Tameko Tsunehara

Jacqueline is right that you will have a very hard time finding an SFR at this price, I think what should be emphasized is that in southern california condos and townhouses are not considered "less" good than a house (I mean they certainly can be but there are also a lot of people who prefer them and quite a few 'luxury' condos). I know that coming out of state where houses are hte norm people don't always realize that.

Also if you go to city-data.com you will read a lot of trash talk about santa ana. Santa ana has some beautiful old neighborhoods, its ghetto in comparison to the wealthier parts of OC, but compared to say, a ghetto in chicago, it doesn't even come CLOSE. We're really spoiled here, what we consider dangrous areas aren't really, compared to other places in the US.

Oh and if you have very flexible work hours, south county commutes aren't bad at all , but if you don't you're looking at 45 minutes from mission viejo -- its a short distance but everyone moved down there and now traffic is horrible. My boss drops off the kid at daycare in lake forest and then it takes about 40 minutes to get to wokr here in santa ana - but on a sat morning I can get from here to there in 15 or 20. - Tue Jun 3 2008, 16:01

I think vicki's answer is REALLY interesting.... because I hate the idea of paying someone to pick out my cabinets and countertop, whereas I DO care if the place has up to date wiring, plumbing, how old the roof is .... Actually I'm very picky about improvments, I don't much want to pay for any improvements that I don't like. I mean what if you put in granite counters but they're grey and I wanted black? or what if hte roof is brand new but its cheap and not going to last? I would rather shave the money you spent on that off the cost of the property and choose my own roofer and material. Pretty much true for anything. Upgraded windows are nice though and not too non standard. AC is nice too, If its already installed then I know it won't be a hidden cost (cost of installing ac can vary MADLY)

But I know other people who want to walk into a place that looks 'finished' and buy it, which seems to mean basic newer floors, new bland paint on the walls, and generically nice fixtures in the kitchen. - Wed May 14 2008, 15:30

South Coast Metro is a great place for rental property but I wouldn't hold my breath for positive cash flow just yet. For one thing, at 200k you're basically looking at 1br apartments, and I recently read an article (maybe lansner's blog?) saying that vacancy rates on 1brs are going up. Also what do you consider "Low" HOA? You should pretty much plan that you will be paying at LEAST 100/month (and that would be very low) and could be paying as much as 250 a month. My favorite community around there (in terms of "wow what a lovely place to live) is something like 330/month... That's on the high end of course.

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Yup it was Lansner: http://lansner.freedomblogging.com/2008/05/01/bad-economy-hi…

Of course this is just a general OC wide trend, South Coast Metro is still a very desirable rental area. I've seen a few places for sale that will MORE THAN LIKELY go for positive cashflow, but remember that its not a magic money making machine. You aren't GUARANTEED positive cashflow, you just have a shot at it.

So before you do this, make sure you can handle renting it for break-even, or even slightly negative if you need to. I mean hopefully this is just common sense, but I think we all saw a lot of investors in the last 5 years with no experience who thought real estate was a free money tree. It can be a solid and smart place to put your money, but unlike the last five years you aren't going to turn around in 6 months with a tidy profit. If you can afford to sit out making very little (if anything) for a few years (say 3) then I'd say there are many excellent prospects for you.

(By the way, you do know that south coast metro isn't a city right? Its a name people give to that area to make property values higher. Its mostly a part of santa ana and a little costa mesa.) Other places with good rent in North OC would be Coastal Huntington Beach -- a lot of young professionals (and not so professionals) like to live there because its affordable but close to the beach. In fact I moved from south coast metro to a place in HB 2 blocks from the ocean, because the 1br apartments there were 150/month less than the ones in "south coast metro". My commute increased about 10 minutes and I love that 150/month, but I also loved South Coast Metro.

Love, Me (a soon to be first time home buyer -- well, townhouse buyer) - Wed May 14 2008, 15:14