Build New in Established Irvine Neighborhood or Buy New

Buying new in Irvine has choices:

1. Buy New Construction in the Great Park neighborhoods
2. Buy New in Orchard Hills
3. Tear Down in an existing neighborhood like University Park & build new.

It's worth comparing.  An existing home in University Park can be purchased for $875,000 on a standard 5,000 square foot lot. Construction costs of a 3,000 square foot house could run $750k. Total is $1,625,000 approximately. End value would be close to $2M. Of course, this home would be your ideal floor plan and with your chosen finishes.

New build at Orchard Hills - Ravello in the Reserve at Orchard Hills:

Ravello homesite 39 as of today offered at $1,941,463: 3,455 square feet, 4 bed, 4.5 baths, 2 car garage - very well appointed.

If you have the luxury of time, then a conversation with a local builder would be wise. You can buy into an established neighborhood and get more value.

2 SFRs on one Lot in Santa Ana

Very good investment opportunity in the quickly re-gentrifying city of Santa Ana. Two small 3 bedroom, 1 bath completely detached SFRs on a large corner lot. These need some TLC, but projected GRM is close to 10x in the near future. Call me for details on this hot deal.

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 Owner-User Quality Duplex for Sale - Walk to Main Street!

Excellent owner user quality duplex for sale 1.5 miles from the beach in Huntington Beach. $1,325,000 for 3,200 square feet of a quality building is a very good buy. Let's run the numbers. This could be a great cash flow asset and a family user benefit.

I tract every multi-family deal in OC. Let me show you what is best.

Tustin Office Condo for Sale

If you are looking to own your own office space in Orange County, then this listing is perfect for you:
1,718 square feet with 4 private offices, a conference room, staff area, lobby, storage and private bathroom on the second floor in Tustin, just steps to Irvine and the rest of OC. Priced at $449,000, it is a very good value and an ideal way to stop paying your landlord every month!
Consider SBA financing with 10% down payment or very aggressive conventional financing with far fewer fees. I have an excellent commercial loan officer recommendation if you need.

Commercial real estate leasing in Orange County, CA

Let me know if we can help you find space for your business. In this case, we are leasing 2,000 sf of retail space for our clients in Laguna Hills.

Santa Ana fixer rental investment property for sale

Not for the faint of heart: These two buildings on one lot require much attention and patience, but the deal looks good. $410,000 asking price for a 1920's SFR 3 bed 1 bath with some architectural style. The house needs a dramatic overhaul - down to the studs - as per listing agent. The commercial building which was most recently an operating grandfathered restaurant cannot be a restaurant going forward as per the City. Potential uses would be a second residential unit or office space. Both would have to be approved by the City.  I expect rents for a renovated 3 bed, 2 bath house (yes adding a 2nd bathroom) are $2500 easy in that area. Turn the BBQ Pit into a 1 bedroom apartment and rents should be $1300. Overall deal including renovations $550,000 with $45,600 in rents is a 12 GRM in a market of 16-18 GRMs on existing duplexes.

Santa Ana SFR for Investment

This deal looks good. 10 blocks away from the renovating downtown. 4 bedroom, 2 bath house with potential rents of $2500+. Over 1,500 square feet on over 6,000 sf lot. Asking $450,000. Potential 4.88 cap rate on easily achievable rents with some rehab. Call me for details on this hot listing at 415-269-6249.

Investment Property Loans

One of the lenders that I work with for Non-Owner Occupied rental property loans offers these unique loan aspects on 1-4 units:

1. No prepayment penalties
2. Up to 5 properties loaned on by the bank
3. Borrower can have up to 15 residential loans (commercial loans not counted)
4. Cash out loans up to 10 financed properties
5. Can use rental income for subject property with no history of managing a rental
6. Interest only payments
7. Investment property loans up to $2,500,000
8. Recoup funds from all-cash purchases as Rate & Term refinance up to 6 months
9. Full documentation & Alternative doc loans to qualify

Let me know if you are looking for new or refinance loans for your rental properties. I have great sources for best rate or alternative financing options as needed.

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.

I am not a CPA - nor am I CNN - these are my thoughts as a Broker in California on the new Tax Bill

The conclusions by CNN on this new tax bill need more analysis. Article here: http://money.cnn.com/2018/01/10/real_estate/tax-reform-home-prices/index.html

1. Most people are getting a lower tax rate - this means more money in people's paycheck  - including as of this first pay period. It may be small but it is an increase. Some larger earners are getting bigger increases felt already.  It is these larger earners who are most affected by the reduction on loan interest deductions to $750,000 from $1M.  But they are the ones who will feel the increase in net income the most. More net income yields more savings for down payments, which will offset the reduction in interest deductions.

2. There has long been a cap on loan interest deductions at $1M. Buyers of homes primarily over $1,250,000 have made decisions to buy those homes despite not being able to fully deduct the interest on their loans. ($1.25 range and up is based on $1M loan cap and an approximate 20% down payment)
     - Many buyers in that >$1.25M price point are trading up with equity.
     - Many buyers are paying in cash or with large down payments.
     - Consider the math: At 4% interest rate, the $250,000 difference is $10,000 of deduction, which at 30% tax bracket is $3,000 of net income or $250 per month. Many buyers are getting loans between 750-1M will get a blended hit - not as bad. And many buyers who are taking much higher loans $1.5M - $3M in many coastal areas will not feel the impact of $250 per month. And all of these buyers will be getting lower overall income tax rates.

3. A higher standard deduction will have less people itemize. OK - maybe true. But those affected by the lower caps on interest deductions and property tax caps absolutely will itemize. The standard deduction is not prevalent in the high cost coastal areas. If you are filling out a 1040EZ - I would suggest talking to a CPA or tax-preparer to see if you can save money by itemizing. The higher income earners definitely do!

4. Most high income or high net worth individuals buying $1.25M+ properties have made their ability to buy those homes through self-employment, investing in real estate or having good additional incomes. If they are high income employees - most have good guidance from CPA's to reduce tax liabilities. All of these high price point home buyers will weather the new tax guidelines well. Most will end up benefiting from lower income tax rates which will offset the deduction limits.

5. Have you seen an impact in the your 401k? Have you noticed what the stock market is doing? Corporate earnings will be up and corporate net incomes will be up. This will greatly impact high price point buyers over the rest.

6. One of the greatest financial grievances over the last couple years by higher income earners has been the cost of health insurance. Those additional hundreds of dollars per month allocated to health premiums - especially if you have employees - has dampened higher priced home sales. Those premiums going down with proposed plans may very well help the real estate markets.

7. There is a connection between the entry level $300,000 buyers in California, the mid range $500k-$800k buyers, and the & the $1M+  buyers. If this tax bill spurs the first time buyer, that will spur a trade up transaction into the mid range and that will impact the next tier. Not all transactions happen this way, but more lower priced transactions will impact the higher levels positively.

That's all for now. Let me know what you think. It will be interesting how this plays out.

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.

Perfect Owner User / 1031 Exchange on Iconic Balboa Island

Three units for sale on the best retail street in Balboa Island. One residential unit over two retail stores. Both stores are leased with >$6,000 monthly income. The 2 bedroom residential unit has just be completely renovated to a very high standard. This would be an ideal investment property with personal use benefits.

Mixed use properties are more difficult to finance, but that may be an opportunity for a cash rich buyer or someone who can find alternative ways to finance.

Listed at $2,350,000. Call me for details.

Rental Property Investments Orange County, CA

Let's talk about the investment opportunities available to you within a 1 hour Southwest flight south. Most of Silicon Valley and the Bay Area has become very expensive to buy investment properties.  Good alternatives can be found surrounding one of the best growth cities in SoCal: Irvine. 

Why Irvine?  This city is master planned and very pro-business. It is building many new office parks and buildings to attract great companies. This would be a perfect place to buy a rental property but not possible in the multi-family arena. The city did not build 4plexes or small apartment buildings. If so, they are owned by The Irvine Company - essentially the developer of all of Irvine since the 1950s.

There are very good opportunities for duplex, fourplex and small apartment building purchases in surrounding cities such as Santa Ana, Anaheim, Costa Mesa, Huntington Beach, Garden Grove and Westminster. Vacancies are low, rents are strong and new apartment growth is limited. These class B & C buildings are in excellent locations, stable and can be upgraded to increase rents. Quality property management is also readily available. I am sure you will find the rates of return better than Bay Area options.

Aside from straight rental investment options, consider the benefits of a rental property in a top beach location. There are small rental investment properties in great beach towns such as Huntington Beach, Newport Beach, Laguna Beach, San Clemente and others in Orange County. A purchase of a fourplex can be a great investment plus you can allocate one unit for family (or AirBnB) use.

Let's have a conversation about your goals. I am sure there are some good options here for you.

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...

 

 

Orange County Apartment Investments for Sale

The small apartment market in Orange County, CA is hot! There are not many listings and most are in escrow. That being said, I keep a short (and ever-changing list) of attractive deals.

4 units Lake Forest, CA: large, owner-occupied quality four units with ideal amenities: garages, large unit mix, quality design, clean street, great OC location

3 units Huntington Beach - townhouse style side by side units with garages walking distance to the pier and downtown

4 units Huntington Beach - super large 4 units of 8,000 square feet! Great water side location. High quality architecture, custom built - ideal for owner-user.

For an updated list of investment properties, connect with me anytime!

Mario's cell in OC: 415-269-6249 call or text