Beacon park or Eastwood as future rental

[dream16]

High Mello Roos and HOA will hamper anyone from breaking even on renting their home out later if they only put 20% down.  For 2-3 bedroom attached and detached condos in newer parts of Irvine, you are currently looking at around $2/sf in rent.

Having been paying $581/month in MR & HOA & loosing money on my IR Rental, i partially agree with your last statement that the rent is around $2/sf in rent, going by that i should be getting $3200/mo rent but i could only get $2750, but again detached vs attached and number of floors etc. comes into play, but even then the 2 bed room attached condo hits a limit i guess at 3k max.

For the potential buyer, as everyone else might suggest you, IR is not a great city at the moment if you are looking for someone else to pay your PITI+HOA+Home Ins+ everything else etc. & also make a positive cash-flow out of it, that ship sailed way back in 2011..and right now its all at the higher end, so unless you have plans to live in the property yourself or have kids going into school or a huge downpayment, its not worth it.

 

[dream16]

I agree I will be able to rent it out. But I think I'm concerned about just breaking even with my monthly payments since I heard the rental market thins at $4K. I would be making payments at $4300.

Just to throw out that primrose is located right next to beacon park school but I'm not sure if I'd break even either with mello Roos and and HOA calculating to $680 a month.

I would do more research to see how many people are actually getting $4k in rent.  If it's very common, then a $300/month bullet isn't too bad if you really love this house.  Lots of people play the appreciation route so that $300/month might be nothing if it goes up...just remember you have to pay real estate commission for the sell (usually it's at 6% or so... $800k selling at 6% is $48,000 so it would in theory need to appreciate $48k to break even) 

people who can afford $4k in rent usually buy their own.  I would guess it's more close to $3600-3800/month... but I'm not realtor. Ask USCTrojanCPA for more info

And that is the precise reason that someone in my circle will end up getting a realtor license just like ever other asian i know to save on the HUGE 6%

 

[dream16]

Irvine new build in general are terrible as rental due to high taxes and its really hard to break even especially if you also has high mortgage payment.

But between BP and EW, I would pick EW due to lower fixed MR without 2% increase and higher demand.  EW is selling really well right now and what's hot right now probably still going to be hot in the future.

How to find out if the MR i am paying is fixed or subject to increase?

 

[usctrojancpa]

I agree I will be able to rent it out. But I think I'm concerned about just breaking even with my monthly payments since I heard the rental market thins at $4K. I would be making payments at $4300.

Just to throw out that primrose is located right next to beacon park school but I'm not sure if I'd break even either with mello Roos and and HOA calculating to $680 a month.

I would do more research to see how many people are actually getting $4k in rent.  If it's very common, then a $300/month bullet isn't too bad if you really love this house.  Lots of people play the appreciation route so that $300/month might be nothing if it goes up...just remember you have to pay real estate commission for the sell (usually it's at 6% or so... $800k selling at 6% is $48,000 so it would in theory need to appreciate $48k to break even) 

people who can afford $4k in rent usually buy their own.  I would guess it's more close to $3600-3800/month... but I'm not realtor. Ask USCTrojanCPA for more info

And that is the precise reason that someone in my circle will end up getting a realtor license just like ever other asian i know to save on the HUGE 6%

That's only if you represent both sides on the transaction.  Most agents want a 5% commission to sell a home  (split between the listing agent and buyer agent) then there's about 1% for 3rd party closing costs (title, escrow, etc).  But there are agents out there that offer lower listing commission structures, like me.   

 

[hello]

High Mello Roos and HOA will hamper anyone from breaking even on renting their home out later if they only put 20% down.  For 2-3 bedroom attached and detached condos in newer parts of Irvine, you are currently looking at around $2/sf in rent.

Having been paying $581/month in MR & HOA & loosing money on my IR Rental, i partially agree with your last statement that the rent is around $2/sf in rent, going by that i should be getting $3200/mo rent but i could only get $2750, but again detached vs attached and number of floors etc. comes into play, but even then the 2 bed room attached condo hits a limit i guess at 3k max.

For the potential buyer, as everyone else might suggest you, IR is not a great city at the moment if you are looking for someone else to pay your PITI+HOA+Home Ins+ everything else etc. & also make a positive cash-flow out of it, that ship sailed way back in 2011..and right now its all at the higher end, so unless you have plans to live in the property yourself or have kids going into school or a huge downpayment, its not worth it.

I think the people who think they can profit on an Irvine rental purchase do not take into consideration all the factors that will eat into your NOI, such as those you mentioned like MR, HOA and even some you didnt mention like vacancy, Cap Ex, maintenance. 


You are right, that ship sailed away years ago.  Perhaps if we are lucky it will come back, but not until prices drop significantly or unless rents increase substantially.  The chances for the latter are slim as rents and prices are being pushed to the limits, so our chances will have to lie with falling home prices. 

 

[lnc]

Irvine new build in general are terrible as rental due to high taxes and its really hard to break even especially if you also has high mortgage payment.

But between BP and EW, I would pick EW due to lower fixed MR without 2% increase and higher demand.  EW is selling really well right now and what's hot right now probably still going to be hot in the future.

How to find out if the MR i am paying is fixed or subject to increase?

Simplest thing to do in compare year over year changes in your tax bill  but make sure you are compare the MR portion not the whole tax bill since there's a 2% increase in base tax due to a 2% increase in assessed value of your home. 

Also check your builder's disclosure.  For example, Ellwood's info sheet clear states their MR are subject to 2% increase.

 

[irvinehomeshopper]

I agree that the GP will be the place to be. It will have museums, concert venue, sports pavilions, Irvine packing house, cultural terraces, and a bunch of other stuffs to take the blandness out of the Irvine. However, I seriously don't think Irvine would ever be a tourist destination requiring an overnight stay. It may attract cross county visitors. Few people even have heard of Irvine from other parts of the country except for one guy living in Duluth. I tell my neighbors that I do some work in Irvine and they say which Irving?

Oh wow. That's really good to know. Won't be doing an Airbnb ever in Irvine then!

Are you kidding me! What is there to do in Irvine needing airB&B? The GreatPark Orange Balloon or an adventure trip to Costco parking lots?

LOLL ! I was thinking this for the future if I bought in Great Park because the sales office at Beacon Park was selling me on the idea that Great park Neighborhoods would be resort/vacation-like living. Touting museums, water parks, shopping centers, sports centers, training camps for/with famous sports teams, restaurants, farmers markets etc etc. Don't know how overhyped she was but it seemed like an interesting idea to me. Growing up, my family would have been down to enjoy a weekend of interesting new amenities in a new place. But then again my family loved road trips.