Single Tenant Triple Net Investment Properties - Risks and Rewards

Do you like the safety of a corporate deposit in your bank account automatically every month?

Many seasoned real estate investors have achieved this goal by single tenant triple net investment properties. This has been the go-to super secure place to 1031 exchange your real estate investment capital gains for decades. They range from Burger Kings to Dollar Stores to CVS Drug stores and many other single retail tenant operators.

But today, with retail being hit by both protests riots and Covid-19 retail curtailment, this industry is on shaky ground.

I would love to speak with anyone considering a 1031 exchange into a "passive" investment. The play is still good, but the choice in where, when and what to buy is key. Let's plan and execute for your best financial outcome. #realestate #1031exchange #investmentproperty #cre

Amazing 6 units in Laguna Beach

This is a perfectly located and conditioned investment property!

One SFR and 5 units in the rear building. Outstanding interiors and amazing site. Walk to the beach and walk to the village of Laguna Beach. Ideal property to keep an owner-user unit. Call for details before this rare opportunity is gone.

San Clemente Triplex near the Coast

Three units in a very good location of idyllic San Clemente for sale at a very good price.

Units need some updating and are delivered vacant.

Offered at $1,190,000 for 2,242 square feet with a good lot and decent parking.

All cash purchase or private financing to renovate, then refinance with conventional.

Call for more details!

Disneyland Apartments: Costar's view of apartment investments in Anaheim

Excellent information and guidance from Costar on the new construction in Anaheim and the existing apartment investment inventory:

Anaheim Apartment Investment Outlook

Let me know what you think Is this the right investment market for you?

Anaheim Apartment Building for Sale

8 very well priced units in strong Anaheim location. 15 GRM on current rents. Some units upgraded. Solid rental investment with good initial cash flow and decent upside going forward.  $268/ft. One 3 bed, Six 2 beds and One 1 bedroom unit. Offered at $2,250,000. Ideal 1031 tax-deferred exchange.

Santa Ana Cash Flow Apartment Building for Sale

7 Cash Flow Units in Santa Ana

Fully occupied, 13.4 GRM on existing rents - well maintained building in low-density area with well-remodeled units. Turn key operation. Ideal 1031 Tax Deferred Exchange replacement property. This is a hot deal in this market - it will not last (and I hate saying that!)  $1,595,000, 4,010 sqft, 6,500 lot size, all one bedroom & one bath units. 

Garden Grove 4 units For Sale

Deal of the Day:

4 Covington style units for sale at a very attractive price of $1.2M - a couple miles from Disneyland, next to The Outlets at Orange and near the Angels / Ducks stadiums. Excellent job center location. 

Ideal unit mix * large building * good lot size * nice street * conforming rate financing available

Call me for details - this is the deal of the week - perfect investment property or 1031 Exchange. - Mario Pinedo - Apartment Broker - 415-269-6249 - KW Commercial DRE 01118365

San Clemente Walk to Beach Iconic 8 Unit for Sale

Deals I like:
This building is an ideal family asset for long term hold and long term enjoyment

Listed currently at $4,695,000 - 8 units, 6 of which have ocean views. Excellent gated parking. Walk to the beach, pier and restaurants. This is an ideal 1031 exchange replacement property.

Call for more details.

Tustin - Irvine Adjacent - Fourplex for Sale

Deals I Like:

Very well priced and high quality four unit building in Tustin at the border of Irvine for sale. Rents are very low. Great upside on turn overs and renovations. Ideal unit mix. Asking $1.3M  Well within the conventional loan limits for better financing. No real options to buy a building in blossoming Irvine unless you are the Irvine Company.  Irvine's jobs and new commercial construction at the District will keep pushing rents up.  Let's walk this property and see why you should own it. 

Coastal Orange County Duplex at Great Price!

Dana Point well priced duplex: both units 3 bedrooms and 2 baths. Low price per square foot for the area. Excellent condition. This is an ideal family user cash flow hybrid. Let's run the numbers!  $1,275,000.

I shop the market for great investment deals for my clients. Let me know what you are looking for.

Huntington Beach 3 unit apartment building for sale

This is a very well located, well-constructed property perfect for an owner-occupied user or a straight high quality investment. Good unit mix of a 3 bed in the front and two townhouse style 2 bedroom units in the back. Garage parking and decent open space parking. The quiet street in the front provides excellent parking too. This property needs some work to bring it to market rate rents, but the structural bones are there.
I would clean up the over grown bushes and trees, paint the building and replace the single pane windows to start. Let me know if you want to see this deal or others in Orange County.

San Bernardino 5 units apartment building with great cash flow for sale

Very well priced 5 unit property for sale on very nice street in San Bernardino. 10.5 GRM on existing rents! Garage parking for most units. Low density street and property. 10,000 sf lot. Asking $550k. Let's go see this property today.

3 Great Apartment Investments: Costa Mesa, Newport Beach & Pasadena

Two 2 bedroom & 1 bath units in West Costa Mesa each with their own 2 car garage. Excellent area and ideal rental configuration. Good location in the neighborhood near single family homes. Very good property for an owner occupant. Rent upside of $300 per month as per rental comps in the area. $939,000 for the duplex.

Newport Beach 2 unit with short term rental designation possible. Very good price per square foot for the area. $1,775,000. Very good owner-user property.

Pasadena 2 unit property for sale as a Short Sale. Very good value at $930,000. Large 9,004 square foot lot. Wonderful area of Pasadena. Short sale is approved at the list price.

For information on these 3 hot listings - or any other rental investments in Los Angeles or Orange County give me a call at 415-269-6249.

USC area 4plex Fixer Apartment Building for Sale

4 one bedroom units near USC sale - needs extensive remodeling - but good value. Let me know if you want to see it. $689,000 * 2,224 sf * 6,510 lot size * built in 1920 * large usable lot for parking or expansion.

Hot Huntington Beach 6 Unit Apartment Building for Sale

Excellent opportunity to own an outstanding location apartment building in premier Huntington Beach. Walk to the pier and Main Street. Owner occupied style townhouse units. Surf City is undergoing a re-gentrification visible in many smaller SFR homes and cottages being expanded or rebuilt. Interest in the area is coming from Newport Beach developers and buyers who are being priced out of that market. With this resurgence in development, rents on the smaller existing apartment stock will rise. The timing is good to get into this market.

Call me for my updated list of best apartment investments in the area you want. I routinely monitor the market and highlight the best deals. Today in Huntington Beach there are 42 rental properties for sale - I like 12 - and of those 3 are prime values.

Hot new listing in Irvine for 1031 exchanges into a super strong school district: Northwood High School, no busy streets, interior location, 3 bed, 2 bath, 1,739 sf, 5,000 sf lot, $849K, Consider that very few detached SFRs are being built new in Irvine on lots this size! The older stock of SFRs on decent lots in Irvine schools will continue to be expanded, renovated or torn down for new construction. It happened in Cupertino and it is happening here. This is a great time to get into this market segment before the huge wave of buyers hit. Most buyers are looking at new construction here for now.

Dana Point Duplex for Sale and a Family Planning Guide

 

This duplex in Dana Point could be the ideal 1031 exchange or straight purchase for long term use.

($995,000 price, great area and condition, 2,198 square feet)

 

I am a big advocate of future planning. Many homeowners buy their first house, sell it and trade up when the kids arrive and then eventually face retirement in a large empty house. What is the next step? Sell the home and look for a nice condo near the beach? While all that is achievable, it does add stress, coordination and tax implications to the mix when you may not want them.

 

My simple plan:

 

Once you own your first starter home, and before the family starts growing, buy a rental property somewhere. It doesn't need to be in Dana Point or some other luxury location. It just needs to be a deal that will increase in value and cash-flow over time. As a current Orange County resident, I would look at small SFRs in Santa Ana, Long Beach, Westminster, Garden Grove. There are many other places to consider - I happen to like the growth patterns there.

 

Keep the house rented and in good shape for 10+ years. Sell eventually when the market is hot in that segment and 1031 trade into a 2 unit (in this case in Dana Point) where the market is less hot.

 

Now keep that property for another 10+ years until the kids go off to college, finish college and can support themselves. Be careful not to downsize too soon - some kids come back!  You probably have traded up the small starter home and bought a larger home in that same time frame. Assuming it is in a good neighborhood, rent it out. Move to the duplex in Dana Point.

 

Why?

 

If you have a nice house in a good neighborhood with low property taxes, you stand to get good, stable rental income and are advantaged by Prop 13 taxes and you get tax depreciation. All with no sales costs to eat into your equity.

 

Your duplex in Dana Point is also Prop 13 tax advantaged, sitting in a nice location where your family will want to come visit and again no new purchase hurdles and costs.

 

Finally, your large rental house is a great asset to keep up with rising living costs. Rents should increase every year and you continue to build equity. If values are going up 3-5% per year and your house if worth $800k - that is $24,000 - $40,000 of equity growth that you earn in your sleep.

 

Plan for the margaritas by the beach in your 60s now before it gets there too soon!

 

- Mario, almost 50...

 

 

7 Unit Walk to Beach Apartment Building for Sale in Santa Monica

I just reviewed a wonderful 7 unit fully occupied apartment building, walking distance to the beach in Santa Monica. This is an excellent property for a long-term hold. Existing rent control in Santa Monica means that when tenants do vacate, old rents will go up to market rents. In some cases this is over $1,000 per unit. The location and the quality of the building also makes for a perfect building to keep  one unit for personal use. Flights on Southwest Airlines are $120 round trip if your book early! The building is offered at $2,500,000 and will require a very hefty down payment of $1,500,000 due to the low existing rents. But, to be able to buy a building in that location at $357,000 per unit and $402 per foot is rare. This is an excellent opportunity for a patient investor.

Two Large Lot Mid-Century Aparment Investments in Orange County for Sale

Probate sale of two nearby multi-family properties - all bungalow style duplexes on large lots in Orange, CA. These are well located fully occupied investment properties available for sale via an approved probate process. The large lots, single story, duplex/bungalow units generate longer term tenancies due to more personal space and no up/down tenants. Perfect properties to have private patios & yards. Excellent parking too. Outstanding 1031 exchange replacement properties. For more info on these rare apartment properties, call Mario Pinedo on his cell 415-269-6249.

Apartment Investments Orange County Southern California

I have recently been comparing apartment investment opportunities in the San Francisco Bay Area to Southern California. The Bay Area (and especially Silicon Valley, The Peninsula and San Francisco) is offering very low rates of return. Also decent investment properties are hard to come by with lots of buyers chasing deals.
These same dynamics are also happening in west Los Angeles. This area is in huge demand causing cap rates to be very compressed.
Alternatives to these areas are southern LA county and most parts of Orange County.
Solid, stable apartment buildings can be purchased in the low $200 per foot range. Fourplexes routinely can be found in the $700,000 price range for 3,500 square foot buildings in decent areas.
There are also great coastal locations with apartment buildings perfectly suited for 1031 exchanges. These premier locations can provide great rental rates and occupancy with potential owner-user unit allocations.