Investment Property in OC under 600K
- Thread starter the.irvine
- Start date
momopi
Well-known member
I went to Bass Pro Shops in Rancho Cucamonga on Sunday, then crossed the street to Victoria Gardens mall.
The areas surrounding Bass Pro Shops is now filled with recently built housing and the outdoor mall is packed with families -- kids everywhere. The area has a strong growing vibe. The mall has more stores now and parking can be an issue, though it looks like they are planning to build additional parking structure.
Home prices are not cheap but I suspect like Riverside, it may have big drops in the next down cycle. There is a train station locally and commute by train to LA union station is about 1 HR 10 min each way. There is no good train schedule from that station to Fullerton/Irvine due to lengthy station transfer routes.
In the last down cycle you can buy nice 4 bed SFR in cul-de-sac in Norwalk/Bellflower/Downey area for $250K, but the home will likely be 40 years old. Commuting to both LA Union Station and Irvine is doable from Norwalk/Santa Fe train station. In the next down cycle you may be able to purchase new-ish SFR in Rancho for $250K, monthly rental income will be couple hundred bucks less vs Norwalk/Bellflower area.
The areas surrounding Bass Pro Shops is now filled with recently built housing and the outdoor mall is packed with families -- kids everywhere. The area has a strong growing vibe. The mall has more stores now and parking can be an issue, though it looks like they are planning to build additional parking structure.
Home prices are not cheap but I suspect like Riverside, it may have big drops in the next down cycle. There is a train station locally and commute by train to LA union station is about 1 HR 10 min each way. There is no good train schedule from that station to Fullerton/Irvine due to lengthy station transfer routes.
In the last down cycle you can buy nice 4 bed SFR in cul-de-sac in Norwalk/Bellflower/Downey area for $250K, but the home will likely be 40 years old. Commuting to both LA Union Station and Irvine is doable from Norwalk/Santa Fe train station. In the next down cycle you may be able to purchase new-ish SFR in Rancho for $250K, monthly rental income will be couple hundred bucks less vs Norwalk/Bellflower area.
Regarding to Rancho, unlike Irvine where home price are the first to raise and the last to fall during housing market up and down, Rancho Cucamonga is just the opposite, they are the first to fall and the last to rise. And their housing market will be more sensitive to economy situation and more dramatic in price fall than Irvine.
And yes, I believe we are in the late stage of housing boom cycle so there might be a good buying opportunity for this area in the next down turn.
And yes, I believe we are in the late stage of housing boom cycle so there might be a good buying opportunity for this area in the next down turn.
sgip
Well-known member
My brother recommended that we invest in a "bail out" property verrrrryyy close to that Santa Ana Bewley street listing a couple of years ago. After touring the home, what sealed the deal for me was the bullet holes in the bedroom windows. At present prices it looks like I made the right choice by moving on to another location.
LA County around Inglewood has seen prices jump by quite a bit once the Stadium was announced. That's quite a peak now to be buying in.
Isn't it wise at this point to accumulate cash, then sweep in after the final HQ2 site is announced? That's going to be quite the land rush, IMHO.
My .02c
LA County around Inglewood has seen prices jump by quite a bit once the Stadium was announced. That's quite a peak now to be buying in.
Isn't it wise at this point to accumulate cash, then sweep in after the final HQ2 site is announced? That's going to be quite the land rush, IMHO.
My .02c
Liar Loan
Well-known member
Soylent Green Is People said:
This is a good point. I was looking at multi-units there about three years ago before the Rams deal was finalized, and back then they would have broken even on a monthly basis, but I haven't checked on prices lately. With all of the different areas of LA gentrifying right now, I'm sure investors were jumping into Inglewood after the announcement.
lon johnson
New member
Need more like $900k for a 3 bed, wont get much in a nice area for $600k unless you go much further inland to the boonies around Portola.
eyephone said:
I would actually recommend Santa Ana >
https://www.redfin.com/CA/Santa-Ana/369-E-Memory-Ln-92705/home/21935164
We have a similar floor plan in the same development that currently rents for $3100 per month since 2016.
It's a newer development with very low HOA and 1% taxes.
This part of Santa Ana is much nicer and newer. Rentals here are in short supply and the demand is high.
This area has appreciated 20 - 25% in the last 2-3 years.
Kenkoko said:eyephone said:
I would actually recommend Santa Ana >
https://www.redfin.com/CA/Santa-Ana/369-E-Memory-Ln-92705/home/21935164
We have a similar floor plan in the same development that currently rents for $3100 per month since 2016.
It's a newer development with very low HOA and 1% taxes.
This part of Santa Ana is much nicer and newer. Rentals here are in short supply and the demand is high.
This area has appreciated 20 - 25% in the last 2-3 years.
$3100 for that! Good for you.
sgip
Well-known member
Couple of things that need to be scanned for prior to purchasing in any Condo development.
1) If you're buying Non-Owner, an HOA Cert has a 99.5 percent chance of be required by your lender. FYI It's sometimes case by case when buying Owner Occupied. The HOA Cert will turn up details like litigation or low Fidelity Bond/HOA insurance, killing off the deal.
2) If it's cheap and a great rental, you may not be the only one recognizing this fact. Some Condo projects are well over 50% investor owned. Once that tipping point is reached, only a small percentage of lenders will fund in that community and the rate you may get isn't bueno. The only way to get this information is from the HOA Management, not the seller, and not the listing Agent.
One way to tell if there's an issue - check the listing history on the unit in question, as well as a couple others in the same tract. If it shows Listed, Under Contract, Re-Listed, Price Reduced, Under Contract, Price Reduced, Price Reduced... it means there's trouble financing the property.
Some listing Agents will tell buyers "It's no problem....you should be able to finance the home!" - I had this happen last week with a customer of mine - The seller and their Agent had a nice squishy letter from the attorney suing the builder saying it's nooooo problem to purchase. Oddly enough, the seller or the Agent didn't have a lender on hand ready to finance the property for this buyer. As it turned out, The project was for all intents and purposes a failed remodel and likely headed for years of contingency fee payments to these attorneys. Best not to get involved in cases like this.
Low cost condos in well managed communities is still a great way to invest in rental property. It's the up front legwork that will be a bit of a hassle, but well worth it in the long run.
My .02c
1) If you're buying Non-Owner, an HOA Cert has a 99.5 percent chance of be required by your lender. FYI It's sometimes case by case when buying Owner Occupied. The HOA Cert will turn up details like litigation or low Fidelity Bond/HOA insurance, killing off the deal.
2) If it's cheap and a great rental, you may not be the only one recognizing this fact. Some Condo projects are well over 50% investor owned. Once that tipping point is reached, only a small percentage of lenders will fund in that community and the rate you may get isn't bueno. The only way to get this information is from the HOA Management, not the seller, and not the listing Agent.
One way to tell if there's an issue - check the listing history on the unit in question, as well as a couple others in the same tract. If it shows Listed, Under Contract, Re-Listed, Price Reduced, Under Contract, Price Reduced, Price Reduced... it means there's trouble financing the property.
Some listing Agents will tell buyers "It's no problem....you should be able to finance the home!" - I had this happen last week with a customer of mine - The seller and their Agent had a nice squishy letter from the attorney suing the builder saying it's nooooo problem to purchase. Oddly enough, the seller or the Agent didn't have a lender on hand ready to finance the property for this buyer. As it turned out, The project was for all intents and purposes a failed remodel and likely headed for years of contingency fee payments to these attorneys. Best not to get involved in cases like this.
Low cost condos in well managed communities is still a great way to invest in rental property. It's the up front legwork that will be a bit of a hassle, but well worth it in the long run.
My .02c
newly listed under 600k
https://www.redfin.com/CA/Santa-Ana/420-Jeanette-Ln-92705/home/21932347
This is the same floor plan we have. I feel this is the best floor plan in the development. Market rent for this one is around $3300 - $3500
https://www.redfin.com/CA/Santa-Ana/420-Jeanette-Ln-92705/home/21932347
This is the same floor plan we have. I feel this is the best floor plan in the development. Market rent for this one is around $3300 - $3500