Selling vs Renting out

[Kings]

i'm on the board of my HOA and we certainly do report airbnb and other short term rental listings to the city.  our HOA management company, who manages multiple communities in irvine, does a search every month to ensure nobody in the community is violating HOA and city bylaws.  without divulging too much more personal info, i can tell you that my community does not have any listings shown on the map above.

 

[Burn That Belly]

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[Maserson]

Plenty of stonegate and a few Eastwood listings when I search. Too lazy to google translate the Chinese listings.

 

[WTTCHMN]

Plenty of stonegate and a few Eastwood listings when I search. Too lazy to google translate the Chinese listings.

My favorite Eastwood listing is this:
"Eastern Oasis Newport Beach Brand new property reside in the city of Irvine, the heart of orange county. Cozy home in safe community."

If OH can be the "Beverly Hills of Irvine", then Eastwood can certainly be the "Eastern Oasis of Newport Beach".

YF needs to add that to his tagline.

 

[Burn That Belly]

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[WTTCHMN]

Okay, I didn't realize if you zoom in much closer, there are more home listings. Plenty of airbnb listings in nearly all neighborhoods. Sorry misme, but you can't just single out one particular neighborhood. Airbnb is here to stay in all of Irvine.

I zoomed in and narrowed the window map by neighborhood and the count is as follows:

There are approx.
~30 listings in EW
~26 listings in BP
~12 listings in CVE
~38 listings in CV
~30 listings in PP
~7 listings in PS
~22 listings in SG
~49 listings in WB
~18-25 listings in NW
~22 listings in NWP
~7 listings in OH
~18 listings in LA
~12 listings in OakCreek
~75 listings in El Camino Real  !!!
~77 listings scattered around West Park as shown below.
~63 listings in IBC above the 405fwy.
~51 listings in IBC below the 405fwy.
~50 listings in an around University Park

All in all, there are over 300+ listings in Irvine. Clearly, the city of Irvine is not doing a good job of policing it. Or they simply just don't give AF!

Anyways, you get the picture...Personally, I would say WB is best for airbnb short-term vacationer or IBC near DJ. Having walking distance to WTC/DJ is a huge plus.

PS wins!  OCLuvr will be so happy.

 

[OCLuvr]

Yup... people buy to live here; sense of neighborhood

 

[usctrojancpa]

Wow, 30 Airbnb listings in PP?  It's one of the smallest villages out in Irvine. 

 

[Burn That Belly]

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[jajji]

I thought in CA, it only takes 90 days from filing eviction to getting a sheriff to show up at the door to forceably evict?

I think you're right. I had a brainfart when I wrote my post. She was working with the banks regarding evictions on delinquent homeowners, not renting tenants.

 

[woodburyowner]

Actually it turn out pretty good for me in the last 5 years.  The money from the last house went directly to S&P500 index fund and some AAPL appreciated way more than that house.

This comment is pretty surprising given that RE has gained 40-50% in the last 5 years.  I guess it depends where your last house was.  If it was in Irvine, I would be really surprised that you would have come up ahead with a S&P fund + AAPL (unless there was A LOT of AAPL in there) vs. holding onto the property and renting it out.  The greatest benefit with RE is that is highly leveraged so if the property gained 50%, your true cash on cash gain is amplified.

 

[bones]

Actually it turn out pretty good for me in the last 5 years.  The money from the last house went directly to S&P500 index fund and some AAPL appreciated way more than that house.

This comment is pretty surprising given that RE has gained 40-50% in the last 5 years.  I guess it depends where your last house was.  If it was in Irvine, I would be really surprised that you would have come up ahead with a S&P fund + AAPL (unless there was A LOT of AAPL in there) vs. holding onto the property and renting it out.  The greatest benefit with RE is that is highly leveraged so if the property gained 50%, your true cash on cash gain is amplified.

I was in a similar predicament with an Irvine condo.  It cash flowed negative - can?t remember the exact numbers but IIRC, I had to cover MR and the double HOA so I decided to sell and take the tax free gain. In the 5 years since, it?s appreciated about $75-90k above my selling price with most of that increase coming fairly recently.  I came out ahead selling then tax free + market gains versus holding and selling now - negative CF - taxes.  All without the headache of being a landlord. I know everyone on this board makes rental RE out to be the easiest thing ever but it?s not for everybody.

 

[bones]

Wow, 30 Airbnb listings in PP?  It's one of the smallest villages out in Irvine.

Gotta help pay that MR.  ;D

Too lazy to look through the listings but wonder if it?s bc there?s a lot of next gen units in PP.  Those are perfect to rent out.

 

[Liar Loan]

Nightmares.  I rented a 3,100 square foot house in Tustin to an attorney.  His wife left him and he was always late paying rent. I evicted him and he refused to pay  up $10,000 that he owed me.  Then he moved to Colorado, out of my legal reach.

Why would he be out of legal reach by simply moving out of state? Does a California service of process lose jurisdiction across state lines? Why not hop on a flight to Colorado for $99 SW wanna-get-away fare and serve him there?  ;D

Here's the way I look at it. 

Landlords very rarely recover lost rents from deadbeat renters.  It's basically trying to squeeze blood from a turnip.  Sure, you can get the judgement against the attorney relatively easily, assuming he doesn't use his attorney skills to stonewall you and drag the process out, but then how are you going to collect it? 

You can assign the debt to a collection agency, and hurt the guys credit, but even if they collect something from the deadbeat, net of fees you are only getting pennies on the dollar.  The most you can realistically hope for is to ruin the guys credit to make it harder for him to rent from the next guy.

So why would StarmanMBA want to hire an attorney, book a flight, and waste hours/days of his precious time pursuing that?

 

[Burn That Belly]

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[eyephone]

This is why tenant screening is key. (History: credit. Rental, evictions, criminal records)

 

[eyephone]

Nightmares.  I rented a 3,100 square foot house in Tustin to an attorney.  His wife left him and he was always late paying rent. I evicted him and he refused to pay  up $10,000 that he owed me.  Then he moved to Colorado, out of my legal reach.

Why would he be out of legal reach by simply moving out of state? Does a California service of process lose jurisdiction across state lines? Why not hop on a flight to Colorado for $99 SW wanna-get-away fare and serve him there?  ;D

So why would StarmanMBA want to hire an attorney, book a flight, and waste hours/days of his precious time pursuing that?

Because Starman is a man of principle!  ;D As am I. I will leave no stone unturned, go after the guy for shits n giggles. Yes, that includes ruining his credit a little bit.

I guess the only way to truly protect from a deadbeat tenant is to ask for first month's rent plus 3 months rent in advance. (illegal I know). Or a bigger security deposit. Then if they default on the second month, you can kick off the 90-day eviction proceedings but still have the 3 months of rent to cover the 90-day eviction period where he isn't going to pay.

I thought you can charge a maximum security deposit that is up to times the monthly rent.

 

[Burn That Belly]

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[eyephone]

Exactly Belly.

Using their fear logic of not being a landlord.
There are many business that write off Accounts receivable balances regularly. So should they fear not selling x product to customers?

 

[Burn That Belly]

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