All Forum Posts by: Thomas Lorini

A lot of people say you can’t find strong flips in Orange County anymore—here’s proof that you still can.

This property in Tustin was purchased by my client for $1.5M. After a full renovation and repositioning job it’s now listed for $2.29M. That spread shows there are still solid opportunities in this market when you know where to look.

📍 13762 Palace Way, Tustin, CA – Full Listing Here

Orange County continues to be one of the most desirable markets in Southern California. With high demand, limited inventory, and strong exit prices, flips and value-add deals can still pencil out—if you have the right team and the right strategy.

I work with investors and home owners to identify, acquire, and execute profitable opportunities here in OC and across SoCal. 

If you’re interested in flips, long-term rentals, personal residency or scaling into multifamily, I can help you position yourself for success.

Reach out!

@Conor Kelly I have several cross border brokers I can refer you. Send me a dm and I'll share their contacts. 

     Hey Muhammad, based on those numbers couple things im seeing:

• Gross Rent Multiplier: about 18x, which is high compared to Texas or Midwest standards
• Cap rate: If expenses are roughly 35–40% of gross ($48–55K), NOI might land around $80–90K, which puts the cap rate in the 3.2–3.6% range. That is typical in California but lower than out-of-state.

• Financing: 30 percent down ($750K), 5.5 percent rate on a 7-year ARM. Payment is about $10K per month. With taxes, insurance, and reserves, cash flow will likely be slim or negative.

Why Investors Still Buy in California

• Long-term appreciation has historically been strong, especially in good school districts.

• Owner-occupying one unit can make sense if there is also a lifestyle benefit.

• Risks to Consider

• California is more tenant-friendly, so check local rent control and eviction laws.

• The 7-year ARM means you will need to refinance or reset later, which carries interest rate risk.

• Cash flow may be weak or negative if you have vacancy or major repairs.

• Moving capital into a high-cost, low-yield market shifts your portfolio balance away from cash flow.

Active vs. Out-of-State Strategy

• A California fourplex offers lower yield but stronger appreciation potential and lifestyle benefits if you live there.

• Texas single-family rentals provide higher yields, more predictable monthly income, and landlord-friendly rules.

It really comes down to your personal goals. If income and scalability are the priority, continuing in Texas may make more sense. If you want long-term appreciation and the lifestyle benefit of living in one unit, the California fourplex could fit, as long as you are comfortable with tighter cash flow.

Questions back to you:

• What is your current priority: income or appreciation?

• Do you want to stay more passive with turnkey properties or take on an owner-occupied multifamily?

• Have you run numbers with projected rent growth, property taxes, and reserves?

Lets setup a time to talk here is my calendlyhttps://calendly.com/thomaslorinirealestate/discovery-call

 Will do! 

Sounds good lets setup a time to talk here is my calendly https://calendly.com/thomaslorinirealestate/discovery-call

@Karan Kwatra

Windsor is still on my radar, I still own properties there and it can be a decent market if you buy right, especially for certain duplex/triplex setups.

That said, a lot of Canadian investors I know have branched out into Calgary and Edmonton over the last few years for better cash flow potential. Both have strong rental demand and are benefiting from migration from other provinces, though they can be more cyclical due to their ties to the energy sector.

Overall, the Canadian marketplace is still relatively small compared to what’s available south of the border. Being a dual citizen, I’ve been investing in the U.S. for years, and I’ve helped many Canadians make that jump — it’s not nearly as difficult as people think once you understand the process.

If you (or anyone else reading this) are curious about how to get started in U.S. markets with stronger cash flow and more options, feel free to reach out. I mentor Canadians on how to structure, finance, and operate investments in the U.S., and can walk you through the steps.

@Dennis Kim

Totally get where you’re coming from — this is a super common dilemma in SoCal with how prices are.

The main trade-off you’re weighing is time in the market versus monthly payment comfort.

If you wait 2 years for 20% down, you may avoid PMI and have a lower payment from day one… but the risk is that prices (and possibly rates) could change in that time. Even just 3–4% annual appreciation on a $700K home is $21K–$28K a year — so in 2 years, that’s potentially $40K–$50K more. That could wipe out some of the savings from the bigger down payment.

On the flip side, going in with 5% down means you’ll have PMI and a higher monthly, but you’ll start building equity sooner and "learning the ropes" as a homeowner right away.

Also PMI isn’t forever, with appreciation and paying the loan down, you can often drop it in a few years.

Here’s a quick example using today’s rates (~6.5% for conventional 30-year):

Scenario 1 – Buy now with 5% down ($35K)

• Loan amount: $665K
• P&I: ~$4,205/mo
• PMI: ~$250/mo (estimate)
• Total (P&I + PMI): ~$4,455/mo

Scenario 2 – Wait 2 years for 20% down ($140K)

• If price stays $700K: Loan = $560K → P&I ~$3,544/mo (no PMI)
• If price rises 4% annually: New price ≈ $756K → Loan = $604.8K → P&I ~$3,826/mo

That difference in monthly payment might not be as dramatic as it first seems once you factor in possible appreciation.

If it were me, I’d run these numbers with realistic appreciation, your actual savings rate, and see where PMI removal might happen. Sometimes the “buy sooner and adjust later” route works better, especially in competitive markets like SoCal.

I’m local here and work with buyers in this exact spot all the time, happy to run the numbers with you and show some real examples so you can see which path feels best.

I've gone this route several times using bridge money to acquire my buildings usually around 70% ltv and they would fund 100% of the initial rehab scope.  I refi out of that in less than two years but it definitely helps with less money upfront. However the burn rate is considerably high, really needs to be considered well when underwriting and keep a close eye on during the value add stage.  

Hi there! Looks like we share some similar paths—I'm based in Orange County, where I help local clients with flips and small multifamily properties. I also invest in apartment buildings out in Cleveland, Ohio ...doing BRRRs buying in the 50k-60k per door range with ARV in the 80k-90k.