Thursday, January 25, 2018

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.

Tuesday, January 23, 2018

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.

Monday, January 22, 2018

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.

Tuesday, January 16, 2018

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.

Thursday, January 11, 2018

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:

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.

Tuesday, January 9, 2018

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.

Wednesday, January 3, 2018

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.