Investment SFR in Irvine up to 1.5M - Anything??

[shahshah]

Martin you mentioned 4 bedroom SFR in older communities as a preferred investment but what about 3 bedroom?

Hi I need your help again! I usually buy multiunits for investment but I'm very uncomfortable with the current OC/LA markets and their overinflated asking prices, so I'm back in Irvine. Any good investment properties below $1.5M to consider in Irvine? I never even considered anything with cap below 5, but I did a quick check on Redfin and the cap rates on SFRs I see here are not higher than 3-3.5% (and even lower in newer places with higher MR) so I'm open to make concessions on cap if there is realistic hope of equity growth in long-term. Please advise. 

I think your best bet would be to buy a true SFR with lower HOA and lower Mello Roos.  Maybe an older home with a larger lot that you can update.  I'd focus on 4+ bedroom with a downstairs bedroom and full bath home (having a loft is a plus).  In 4-5 years, Orchard Hills/Eastwood/Portola Springs will be sold out of new homes and that will force many buyers into the resale market so I see Irvine home prices rising as new home inventory declines.  Are you looking to do a 1031 exchange?

 

[usctrojancpa]

Martin you mentioned 4 bedroom SFR in older communities as a preferred investment but what about 3 bedroom?

Hi I need your help again! I usually buy multiunits for investment but I'm very uncomfortable with the current OC/LA markets and their overinflated asking prices, so I'm back in Irvine. Any good investment properties below $1.5M to consider in Irvine? I never even considered anything with cap below 5, but I did a quick check on Redfin and the cap rates on SFRs I see here are not higher than 3-3.5% (and even lower in newer places with higher MR) so I'm open to make concessions on cap if there is realistic hope of equity growth in long-term. Please advise. 

I think your best bet would be to buy a true SFR with lower HOA and lower Mello Roos.  Maybe an older home with a larger lot that you can update.  I'd focus on 4+ bedroom with a downstairs bedroom and full bath home (having a loft is a plus).  In 4-5 years, Orchard Hills/Eastwood/Portola Springs will be sold out of new homes and that will force many buyers into the resale market so I see Irvine home prices rising as new home inventory declines.  Are you looking to do a 1031 exchange?

Depends on the price but if the home is over $1m then buyers might be more drawn to a 4 bedroom home (especially with a downstairs bedroom and full bath).