OC Condo for long-term rental?

Question

Hi everyone,

Would appreciate any insights. I currently live and rent in Costa Mesa. I think for work related purposes the potential for relocation is high in the next 1-3 years, but having lived in SoCal for 7+ years I always want to have a connection here.

My thought is to buy a condo 2/2 in the low 3's obviously live there and rent if I do relocate. If I break even on expenses and build equity that would be a win for me. Was thinking in the Costa Mesa / Santa Area.

A little about me - relatively high income with access to FHA and VA lending, but modest on cash due to grad school. Can do my own sweat equity!

Question 1 - Given this wouldn't be beach vacation rental any experience on short-term demand? Or would I have to just do standard long-term. Obviously, short gives me flexibility to work from home?

Question 2 - Any thoughts on the approach. I could afford higher, but rather save some cash / debt capacity for less expensive markets.

Question 3 - Any market considerations I should know about?

Thank you,

Brian

Twana Rasoul · Answer

@Brian C. Check in Santa Ana and Orange areas.  duplex's for around 600-700k ish...for multi family you can use rents from other units towards your income to qualify for a bigger loan.

Brian C. · Answer

what areas would you recommend for value for MF? @Twana Rasoul

Irina Shetty · Answer

I don't think there are places in the 300 in Costa Mesa.

Twana Rasoul · Answer

If you have access to VA Loan use that and purchase a 2-4 unit in the surrounding area, can't beat that strategy/loan type.