where in orange county is the rent higher than potential mortgage payments - please help

F

financeguy_IHB

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Are there any areas of Orange County where housing prices have fallen so much that one could potentially rent out the property and pay all the mortgage, association, and taxes with the rental money received? Unfortunately I only know how much rentals go for in Irvine, where mortgage payments would be substainially higher given the current price levels. However, I thought that maybe in some of hardest hit areas of central and south county it might be possible but don't know those area so well. I would really appreciate any insights you guys might have.
 
[quote author="financeguy" date=1223206156]Are there any areas of Orange County where housing prices have fallen so much that one could potentially rent out the property and pay all the mortgage, association, and taxes with the rental money received? Unfortunately I only know how much rentals go for in Irvine, where mortgage payments would be substainially higher given the current price levels. However, I thought that maybe in some of hardest hit areas of central and south county it might be possible but don't know those area so well. I would really appreciate any insights you guys might have.</blockquote>
Santa Ana
 
[quote author="financeguy" date=1223206156]Are there any areas of Orange County where housing prices have fallen so much that one could potentially rent out the property and pay all the mortgage, association, and taxes with the rental money received? Unfortunately I only know how much rentals go for in Irvine, where mortgage payments would be substainially higher given the current price levels. However, I thought that maybe in some of hardest hit areas of central and south county it might be possible but don't know those area so well. I would really appreciate any insights you guys might have.</blockquote>


Go to South OC Tracker. He profiles many properties at or below rental parity even now. There are some condos in San Juan Capistrano, Rancho Santa Margarita and San Clemente that have really been hammered.
 
[quote author="IrvineRenter" date=1223207638]Go to South OC Tracker. He profiles many properties at or below rental parity even now. There are some condos in San Juan Capistrano, Rancho Santa Margarita and San Clemente that have really been hammered.</blockquote>


Thanks. It's does profile some good properties.
 
It just also depends upon the properties. But i'm seeing rental parity and even better in places as close as Mission Viejo, Aliso and Tustin. It really just depends. Good luck

-bix
 
[quote author="biscuitninja" date=1223246293]It just also depends upon the properties.</blockquote>


You're absolutely right. Even though some properties are really inexpensive they still have very high association fees (ie laguna woods). I almost wish there was a site that lets you filter by association fees.
 
'santa ana' is indeed the answer, i would guess. many of those little SFRs are tumbling into the 150K range. finding a tennant with a steady job and without a dozen family members is the tough part.
 
If I was in the market for cash producing rentals, I would concentrate on south coast metro area.



It is central for jobs, etc and there are lots of condos there. Many are now under $200k for a 3/2.



One concern is the availability of financing. Since many of the condos in these complexes are rentals, many banks and maybe the FHA will take a more jaundiced look at the loans.
 
[quote author="freedomCM" date=1223272998]If I was in the market for cash producing rentals, I would concentrate on south coast metro area.



It is central for jobs, etc and there are lots of condos there. Many are now under $200k for a 3/2.



One concern is the availability of financing. Since many of the condos in these complexes are rentals, many banks and maybe the FHA will take a more jaundiced look at the loans.</blockquote>
You are correct, the area is decent and centrally located. I picked up a 3/2 condo for $215k back in March. With a 5% 7-year I/O loan I'm about $300/month positive renting at $1,650/month. There was a rental just upstairs from my unit that went for $1,675/month back in July. The rent includes water, gas, and trash (covered under the HOA fee) which makes it attractive for tenants.
 
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