Selling vs Renting out

If your out of pocket expense on mortgage after rent is not too bad and if you think you can manange it, then I would say rent it out. Eastwood is highly desirable to rent for young families and I don't think you should have much problem in finding a tenant.  I have seen several brand new units rented out within a month or two in my neighborhood.  Over the medium to long term, Eastwood property will turn out to be a good investment for you in my opinion considering that you  possibly bought in first few phases of Eastwood Community.  Since its a new construction, there shoudn't be much of repairs that you have to foot the bill for. I would recommend buying a home warranty just in case when you rent it out to take care of any future repair requests from a tenant.
 
I?ve had dozens on these conversations with my seller clients.  I?ll provide my more in depth thoughts when I wrap up with my open house today. 
 
you are cash flow negative that isn?t good. If you think you may be forced to sell for one reason or another in the next 10 years I would just sell now.  There will likely be some dip in in the near future and are likely close to a peak. I don?t know the exact years but irvine real estate went down from 2007 to 2011?? If you get caught in the down cycle and have to sell it could suck
 
So it comes down to numbers, if you are negative on your cash flow on a monthly basis (rent - total monthly housing costs) you should probably consider selling the home.  If the negative delta is only a few hundred a month and your property is in the sweet spot of the market, then you can consider renting for 1 to 2.5 years after you move out (assuming you've occupied the home for 2 or more years) to benefit from further home appreciation and still capture the $250k/$500k gain exemption. 

Feel free to PM or email me and I'll email closed rental comps for your home as there have been dozens of leased rental in Eastwood.
 
OCVillager said:
Need suggestions and directions on how to decide. Anyone with prior experience please provide some insights. Thanks in advance.
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What do "friends" know about residential real estate and financial matters?  Very little, with few exceptions.

With a partner, I built apartments, condos, and houses in Orange and  LA County.  We made bank and I kept one condo  and one house free and clear just for giggles.

Nightmares.  I rented a 3,100 square foot house in Tustin to an attorney.  His wife left him and he was always late paying rent. I evicted him and he refused to pay  up $10,000 that he owed me.  Then he moved to Colorado, out of my legal reach.

Bad move not selling it.

The condo also had a bad tenant who left his radio alarm on and it woke  up neighbors at 3 AM who called me at home.  I calculated my cash flow at a meager 5% per year, and for what?  Headaches and cleanup when it was vacated.

So I sold  that and invested that money in FRESX which appreciated in excess of 20% annually for the next five years.  You can look it up.

The stock market is instantly liquid, has no management headaches, and your investment is not leveraged  as it is in a house  with a loan in place.  Neither of mine did and still they were pains in the gluteus.

So I tell you to SELL out of experience and professional training.  Nobody ever went broke making a profit.

DIA, QQQ, PSI and RIO  are some of my biggest holdings today.
I already took big gains out of AUENX and KOL to name but two.
 
When I moved to Irvine, i though long and hard about selling vs renting my privious mortgage free home. 

Renting it would be a guarantee cash flow positive but be a landlord is like taken on another job, although it?s not hard and really does not taken that much time, it?s like you are on call 24/7 and need to be there to taking care of every little things.

So I decided to sell it and don?t want to be a landlord since my day job are pretty demanding already and at the end of the day, just want to relax and don?t want to worry anything else.

Actually it turn out pretty good for me in the last 5 years.  The money from the last house went directly to S&P500 index fund and some AAPL appreciated way more than that house.
 
lnc said:
Actually it turn out pretty good for me in the last 5 years.  The money from the last house went directly to S&P500 index fund and some AAPL appreciated way more than that house.
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Good for you!  This is another encouraging bit of advice for the original poster. Let's hope he follows it and does well.
 
Burn That Belly said:
Do what most people are doing now. Airbnb it.

I think you get more money that way plus you can review the people that select your home. Airbnb also provides their own insurance policy for damages.
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Will HOA allow AirBnB? Maybe if you have SFH?
 
the.irvine said:
Burn That Belly said:
Do what most people are doing now. Airbnb it.

I think you get more money that way plus you can review the people that select your home. Airbnb also provides their own insurance policy for damages.
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Will HOA allow AirBnB? Maybe if you have SFH?
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most HOAs restrict short-term rentals and even check airbnb to report to the city.  transient occupancy in residential zones is prohibited throughout irvine.

Zoning Code:

Land uses are defined and regulated by the City of Irvine Zoning Code. Due to the transient nature of occupancy (less than 31 days), short-term rentals are considered a hotel/motel use, which are prohibited in all residential zones in which single family homes are found and the majority of zones in which multi-family developments are found.

Some multi-family developments (i.e. apartments and condominiums) exist or could be constructed in the 3.1 Multi-Use, 5.0 IBC Mixed Use, 5.1 IBC Multi-Use, and 8.1 Trails and Transit Oriented Development zones (Zoning inquiries by address and Citywide zoning maps are available at Zoning). In each of these zones a hotel use is subject to a Conditional Use Permit (CUP) which is considered through a discretionary review by the Planning Commission via a public hearing. (Information on the CUP process is available at Development Assistance Center).
http://www.cityofirvine.org/community-development/code-enforcement
 
Burn That Belly said:
Actually first and foremost Airbnb is not only short term rental. It could be 36 days or something. HOAs are not restricting airbnb, they are simply restricting short term rental defined as 30 days or less.

Secondly, HOAs from what I?ve seen, they don?t do shit or enforce until someone makes a complaint. So if you piss off your neighbors then sure.

However, with many empty stucco boxes and FCB neighbors, these people generally do not make formal complaints unless there are egregious disregard to ?quiet enjoyment?. FCBs do not, I repeat, are not like angry PTSD Anglo-American Republicans who feel they must engage neighbors and take matters into their own hands. They are low key and do not want trouble upon themselves. You would need to have incredibly loud music, beer bottles being thrown around to really make them notice.

Just another plus of living in FCB-based neighborhood.  ;D
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sounds like all the more reason not to live in Eastwood or other FCB /investor heavy neighborhoods. Who the F would want to live in a place like that with no sense of community,  random people passing through on a transient basis, and absentee landlords with no long term stake in maintaining the neighborhood quality of life, as long as the monthly rent checks are coming in.
 
but isn?t Eastwood filled with tons of FCBs and investors who buy, and immediately rent out? do you deny it? A lot of new Irvine neighborhoods are like that. The new build property closes escrow, and within a week, its listed for rent with no landscaping, window coverings or anything that makes it feel like a home versus a sterile stucco shell.
 
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