Rental Market in Irvine

[usctrojancpa]

My clients who bought my West Irvine home decided to put it up for rent as the husband got dream job in LA right after they closed.  So I put it up for rent for them and had 5 applications within a week and got it rented to a family who was still under their Irvine lease but were looking for a newer house with a private pool/spa under $4k/month (they didn't find anything in 4 months).  The house which is 1,900sf rented for $3,750/mo (list price) and beat the highest rental comp of $3,500/mo before it (but then my house is fully upgraded and has a pool/spa).  Rented another older home in Northwood that went $100 over list price due to 8 applications in a week.  Had to submit 4 applications to get a rental for a client who sold their home (rental was not in Irvine).  Rental market is still strong.

 

[irvinebullhousing]

My clients who bought my West Irvine home decided to put it up for rent as the husband got dream job in LA right after they closed.  So I put it up for rent for them and had 5 applications within a week and got it rented to a family who was still under their Irvine lease but were looking for a newer house with a private pool/spa under $4k/month (they didn't find anything in 4 months).  The house which is 1,900sf rented for $3,750/mo (list price) and beat the highest rental comp of $3,500/mo before it (but then my house is fully upgraded and has a pool/spa).  Rented another older home in Northwood that went $100 over list price due to 8 applications in a week.  Had to submit 4 applications to get a rental for a client who sold their home (rental was not in Irvine).  Rental market is still strong.

Good to know. The lending is still very tight. Homes are not cheap all across the board at all levels.

 

[usctrojancpa]

My clients who bought my West Irvine home decided to put it up for rent as the husband got dream job in LA right after they closed.  So I put it up for rent for them and had 5 applications within a week and got it rented to a family who was still under their Irvine lease but were looking for a newer house with a private pool/spa under $4k/month (they didn't find anything in 4 months).  The house which is 1,900sf rented for $3,750/mo (list price) and beat the highest rental comp of $3,500/mo before it (but then my house is fully upgraded and has a pool/spa).  Rented another older home in Northwood that went $100 over list price due to 8 applications in a week.  Had to submit 4 applications to get a rental for a client who sold their home (rental was not in Irvine).  Rental market is still strong.

Good to know. The lending is still very tight. Homes are not cheap all across the board at all levels.

I'm getting a refi on a rental and feel like I'm getting probed.  haha

 

[potsticker]

My clients who bought my West Irvine home decided to put it up for rent as the husband got dream job in LA right after they closed.  So I put it up for rent for them and had 5 applications within a week and got it rented to a family who was still under their Irvine lease but were looking for a newer house with a private pool/spa under $4k/month (they didn't find anything in 4 months).  The house which is 1,900sf rented for $3,750/mo (list price) and beat the highest rental comp of $3,500/mo before it (but then my house is fully upgraded and has a pool/spa).  Rented another older home in Northwood that went $100 over list price due to 8 applications in a week.  Had to submit 4 applications to get a rental for a client who sold their home (rental was not in Irvine).  Rental market is still strong.

Good to know. The lending is still very tight. Homes are not cheap all across the board at all levels.

I'm getting a refi on a rental and feel like I'm getting probed.  haha

Yep. I keep telling myself it's worth the trouble and pain if it means avoiding another subprime mortgage crisis.

 

[usctrojancpa]

My clients who bought my West Irvine home decided to put it up for rent as the husband got dream job in LA right after they closed.  So I put it up for rent for them and had 5 applications within a week and got it rented to a family who was still under their Irvine lease but were looking for a newer house with a private pool/spa under $4k/month (they didn't find anything in 4 months).  The house which is 1,900sf rented for $3,750/mo (list price) and beat the highest rental comp of $3,500/mo before it (but then my house is fully upgraded and has a pool/spa).  Rented another older home in Northwood that went $100 over list price due to 8 applications in a week.  Had to submit 4 applications to get a rental for a client who sold their home (rental was not in Irvine).  Rental market is still strong.

Good to know. The lending is still very tight. Homes are not cheap all across the board at all levels.

I'm getting a refi on a rental and feel like I'm getting probed.  haha

Yep. I keep telling myself it's worth the trouble and pain if it means avoiding another subprime mortgage crisis.

Yup, that's why I don't think we'll get into the same mess as we did back in 2007-2009....well at least until they bring back liar loans.  Then it's time to run for the hills and sell all your properties. 

 

[SoclosetoIrvine]

I know BR (Lake forest) is no Irvine in terms of Rental Market as we don't have the prestigious Irvine Schools, but BR has been doing really well in the Rental Market as well...When I listed my investment property there, we got 5 offers within 3 days, the final $100 over asking price as well as 3 month rent in advance.  The applicants all listed having difficulty obtaining a mortgage as a reason for renting...lots being not having enough reserves. 

I got one of the smaller houses in BR (a 4 bedroom) and I was able to rent it out for $3400-$3500 for reference and it's not even in Irvine.  I net $100/month after everything (p&I/taxes/insurance/home warranty/HOA) so it's been good for far and hope it keeps up until it's paid off 

 

[YellowFever]

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[usctrojancpa]

I know BR (Lake forest) is no Irvine in terms of Rental Market as we don't have the prestigious Irvine Schools, but BR has been doing really well in the Rental Market as well...When I listed my investment property there, we got 5 offers within 3 days, the final $100 over asking price as well as 3 month rent in advance.  The applicants all listed having difficulty obtaining a mortgage as a reason for renting...lots being not having enough reserves. 

I got one of the smaller houses in BR (a 4 bedroom) and I was able to rent it out for $3400-$3500 for reference and it's not even in Irvine.  I net $100/month after everything (p&I/taxes/insurance/home warranty/HOA) so it's been good for far and hope it keeps up until it's paid off

Doesn't 401k count as reserves?  At least 60% of it that is.

Different lenders have different definitions of reserves.  With all of the properties that I own, I have to maintain reserves of over $100k or I'm out of luck.  I'm on my 3rd loan this year (2 refi's and my purchase loan) and I had to write 8-10 letters of explanations for each lender but that might be that I'm not a straight forward borrower.  Heck, even one of the lenders didn't count my option trading income even though I've shown increasing trading income on the past 3 tax returns. 

 

[usctrojancpa]

I know BR (Lake forest) is no Irvine in terms of Rental Market as we don't have the prestigious Irvine Schools, but BR has been doing really well in the Rental Market as well...When I listed my investment property there, we got 5 offers within 3 days, the final $100 over asking price as well as 3 month rent in advance.  The applicants all listed having difficulty obtaining a mortgage as a reason for renting...lots being not having enough reserves. 

I got one of the smaller houses in BR (a 4 bedroom) and I was able to rent it out for $3400-$3500 for reference and it's not even in Irvine.  I net $100/month after everything (p&I/taxes/insurance/home warranty/HOA) so it's been good for far and hope it keeps up until it's paid off 

Generally speaking, I'll tell you that buyers outside of Irvine are not as strong financially as Irvine buyers.  Nice job on renting your home out so quickly.

 

[Irvine Seeker]

Doesn't 401k count as reserves?  At least 60% of it that is.

USCTrojanCPA is right that every lender is different.  I don't know if it's comforting to know or should scare me that USCTrojan is also having difficult time getting all of his income counted and writing LOEs left and right.

My case, even with 60% of 401k was well more than 2 year worth of PITI+HOA of what I was trying to get approved and still had tough time convincing the lenders.  The numbers don't lie and it was a simple math but somehow these lenders, primarily the underwriters had hard time understanding the cash reserve calculation.  Fortunately, I got mine finally approved from an independent loan mortgage company which I'll elaborate later after we get the keys and sign all docs.

Unless your loan application is straight forward, very simple, less work and sure profit for the lenders (especially big banks), expect the long delays, multiple requests for same information, disregarding your input and explanation, many many LOEs that don't get read by lenders promptly....

 

[usctrojancpa]

Doesn't 401k count as reserves?  At least 60% of it that is.

USCTrojanCPA is right that every lender is different.  I don't know if it's comforting to know or should scare me that USCTrojan is also having difficult time getting all of his income counted and writing LOEs left and right.

My case, even with 60% of 401k was well more than 2 year worth of PITI+HOA of what I was trying to get approved and still had tough time convincing the lenders.  The numbers don't lie and it was a simple math but somehow these lenders, primarily the underwriters had hard time understanding the cash reserve calculation.  Fortunately, I got mine finally approved from an independent loan mortgage company which I'll elaborate later after we get the keys and sign all docs.

Unless your loan application is straight forward, very simple, less work and sure profit for the lenders (especially big banks), expect the long delays, multiple requests for same information, disregarding your input and explanation, many many LOEs that don't get read by lenders promptly....

I'm probably not the best example to use as I joke with the my lenders saying...."I hope the underwriters' heads don't explode when they get my file because I'm more complex than 3 borrowers put into 1."  haha  I think it shows how things have changed since the easy days of lending.  Today underwriters are very thorough and it's all about CYA for them because if loans come back they lose their jobs. 

Here was the best LEO I had to provide...it was when they were looking at all my payments going out for unrecorded debt (not on my credit report) and they see a $75 monthly ACH going out of my account to The Force Realty (my broker).  So I explain in a letter than the $75 is to my broker and is a my E&O/hanging license monthly fee which is located on a specific line of my Schedule C in my tax return and to look at the commission ACHs coming in (also from The Force Realty).  The underwriter then requests a letter from my broker that what I said was true and that I do not have any kind of loan to him.  Thankfully my lender spoke to the underwriting manager and made sure the underwriter was good with my explanation and that I didn't need a letter from my broker. 

 

[shawnanicole]

How's the rental market looking in Irvine/Tustin today? It is still healthy with a lot of interest and traffic?

The rental market is pretty saturated. I rent an apartment at Centerpointe. I moved in Nov 2015 and a one bedroom (851 sq ft) 4th floor was $2155. Fast forward 11 months and market rent for this unit is $2480.  It's just crazy !

 

[shawnanicole]

I know BR (Lake forest) is no Irvine in terms of Rental Market as we don't have the prestigious Irvine Schools, but BR has been doing really well in the Rental Market as well...When I listed my investment property there, we got 5 offers within 3 days, the final $100 over asking price as well as 3 month rent in advance.  The applicants all listed having difficulty obtaining a mortgage as a reason for renting...lots being not having enough reserves. 

I got one of the smaller houses in BR (a 4 bedroom) and I was able to rent it out for $3400-$3500 for reference and it's not even in Irvine.  I net $100/month after everything (p&I/taxes/insurance/home warranty/HOA) so it's been good for far and hope it keeps up until it's paid off

Doesn't 401k count as reserves?  At least 60% of it that is.

I work for a direct lender and 401k only counts as reserves if you can borrow against it for a hardship withdrawal, many plan provisions will only let you take out one loan at a time and many plans (public school retirement plans are inaccessible until retirement) - for this reason the funds are ineligible as reserves.

 

[dream16]

How's the rental market looking in Irvine/Tustin today? It is still healthy with a lot of interest and traffic?

The rental market is pretty saturated. I rent an apartment at Centerpointe. I moved in Nov 2015 and a one bedroom (851 sq ft) 4th floor was $2155. Fast forward 11 months and market rent for this unit is $2480.  It's just crazy !

Speaking as a landlord, I wish my 2 bed room condo in portola gets that sort of a jump haha...although being a renter as well myself, i wouldn't wish this atrocity on anyone.

 

[dream16]

I know BR (Lake forest) is no Irvine in terms of Rental Market as we don't have the prestigious Irvine Schools, but BR has been doing really well in the Rental Market as well...When I listed my investment property there, we got 5 offers within 3 days, the final $100 over asking price as well as 3 month rent in advance.  The applicants all listed having difficulty obtaining a mortgage as a reason for renting...lots being not having enough reserves. 

I got one of the smaller houses in BR (a 4 bedroom) and I was able to rent it out for $3400-$3500 for reference and it's not even in Irvine.  I net $100/month after everything (p&I/taxes/insurance/home warranty/HOA) so it's been good for far and hope it keeps up until it's paid off

Wow, so you are a rockstar in here, nice to hear your success story, what is "BR"? Since Lake Forest is super close to IR, i might invest there now as well.

 

[usctrojancpa]

How's the rental market looking in Irvine/Tustin today? It is still healthy with a lot of interest and traffic?

The rental market is pretty saturated. I rent an apartment at Centerpointe. I moved in Nov 2015 and a one bedroom (851 sq ft) 4th floor was $2155. Fast forward 11 months and market rent for this unit is $2480.  It's just crazy !

Wow, that's a hefty income in rent.  You can get a 2-bedroom private rental condo for around $2,500/mo. 

 

[usctrojancpa]

I know BR (Lake forest) is no Irvine in terms of Rental Market as we don't have the prestigious Irvine Schools, but BR has been doing really well in the Rental Market as well...When I listed my investment property there, we got 5 offers within 3 days, the final $100 over asking price as well as 3 month rent in advance.  The applicants all listed having difficulty obtaining a mortgage as a reason for renting...lots being not having enough reserves. 

I got one of the smaller houses in BR (a 4 bedroom) and I was able to rent it out for $3400-$3500 for reference and it's not even in Irvine.  I net $100/month after everything (p&I/taxes/insurance/home warranty/HOA) so it's been good for far and hope it keeps up until it's paid off

Wow, so you are a rockstar in here, nice to hear your success story, what is "BR"? Since Lake Forest is super close to IR, i might invest there now as well.

BR = Baker Ranch (located in Lake Forest).

 

[eyephone]

I know BR (Lake forest) is no Irvine in terms of Rental Market as we don't have the prestigious Irvine Schools, but BR has been doing really well in the Rental Market as well...When I listed my investment property there, we got 5 offers within 3 days, the final $100 over asking price as well as 3 month rent in advance.  The applicants all listed having difficulty obtaining a mortgage as a reason for renting...lots being not having enough reserves. 

I got one of the smaller houses in BR (a 4 bedroom) and I was able to rent it out for $3400-$3500 for reference and it's not even in Irvine.  I net $100/month after everything (p&I/taxes/insurance/home warranty/HOA) so it's been good for far and hope it keeps up until it's paid off

Wow, so you are a rockstar in here, nice to hear your success story, what is "BR"? Since Lake Forest is super close to IR, i might invest there now as well.

Idk about this guy.

 

[dream16]

I know BR (Lake forest) is no Irvine in terms of Rental Market as we don't have the prestigious Irvine Schools, but BR has been doing really well in the Rental Market as well...When I listed my investment property there, we got 5 offers within 3 days, the final $100 over asking price as well as 3 month rent in advance.  The applicants all listed having difficulty obtaining a mortgage as a reason for renting...lots being not having enough reserves. 

I got one of the smaller houses in BR (a 4 bedroom) and I was able to rent it out for $3400-$3500 for reference and it's not even in Irvine.  I net $100/month after everything (p&I/taxes/insurance/home warranty/HOA) so it's been good for far and hope it keeps up until it's paid off

Wow, so you are a rockstar in here, nice to hear your success story, what is "BR"? Since Lake Forest is super close to IR, i might invest there now as well.

BR = Baker Ranch (located in Lake Forest).

Thanks, i need to time the market really well this time, hoping for the 2018-2019 market adjustment of atleast 20%, the 7 year high and low cycle has to come back.

 

[Irvine Seeker]

I work for a direct lender and 401k only counts as reserves if you can borrow against it for a hardship withdrawal, many plan provisions will only let you take out one loan at a time and many plans (public school retirement plans are inaccessible until retirement) - for this reason the funds are ineligible as reserves.

Yes this is reasonable but even after submitting documents and contact information of our 401k plan manager of hardship withdrawal availability, big banks still wouldn't be satisfied and kept on asking for same documents for some reason.

Fortunately, for my case, an independent mortgage lender came though without asking for these stupid stuff.  I will write about the whole ordeal after I get my keys...