Currently own these 3... what would a PRO do?

3 Replies

Loving BP and blown away by all the wisdom here! My husband and I became landlords without  becoming investors (by buying new homes, and renting out the others). Code name: we knew nothing.  We are now trying to turn this around and become more savvy investors!  Loving the potential for greater retuens/cashflow out of state... and hating how little our return was on these. 

Here are the stats... cash out/1031/heloc/rehab/other?  

#1:  value: 360-390K, owe 160K. Rents (below market) for 1750/mo. Long-term tenants (9yrs)... Market rent around 1950, up to 2150 w improvements. Zero maint/repairs for 2017... low maint tenants, built 2002. 

#2: value 450-460K, owe 300K. fairly upgraded "Executive rental" rents for 2400. (Very High end of market).  Before maint/repairs (currently turnkey) and assuming zero vacancy, a LOSS of $500/mo. Excellent schools, well appreciating area. 

#3: newly inherited 1970 OC home. Value 650-700K. No mortgage,  rents for 2450. Constant stream of repairs, and not local, so $$$ (and poor) property management.  Since its newly inherited, no tax implications to 'cash out' and sell. Might have potential as a flip home, as most is original 1970. 

Would love opinions! 

What are the laws for Air BNB in OC?

The OC is great place to visit but as far as a rental you would most likely end up with very needy tenants. I had a friend rent out his first house in the OC but sold it because tenants were a bust.

Option two: flip the OC house and take that cash to invest in a class B neighborhood.

@AnthonyRodriquez we hadn't considered  airbnb! Its a short drive to both disney and knotts, so we will check into it. 

Our current tenants are exactly as you described. 

@Michelle Jarreau

It looks like you are getting less than 1% rents on all your properties. Not surprising since these properties are located in California.

If the OC property was recently inherited - The tax on sale may be minimal.
$650,000-$700,000 can go along way in other parts of the country.

Basit Siddiqi, CPA
917-280-8544

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.