Irvine Investment Properties

irvine123_IHB

irvine123_IHB

New member
i am starting to look at potential investment properties in irvine. Not ready to buy yet, just want to do some research, and wait for the market to "ripe" more. I am not looking for the bottom, just low enough to make financial sense. Any suggestions on locations, area, condo, townhome vs. small single family?
 
<p>First off, I strongly suggest against it unless you get a phenomenal deal. I would urge you to eliminate price appreciation from your ROI calculations. The best properties to purchase from a rental standpoint IMO are 2 bedroom units. These are easier to rent. Singles, roomates, newlyweds, etc. When you start getting into SFR, you need families to move in.</p>

<p>You are going to have to put at least 20% down maybe more for an investment property. You'll be responsible for paying taxes, insurance, and the upkeep. You also have the opportunity cost of not investing your down payment. California is also a renter family state, do keep in mind it's hard to evict tenants. If you haven't been a landlord before, make sure you do your research.</p>

<p>Prices have to fall tremendously in SC to make rentals a good investment. IMO, you are bearing a great risk for a low reward.</p>

<p>Again, I'd stay cheap and buy a 2 bd condo in an area that has young/mid age professionals. NOT college age kids.</p>
 
<p><em>>>just low enough to make financial sense.</em></p>

<p>In that case, I'd grab a lawn chair and a beer. No, make that several beers. There's a still a ways to go.</p>
 
<p>Just take the gross annual rent and subtract 35% and divide by the cost of the property to get a cap rate. If it is below the rate of interest you would be paying on a loan walk away. Also if it is a condo I would subtract the annual HOA and if there is Mello Roos/bonds I would subtract that too from the gross annual rent. </p>

<p>Keep in mind you need to use actual rent not the rent that some Realtard says you can get for it. Remember that rents do not always go up and in fact currently they are flat. As a private landlord you will be less likely to raise rents if you have a tenant that pays their rent on time. It can take over a year to recoup the costs of a $200 monthly increase if a tenant leaves depending on what the expenses are and how long it is vacant. I predict that rents will start to go down in late 2008 and early 2009. Once these fools with trashed credit from the foreclosures have to find a place to live it will be more difficult to find a qualified tenant. Some areas will have a strong rental demand but you need to study the area and see who your competition is. I am hoping none of my tenants in my Costa Mesa property leave in the next two years because there is a lot of competition there.</p>

<p>If I were you I'd get a really comfortable chair, a minimum of six months of beer and food because we have long way to go.</p>
 
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