Shady Canyon as an Investment Property?

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Legit949

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I have some friends looking to buy in Shandy Canyon  (Under $4.5 million) as an investment property? Would this be a worthwhile long term investment or could the money be put to better use? Thank you guys in advance...
 
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You're buying in the most expensive/exclusive community in the best city in the world.  What could go wrong? 

Oh of course if there's a housing collapse then you never know.  There's always better investments than real estate, you just don't know what they are until you compare the returns at a later date.

Are they going to rent it out or live in it?  Must be like $20k/mo to rent there or so? 
 
Legit949 said:
I have some friends looking to buy in Shandy Canyon  (Under $4.5 million) as an investment property? Would this be a worthwhile long term investment or could the money be put to better use? Thank you guys in advance...
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Why put all your eggs in one basket when you can buy like 6-10 properties?  The bigger and more expensive the home, the harder and longer it takes to rent out. 
 
seems like in irvine, better to buy four or five ~1M properties.  they rent out so much easier and much easier to sell if you need money out quickly.
 
USCTrojanCPA said:
Legit949 said:
I have some friends looking to buy in Shandy Canyon  (Under $4.5 million) as an investment property? Would this be a worthwhile long term investment or could the money be put to better use? Thank you guys in advance...
Click to expand...

Why put all your eggs in one basket when you can buy like 6-10 properties?  The bigger and more expensive the home, the harder and longer it takes to rent out. 
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^
I'd go that route if it had to be in Irvine...
 
That's a very bad decision.  By buying one property your standard deviation is very high.  Best not to place all your eggs in one basket.  Also big homes tend to not get rented very often.  People who can afford to pay 20k rent can afford to buy homes. 

I would stick with 3 bed from 600k-700k or 2 bed from 400k-500k. 
 
You can imagine that these people are so rich that they have apartments on HK island, residences in Australia, Apartments in Paris & Shanghai....and now they want a $4.5 million dollar home in Shady Canyon. 

Sure it's a better investment strategy to buy 4 houses with that money, but lets just imagine they are already diversified all over the world. 

For that money, I would buy in Newport Coast...why you slummin it in Irvine?
Do you like 85degrees that much?
 
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