Orange County Real Estate Success

Had a great meeting last week with a young investor – he’s decided its time to buy his first investment property!  Investing in real estate doesn’t have to be difficult and complicated, especially in this market.  This 30-something noticed that he could get a home cheaper now than when he bought his first home 6 years ago, and he also noticed that he may be able to break even on it!  Hmmm…that got him thinking about investing in real estate…something his father was always talking about.

To confirm his suspicions, he had me pull the rental rates in Mission Viejo, San Clemente, Aliso Viejo, Lake Forest, and Laguna Niguel.  All cities averaged in the $2400-2800/mo range for 3 bed properties 1500-2000 square feet.   (Attention renters, that means you can BUY cheaper than leasing right now)

After that, we went back to his lender and confirmed that if he put down 3% on a Fannie Mae loan, his payment for a property around 400K would be approximately $2000-2200/mo.  Interest rates are THAT good right now 🙂  Exciting news – he can IMMEDIATELY cover the spread with a tenant, even with a gardener or a small HOA!

To put the plan in action, this week we’ll go looking at detached properties in the above cities under 400K.  There are actually a lot of properties for him to choose from right now, believe it or not.  54 if you’d like the exact number.  We’re really excited to get such a young investor going in such a sweet market.  I asked him if he’s read “The Automatic Millionaire Homeowner” by David Bach, but he hasn’t yet.  I let him know he’s already implementing the concepts within the book – what a smart cookie 🙂

Real Estate Investing Can be Easy

Investing doesn’t have to be really complicated or difficult – it just needs to be done with a long term plan and strategy.  This investor’s long term plan is to have someone ELSE pay off his 2nd property, and then when he and his fiancee decide to settle down and have children, use some of the ‘extra’ he is making to enjoy an upgrade of his own.

If you have any questions about Orange County real estate investing, don’t hesitate to contact us.  Of course, we have the spreadsheets that will do the complicated numbers and math if you want them.  But sometimes, its just logical and easy.  How do you like to invest?  What formulas do you use?  Comment below or tweet @weeksteam or @angieweeks and share  your strategies!!