts....etc. Have your relative present too so there are no surprises for anyone.

Always do background check, call their references and sign a contract.
 

the.irvine

New member
anteaterscientist said:
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

Please share your experience, would love to learn. At what price point are you looking to buy?
 

JadedOne

New member
ucla bruin said:
I've sublet before in Irvine but this was years ago.

Interview and select your tenants carefully. Even if it's take months. You're buying cash so you've got time. Picking the right tenants will save you a lot of headache. You shouldn't have problems given the demographic of Irvine. I opted for young professionals (ended up with girls). Ask them question to get a sense of how respectful they are, cleanliness, experience living with others, what are their pet-peeves, how they handle conflicts....etc. Have your relative present too so there are no surprises for anyone.

Always do background check, call their references and sign a contract.

Girls that are young, professional, respectful, clean, handle conflicts well, with no pet-peeve issues...interviewed by you and a relative?

Sounds like marriage material!  ;)
 

eyephone

Well-known member
ucla bruin said:
I've sublet before in Irvine but this was years ago.

Interview and select your tenants carefully. Even if it's take months. You're buying cash so you've got time. Picking the right tenants will save you a lot of headache. You shouldn't have problems given the demographic of Irvine. I opted for young professionals (ended up with girls). Ask them question to get a sense of how respectful they are, cleanliness, experience living with others, what are their pet-peeves, how they handle conflicts....etc. Have your relative present too so there are no surprises for anyone.

Always do background check, call their references and sign a contract.

Sounds like a lot a lot of work. But I guess it is possible.
 

sleepy5136

Active member
JadedOne said:
ucla bruin said:
I've sublet before in Irvine but this was years ago.

Interview and select your tenants carefully. Even if it's take months. You're buying cash so you've got time. Picking the right tenants will save you a lot of headache. You shouldn't have problems given the demographic of Irvine. I opted for young professionals (ended up with girls). Ask them question to get a sense of how respectful they are, cleanliness, experience living with others, what are their pet-peeves, how they handle conflicts....etc. Have your relative present too so there are no surprises for anyone.

Always do background check, call their references and sign a contract.

Girls that are young, professional, respectful, clean, handle conflicts well, with no pet-peeve issues...interviewed by you and a relative?

Sounds like marriage material!  ;)
sounds more like discrimination based on gender lol.
 
sleepy5136 said:
JadedOne said:
ucla bruin said:
I've sublet before in Irvine but this was years ago.

Interview and select your tenants carefully. Even if it's take months. You're buying cash so you've got time. Picking the right tenants will save you a lot of headache. You shouldn't have problems given the demographic of Irvine. I opted for young professionals (ended up with girls). Ask them question to get a sense of how respectful they are, cleanliness, experience living with others, what are their pet-peeves, how they handle conflicts....etc. Have your relative present too so there are no surprises for anyone.

Always do background check, call their references and sign a contract.

Girls that are young, professional, respectful, clean, handle conflicts well, with no pet-peeve issues...interviewed by you and a relative?

Sounds like marriage material!  ;)
sounds more like discrimination based on gender lol.

sounds like a good way to end up on a list
 
the.irvine said:
anteaterscientist said:
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

Please share your experience, would love to learn. At what price point are you looking to buy?


Haven't learned much since, I have been on vacation. I'm looking for 2/2 or 3/3, single level or where a bed/bath is on the first floor.

Joined the FB group on Irvine rentals available, there is daily activity and interest.

Open houses are making a comeback with the county starting to open up! The previous workaround was asking a friend with the same floorplan to see her home.


To those who have sent me a direct message: for some reason, I cannot reply directly to you?! As you "do not accept personal messages"
 
Giving an update and to share this journey with whoever is interested.

I have an agent as my realtor relative referred me to a former co-worker from the previous brokerage and I will be receiving the referral amount (25% of the commission) instead of my realtor relative. Won't have to deal with a 1099 form either.

After that was squared away, was ready to start an offer but the place was already under contract. I just saw the place less than 48 hours ago. Can't be too slow, not even for a modest 2bed/2bath place.

Suggested to offer 10-15% above list price.

I'm just looking for an extra place for the MIL. I'm starting to think of those condos with carports at this point... It's like would I rather rent a one bed apt or pay property tax, hoas, home insurance?

When will the price of construction materials like lumber go down?


 

Cares

Well-known member
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.
 

usctrojancpa

Well-known member
anteaterscientist said:
Cares said:
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.

Is there a tracking of list price and sold price for recent sales?

Yes, on MLS.  The amount that the home will sell over the list price will depend upon the amount under comps it's listed for.
 

Cares

Well-known member
USCTrojanCPA said:
anteaterscientist said:
Cares said:
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.

Is there a tracking of list price and sold price for recent sales?

Yes, on MLS.  The amount that the home will sell over the list price will depend upon the amount under comps it's listed for.

Just a general MLS pull of detached Irvine homes that sold in the last 30 days. Only 13 homes sold > 10% over list out of 373 listings. Most are in the 0-5% range.

For attached homes, 6 homes out of 348 sold > 10% over ask.
 
Cares said:
USCTrojanCPA said:
anteaterscientist said:
Cares said:
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.

Is there a tracking of list price and sold price for recent sales?

Yes, on MLS.  The amount that the home will sell over the list price will depend upon the amount under comps it's listed for.

Just a general MLS pull of detached Irvine homes that sold in the last 30 days. Only 13 homes sold > 10% over list out of 373 listings. Most are in the 0-5% range.

For attached homes, 6 homes out of 348 sold > 10% over ask.


That sounds reasonable. I looked at the recent sales for surrounding homes and nothing was over 10%. This is for a 2 bed / 2 bath condo.
 

usctrojancpa

Well-known member
anteaterscientist said:
Cares said:
USCTrojanCPA said:
anteaterscientist said:
Cares said:
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.

Is there a tracking of list price and sold price for recent sales?

Yes, on MLS.  The amount that the home will sell over the list price will depend upon the amount under comps it's listed for.

Just a general MLS pull of detached Irvine homes that sold in the last 30 days. Only 13 homes sold > 10% over list out of 373 listings. Most are in the 0-5% range.

For attached homes, 6 homes out of 348 sold > 10% over ask.


That sounds reasonable. I looked at the recent sales for surrounding homes and nothing was over 10%. This is for a 2 bed / 2 bath condo.

This is because agents are beginning to move up listing prices closer to their true market value as prices have moved up significantly in the past 6 months.
 
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