All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Hard Money Lenders Insurance Contractors Investment Companies Build Your Team

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
ForumsArrowBuying & Selling Real Estate DiscussionArrowWould you do this "HouseHack" deal in Orange County, California??
  • Newest Posts
    • Newest Posts
    • Unanswered Discussions
  • Trending
    • Top Discussions
    • Trending Discussions
  • Browse Forums
Search Nova
Create post

Would you do this "HouseHack" deal in Orange County, California??

6 Replies

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
user profile avatar
  • Posts 360
  • Votes 239

Daniel F. Harb
ARRT, RT(R) / Rental Property Investor from Newport Beach, CA

posted over 3 years ago

Hello BP Members! Question: I am looking to HouseHack in OC, California, and here are the stats: Purchase price of $250K(ish), FHA with 3.5 down (@$8,750.00 Cash to close.), @$1,850.00 Mo Pmt. Incl. $250.00 HOA. I would rent the 2nd room for around $700.00(?) and my portion of my mortgage would be around $1,150.00. I don't mind my portion of the mortgage, my thoughts are when I move out and this will be a 100% rental, I don't imagine I would get more than $1,300.00~$$1,400.00 total rent. I would be at a negative $440.00 monthly.

I don't think just to get my "Househack" it would be worth it, right?  I would really appreciate all thoughts on this potential property.

Thank you very much in advance .

Cheers!  $$$ 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 150
  • Votes 65

Bill Larsen
Investor, Real Estate Agent from San Juan Capistrano, California

replied over 3 years ago

Hey Daniel!

Well my first thought is... there's a 2 bed condo in OC that rents for under $1,400?? Seems low. Anyways. If you like the location and the condo and want to live in it then i say buy it.  Eventually you could refi out of the MI.

Another option would be to find a 500k-600k SFR with 3 beds. You could rent out two of them @ $700/each and have no HOA. Your down payment would be more but I would think more of your monthly expenses would be less

Rotate Log in or sign up to reply
user profile avatar
  • Posts 95
  • Votes 45

Jerome Morelos
from Fontana, California

replied over 3 years ago

Hey Daniel, 

Did you include other expenses associated with the property such as repairs & maintenance, capital expenditures, property management, vacancy, taxes, insurance etc. within your analysis?

Rotate Log in or sign up to reply
user profile avatar
  • Posts 360
  • Votes 239

Daniel F. Harb
ARRT, RT(R) / Rental Property Investor from Newport Beach, CA

replied over 3 years ago

Hi Jerome M. No, I think by the time I finished writing that post, I was thinking "Forget it". Not only is it in a gang area in Santa Ana (Hence, the $250K price), but once I left and it was a full rental, it's doubtful that it would drive more than $1,400.00 a month rent. So, from the get~go as a full rental, I'm $400.00 bucks in the red, monthly. Forget it. 

Thanks for your input!  :)

Rotate Log in or sign up to reply
user profile avatar
  • Posts 360
  • Votes 239

Daniel F. Harb
ARRT, RT(R) / Rental Property Investor from Newport Beach, CA

replied over 3 years ago

Hello Bill Larsen! Yes, that exact condo has tenants in it now at $1,350.00 a month, but I spoke to a few Police Officers today about that area of Santa Ana and they said, trust us, you don't want to live there. You have to pack your Sig Sauer .45 just to be safe.

No thanks.  :)

Best to you! $$$

Rotate Log in or sign up to reply
user profile avatar
  • Posts 150
  • Votes 65

Bill Larsen
Investor, Real Estate Agent from San Juan Capistrano, California

replied over 3 years ago

@Daniel F. Harb bummer. but better to learn that before you buy than after! What's next?

Rotate Log in or sign up to reply
user profile avatar
  • Posts 360
  • Votes 239

Daniel F. Harb
ARRT, RT(R) / Rental Property Investor from Newport Beach, CA

replied over 3 years ago

Exactly @Bill Larsen ! I've been in OC for many years and I pretty much know of some funky areas. Great question , what's next! I am looking to purchase, it seems, out of area, and whether if is SFH, or Multi~Unit, or both, is yet to be seen. I am also looking OOS.

Have a great Saturday, Bill, and talk soon!  $$$

Rotate Log in or sign up to reply
  • 1
Related Resources Buying & Selling Real Estate Discussion
Start Your House Hunt Right by Asking These Questions First
Is Doorvest a Good Option for Real Estate Investors?
How to Choose the Right Remote Real Estate Market for You
Home Purchase Fall Through? Don’t Panic: Here’s How to Get Your Earnest Money Back
What Is Underwriting? Here’s What to Expect
Resources Read, see, and learn more!
Link Real Estate Investment Calculators
Link BiggerPockets Blog
Link Path to Purchase
Link Mortgage Loans
Link Find a Contractor
Link Real Estate Agents
Link Hard Money Lenders
Link Real Estate Listings

Top Contributors

Jay Hinrichs
Jay Hinrichs
Lake Oswego OR Summerlin, NV
8.79
Score
Ryan M.
Ryan M.
FL
7.96
Score
Matthew Irish-Jones
Matthew Irish-Jones
Buffalo, NY
4.95
Score
Russell Brazil
Russell Brazil
Washington, D.C.
4.31
Score
Mary M.
Mary M.
Portland OR
4.13
Score

Buying & Selling Real Estate Discussion Trending Discussions

  • Housing prices from 1986 to 2021
    19 Replies
  • favorite markets for new investors out of state?
    8 Replies
  • Stalled on buying my 3rd Property - How to push past?
    6 Replies
  • Coming up with a direct sale offer
    10 Replies
  • Sell or Keep or Cash out Refi
    16 Replies
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.