INVESTMENT: Would you buy two 150k properties with higher rents in Tustin, or one 300k property in Irvine?

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rikkus256_IHB

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Hello,



For investment purpose, if you have 300k, would you buy 2(two) older, $150k properties in Tustin with $1400 rent/mo each or 1(one) 300k property in Irvine with $1800 rent/mo?



I know the Tustin choice yield much higher rents but the Irvine choice has much greater potential on the future home value due to the superior city layout, environment, and schools.



Any inputs would be greatly appreciated!
 
[quote author="rikkus256" date=1251615026]Hello,



For investment purpose, if you have 300k, would you buy 2(two) older, $150k properties in Tustin with $1400 rent/mo each or 1(one) 300k property in Irvine with $1800 rent/mo?



I know the Tustin choice yield much higher rents but the Irvine choice has much greater potential on the future home value due to the superior city layout, environment, and schools.



Any inputs would be greatly appreciated!</blockquote>


The Tustin properties and it's not even close.
 
[quote author="no_vaseline" date=1251637528]I think we're getting trolled. Nothing that rents for $1400 is for sale for $150K in Tustin.</blockquote>


I don't know who this guy is, but he's on redfin posting the exact same questions



http://forums.redfin.com/rf/board/message?board.id=OrangeCounty&thread;.id=1201
 
[quote author="ERPguy" date=1251705440][quote author="no_vaseline" date=1251637528]I think we're getting trolled. Nothing that rents for $1400 is for sale for $150K in Tustin.</blockquote>


I don't know who this guy is, but he's on redfin posting the exact same questions



http://forums.redfin.com/rf/board/message?board.id=OrangeCounty&thread;.id=1201</blockquote>


and <a href="http://www.fatwallet.com/forums/finance/949125/">here</a>
 
[quote author="ABC123" date=1251706566][quote author="ERPguy" date=1251705440][quote author="no_vaseline" date=1251637528]I think we're getting trolled. Nothing that rents for $1400 is for sale for $150K in Tustin.</blockquote>


I don't know who this guy is, but he's on redfin posting the exact same questions



http://forums.redfin.com/rf/board/message?board.id=OrangeCounty&thread;.id=1201</blockquote>


and <a href="http://www.fatwallet.com/forums/finance/949125/">here</a></blockquote>


You guys make me so proud! And I'm so glad that no_vas and I are no longer the only ones to dig up the goods like this.
 
I don't think he or she is trolling just for the sake of it. Rikkus has already posted the (or a) potential Irvine property here for you to view: <a href="http://www.irvinehousingblog.com/forums/viewthread/6019/">Apricot Drive thread.</a>
 
[quote author="SoCal78" date=1251759362]I don't think he or she is trolling just for the sake of it. Rikkus has already posted the (or a) potential Irvine property here for you to view: <a href="http://www.irvinehousingblog.com/forums/viewthread/6019/">Apricot Drive thread.</a></blockquote>
But I think we are more interested in the $150k Tustin properties that can rent for $1400.
 
[quote author="irvine_home_owner" date=1251763752][quote author="SoCal78" date=1251759362]I don't think he or she is trolling just for the sake of it. Rikkus has already posted the (or a) potential Irvine property here for you to view: <a href="http://www.irvinehousingblog.com/forums/viewthread/6019/">Apricot Drive thread.</a></blockquote>
But I think we are more interested in the $150k Tustin properties that can rent for $1400.</blockquote>


It is probably easier to get the work-from-home real-estate-apprenticeship program that let you make $10k per month with only 4 hours of work/day than these two Tustin properties.
 
[quote author="NewportSkipper" date=1251764973]It is a fact that a $150,000 condo rents for $1,500.</blockquote>
Is it a fact that ***EVERY*** $150k condo rents for $1500?



This guy wants to buy TWO. The only condos I see in Tustin in that price range are in the Mitchell/Village/Main area and that isn't the best part of Tustin. Maybe he can get $1400 rent for each but he'll have some good competition because you can rent apts for less in that part of the neighborhood.



I have some "facts":



1. It has to be a really nice condo to rent for $1400.

2. It had to be in a really nice area to rent for $1400.



MLS lease rentals are wish prices, check Craiglist's and those rents look more like $1200-$1300... not $1500.



So yes... maybe he can get TWO $150k condos but I don't think he can easily rent them out for $1400.



The more salient point being that it's probably more work than it's worth, even at $500/mo profit on each... dropping values/rents is going to eat into that quickly.
 
I disagree with you from the depths of my being.



Please show us the apartments and other offerings.



"The more salient point being that it?s probably more work than it?s worth, even at $500/mo profit on each? dropping values/rents is going to eat into that quickly."



That makes sense?
 
<a href="http://www.redfin.com/CA/Tustin/15500-Tustin-Village-Way-92780/unit-111/home/4491211 ">http://www.redfin.com/CA/Tustin/15500-Tustin-Village-Way-92780/unit-111/home/4491211 </a>



From the cite:



<blockquote>This home is flagged as a short sale. We're sorry, we don't tour or write offers on short sales because of the slim chance that you'll get the home. </blockquote>


Holy Cherry Pick Your Datapoints Batman!
 
Sorry, I put the wrong Redfin property up. That was supposed to be unit #19. There are 15 others if you really need to be convinced, including: 15500 Tustin Village Way #65. It's the same model and closed escrow for $106,000.
 
[quote author="NewportSkipper" date=1251766360]I disagree with you from the depths of my being.



Please show us the apartments and other offerings.



"The more salient point being that it?s probably more work than it?s worth, even at $500/mo profit on each? dropping values/rents is going to eat into that quickly."



That makes sense?</blockquote>
What doesn't make sense?



That it's more work to:



1. Find TWO properties that can rent for the same value in an older less desirable neighborhood.

2. Upkeep both properties to retain that value for the next 3-5 years considering that rents are headed lower, not higher.



I'm just trying to tell you how it is. I have a hard time finding good renters who won't trash my Irvine house, you think it's that easy to do that for TWO condos in a older area of Tustin?



As for apts and other offerings... you gave it up yourself, $1350 from Craiglist. There are others at $1235:



<a href="http://orangecounty.craigslist.org/apa/1351547395.html">http://orangecounty.craigslist.org/apa/1351547395.html</a>



$1295:



<a href="http://orangecounty.craigslist.org/apa/1351535905.html">http://orangecounty.craigslist.org/apa/1351535905.html</a>



And both of those give you one free month so that ends up being more like $1100-$1200 per month.



Here's some apt rentals:



<a href="http://www.apartmentcities.com/California/d/the_village_apt_CA.asp">http://www.apartmentcities.com/California/d/the_village_apt_CA.asp</a>



The 2br is $1100.



Another in the Tustin Village area for $1040:



<a href="http://www.apartmentcities.com/California/d/holiday_garden_apts_CA.asp">http://www.apartmentcities.com/California/d/holiday_garden_apts_CA.asp</a>



Not sure how accurate those prices are but when I checked on them last year (a friend of mine was looking for an apt in the Tustin/Irvine area), they tracked around the same.



And trust me, those "condos" aren't much better than those apartments.
 
Those are small apartments, not townhomes (and in Orange, to boot). There is little-to-no upkeep on a condominium. The townhomes are selling at $106,000-$135,000, not $150,000. I would assume the units at $150,000 are slightly more desirable and therefore able to charge slightly more. As I said: the price range for 2-3 bedrooms is $1,200-$2800.
 
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