Good spots to invest in Orange County?

[Matt Mugs]

Looking for any information on good areas to invest in Orange County? Thanks!

[Dan H.]

I am going to assume you meant for buy n hold.

My view is OC, LA, San Diego, and San Francisco are all good/great RE markets but not for initial cash flow.  

ROI is dictated by value adds and appreciation. The appreciation improves the cash flow (Rent appreciation) as well as builds equity (property appreciation). Without a value add, you need to have patience for the appreciation to produce returns.

I believe the top 3 value adds are:

• Rehabs often accompanied by a refinance (BRRRR)
• ADU addition. The ADUs appraise below hands off construction cost so this should be used only were the hold is expected to be long
• Leverage under utilized zoning, possibly combined with the ADU rules. Is the lot zoned for 4 units but only has 1 unit?

Good luck