Avalon - Eastwood Village

[oc.queries]

Is Avalon worth buying for 600K?
Does it have any future?
What about the rental income?

 

[Prototype]

Is Avalon worth buying for 600K?
Does it have any future?
What about the rental income?

I really liked Avalon when I checked them out but it didn't seem to make sense financially. A 2br flat for $600k+ when Helena is in the same development, Silverleaf, Indigo, Lantana and Tristania give you 3br units within $100k. 

It really depends on the buyer. Last time I checked, Avalon has been selling really well, with few units available.  I thought it'd be perfect for a older parent or couple without kids to live in a nice flat with attached garage.

 

[SoclosetoIrvine]

If you using a plan 1 Caserta cypress village  2 bedroom as a comp, those resale are around $550k right now. Similar sq ft, so $600k might be on the high end for a 2 bed. Try to get a 3 bed if you can

 

[potsticker]

They've been selling very successfully. The Plan 1 is the best option in my opinion. Ground floor at low to mid $500's. Perfect for a young couple or empty nesters.

Rents are $2,600-$3,000 depending on unit size.

 

[nyc to oc]

They've been selling very successfully. The Plan 1 is the best option in my opinion. Ground floor at low to mid $500's. Perfect for a young couple or empty nesters.

Rents are $2,600-$3,000 depending on unit size.

I almost signed a contract on one of the plan 1s for my parents, but passed because at the last moment a better alternative came on the resale market (ground floor single story, no steps, no one above OR below, vaulted ceiling, attached 2 car wide garage, bus lines on the corner for elderly non drivers, low tax rate of 1.03%, south of the 405) But you have to be OK with an older neighborhood, older construction. They just don't build them like that anymore. The land is too expensive for a developer to do a new single story condo with no one stacked on top.  My unit was renovated fully by the previous owners (also empty nesters) so I didn't have to do any of that. There's definitely lots of retirees with cash who think the same way because when those rare units come on the market (single story, no one above or below), they usually go fast.

There were a few things I didn't like about the Avalon Plan 1--tandem garage. Its OK for an elderly couple with only 1 car. If you have two working people (couple) or roommates with a 2 car situation, the tandem is annoying. Avalon is also right along Irvine Blvd. When I was checking out the place, I could definitely hear a lot of traffic noise.

Another issue was dealing with clomping/noise from the unit overhead.

I think Plan 1 for low 500s is a pretty good buy especially for retirees if you don't mind those factors. (is it still low 500s?)  A 2 BR Avalon for 600K seems like not a good buy to me.

 

[SoclosetoIrvine]

They've been selling very successfully. The Plan 1 is the best option in my opinion. Ground floor at low to mid $500's. Perfect for a young couple or empty nesters.

Rents are $2,600-$3,000 depending on unit size.

Just my opinion, but I find it hard to believe that a 2 bed could get $3000 in rent even in Irvine.  $2600 would be high point for me, unless you can show me comps that got that much for 1100 sq ft

 

[potsticker]

The smallest unit, plan 1, rented for $2,700 in Feb (156 bishop landing). There are a couple others in the $2,600 range.

The largest unit, plan 3, rented for $2,800 in Feb (158 bishop landing) and $2,900 (232 bishop landing).

These were all stripped with no builder upgrades. Could you push for $3k on a plan 3 if you had some upgrades and a good location? Maybe.

 

[potsticker]

They've been selling very successfully. The Plan 1 is the best option in my opinion. Ground floor at low to mid $500's. Perfect for a young couple or empty nesters.

Rents are $2,600-$3,000 depending on unit size.

I almost signed a contract on one of the plan 1s for my parents, but passed because at the last moment a better alternative came on the resale market (ground floor single story, no steps, no one above OR below, vaulted ceiling, attached 2 car wide garage, bus lines on the corner for elderly non drivers, low tax rate of 1.03%, south of the 405) But you have to be OK with an older neighborhood, older construction. They just don't build them like that anymore. The land is too expensive for a developer to do a new single story condo with no one stacked on top.  My unit was renovated fully by the previous owners (also empty nesters) so I didn't have to do any of that. There's definitely lots of retirees with cash who think the same way because when those rare units come on the market (single story, no one above or below), they usually go fast.

There were a few things I didn't like about the Avalon Plan 1--tandem garage. Its OK for an elderly couple with only 1 car. If you have two working people (couple) or roommates with a 2 car situation, the tandem is annoying. Avalon is also right along Irvine Blvd. When I was checking out the place, I could definitely hear a lot of traffic noise.

Another issue was dealing with clomping/noise from the unit overhead.

I think Plan 1 for low 500s is a pretty good buy especially for retirees if you don't mind those factors. (is it still low 500s?)  A 2 BR Avalon for 600K seems like not a good buy to me.

I'm not sure if they have Plan 1's left. But, in January they were offered in the $520's, stripped. With upgrades would've gotten you up to 550k range.

 

[SoclosetoIrvine]

They've been selling very successfully. The Plan 1 is the best option in my opinion. Ground floor at low to mid $500's. Perfect for a young couple or empty nesters.

Rents are $2,600-$3,000 depending on unit size.

I almost signed a contract on one of the plan 1s for my parents, but passed because at the last moment a better alternative came on the resale market (ground floor single story, no steps, no one above OR below, vaulted ceiling, attached 2 car wide garage, bus lines on the corner for elderly non drivers, low tax rate of 1.03%, south of the 405) But you have to be OK with an older neighborhood, older construction. They just don't build them like that anymore. The land is too expensive for a developer to do a new single story condo with no one stacked on top.  My unit was renovated fully by the previous owners (also empty nesters) so I didn't have to do any of that. There's definitely lots of retirees with cash who think the same way because when those rare units come on the market (single story, no one above or below), they usually go fast.

There were a few things I didn't like about the Avalon Plan 1--tandem garage. Its OK for an elderly couple with only 1 car. If you have two working people (couple) or roommates with a 2 car situation, the tandem is annoying. Avalon is also right along Irvine Blvd. When I was checking out the place, I could definitely hear a lot of traffic noise.

Another issue was dealing with clomping/noise from the unit overhead.

I think Plan 1 for low 500s is a pretty good buy especially for retirees if you don't mind those factors. (is it still low 500s?)  A 2 BR Avalon for 600K seems like not a good buy to me.

I'm not sure if they have Plan 1's left. But, in January they were offered in the $520's, stripped. With upgrades would've gotten you up to 550k range.

Solid post.  Thanks potsticker.  Crazy rental prices compared to cypress village.  Must be the proximity to Zion market helping them I would assume

Yes if you could get a home in the $550 after everything, that's a winner.  Where it gets musty is if closing ends you at $600k without any upgrades.  There's better selections once you hit $600k barebones especially for a bit more money

That new woodbury one usc posted for $600k as an example would be one

 

[potsticker]

In my opinion, there's a huge pool of buyers in the below $700k range and a serious lack of inventory. Especially, if these buyers want new construction, they ultimately have to make trade-offs. Tandem garage, tri-level, fewer bedrooms, etc.

Agree that Avalon Plan 1 mid-$500's all-in is a decent buy. Crossing over $600k's is questionable.

 

[Passenger0]

I think you can also check out the Lantana in cypress village east. If if remember correctly, those are 3 master bedroom for low $600k. each master bedroom can be $900-$1000 montly?

 

[SoclosetoIrvine]

I think you can also check out the Lantana in cypress village east. If if remember correctly, those are 3 master bedroom for low $600k. each master bedroom can be $900-$1000 montly?

Agree.  I'll go as far as saying, it'll be tough not to get $3000 in rent for a 3 bed in Irvine.  The schools sell themselves.  Do you know if Lantana is tandem garage or normal 2 car?  Potsticker brought up a good point about Avalon.  Tandem is a no go for me

 

[nyc to oc]

Does it seem so many of the Avalons  are being bought by investors, barebones, no upgrades, just to rent out immediately? If I were a buyer looking to live there myself, I would not want to live in such a neighborhood.

 

[supacpeon]

These are the Avalon pricing sheets from about 3-4 weeks ago for Phase 19 and 20.

 

[Passenger0]

I think you can also check out the Lantana in cypress village east. If if remember correctly, those are 3 master bedroom for low $600k. each master bedroom can be $900-$1000 montly?

Agree.  I'll go as far as saying, it'll be tough not to get $3000 in rent for a 3 bed in Irvine.  The schools sell themselves.  Do you know if Lantana is tandem garage or normal 2 car?  Potsticker brought up a good point about Avalon.  Tandem is a no go for me

normal 2 car garage. But I'm not pretty sure since I didn't pay attention to the garage even though I went to the restroom in the garage(yes, the sales office build a temporary restroom there )

 

[supacpeon]

I think you can also check out the Lantana in cypress village east. If if remember correctly, those are 3 master bedroom for low $600k. each master bedroom can be $900-$1000 montly?

Agree.  I'll go as far as saying, it'll be tough not to get $3000 in rent for a 3 bed in Irvine.  The schools sell themselves.  Do you know if Lantana is tandem garage or normal 2 car?  Potsticker brought up a good point about Avalon.  Tandem is a no go for me

normal 2 car garage. But I'm not pretty sure since I didn't pay attention to the garage even though I went to the restroom in the garage(yes, the sales office build a temporary restroom there )

Lantana are all normal 2 car garages. Avalon Plan 1 is tandem, Plans 2 and 3 are normal 2 car garages.

 

[potsticker]

Does it seem so many of the Avalons  are being bought by investors, barebones, no upgrades, just to rent out immediately? If I were a buyer looking to live there myself, I would not want to live in such a neighborhood.

Do you think that because renters are more "transient" and won't take care of the home/community? Or the investors (FCB) are taking delivery barebones and it potentially drives the value down?

My thought is with rent around $3k a month, a tenant should be grossing around $100k. In Irvine, they should behave like many of the owners - high income younger families or empty nesters.

Seems like there are a lot of investors lurking...I think USC said on all his listings this year he's had at least 1 investor bidder.

 

[eyephone]

Does it seem so many of the Avalons  are being bought by investors, barebones, no upgrades, just to rent out immediately? If I were a buyer looking to live there myself, I would not want to live in such a neighborhood.

Do you think that because renters are more "transient" and won't take care of the home/community? Or the investors (FCB) are taking delivery barebones and it potentially drives the value down?

My thought is with rent around $3k a month, a tenant should be grossing around $100k. In Irvine, they should behave like many of the owners - high income younger families or empty nesters.

Seems like there are a lot of investors lurking...I think USC said on all his listings this year he's had at least 1 investor bidder.

The fact is that for $3k you can rent a 3 bedroom place according to Zillow. So why would you for pay $3k for a 2 bedroom?

 

[nyc to oc]

Does it seem so many of the Avalons  are being bought by investors, barebones, no upgrades, just to rent out immediately? If I were a buyer looking to live there myself, I would not want to live in such a neighborhood.

Do you think that because renters are more "transient" and won't take care of the home/community? Or the investors (FCB) are taking delivery barebones and it potentially drives the value down?

My thought is with rent around $3k a month, a tenant should be grossing around $100k. In Irvine, they should behave like many of the owners - high income younger families or empty nesters.

Seems like there are a lot of investors lurking...I think USC said on all his listings this year he's had at least 1 investor bidder.

Both of those reasons. This is from my experience as both a renter and owner and living in neighborhoods that gradually became more renter dominated. (has nothing to do with income level, but rather the sense of being temporary. I've been owner, renter, back to owner. The mindset just changes. High income people can be crappy neighbors too.