Question for real estate investors
- Thread starter Loco_local
- Start date
NEW -> Contingent Buyer Assistance Program
As a rental, I don’t see how this cash flows. Just look at the assumptions below, that don’t even factor in vacancy, repairs, capital expenditure costs, so you’d really have to charge insanely high rent just to break even. Even if you paid all cash, there are better investments with higher potential return that are more passive (ie: buy & hold low cost total market index funds).
My dad did but he sold it.
GrowthStateofMind
Active member
Oh man, looks like the HOA is doing a poor job of managing exterior of that community. There’s some serious TLC needed inside and out.
As a rental, I don’t see how this cash flows. Just look at the assumptions below, that don’t even factor in vacancy, repairs, capital expenditure costs, so you’d really have to charge insanely high rent just to break even. Even if you paid all cash, there are better investments with higher potential return that are more passive (ie: buy & hold low cost total market index funds).
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GrowthStateofMind
Active member
And as a fix & flip, I saw 2 nearby comps that are listed at $650k and $660k, respectively… I don’t know that one would come ahead on rehabbing that place then reselling considering the agent fees, renovation costs probably would exceed $100k
usctrojancpa
Well-known member
I tell all my investor clients, the best bang for the buck nowadays is a 3-bedroom DETACHED property in most part of South OC. You'll get no Mello Roos and very reasonable HOA with good potential appreciation as long as you buy in "B" or better schools areas. And I put my money where my mouth is, I own a 3-bd detached condo in Baker Ranch and Aliso Viejo.
irvinehomeowner
Well-known member
Baker for proximity (sort of), Aliso for area.
Don't you own a property in Meadows?
usctrojancpa
Well-known member
My dad did but he sold it.
Loco_local
Active member
How much would it cost to renovate a house like this for an average person who isn’t doing any of the work themselves? How much do you think it could sell for when completed? Do you think it will sell for anywhere close to the asking price?
vsfan
Active member
Almost only the land is worth selling, imho.