Investment property near Disneyland (apartments, rental, insurance)

[livinfairfax]

Thinking of 2 bed 2 bath. Anybody recommend any particular areas?

[Electrician4you]

You're going to have a pretty good competition issue due to the amount of resort hotels in the area. I'm assuming you're looking at a BnB situation?

If it's a full time rental the area around (once you get out of the Disney/resort area) it's imo not high end. You'll get it rented as pretty much anything in IC rents insanely fast.
Lots of apartments for the area also and at 2/2 you're in direct competition with them.

[CaliRestoration]

What's your carrying cost? What's your profit?

[BB_210]

You're going to have a hard time finding something that will make you cash flow positive.

[isellsocalhomes]

If you are able to purchase all cash, purchasing an investment property is a great idea to build long term wealth. But like others said, competition is high, especially since the market is flooded with investors.

[payutenyodagimas]

Originally Posted by isellsocalhomes

If you are able to purchase all cash, purchasing an investment property is a great idea to build long term wealth. But like others said, competition is high, especially since the market is flooded with investors.

dont think you can make a good returns if you purchase in cash. if you can buy a unit for 300k and rent it for 1500/month, that only gives you 6% return. and prop tax, insurance is not even included in the comp

[OCBruin]

since rates are still so low, probably makes sense to borrow and leverage instead of all cash?

any restrictions to airbnb in the area? I haven't been following, but I can see airbnb turn > 6% return easily (if no city oridnances against short term). Demand for DL is still so high, ticket prices, annual passes, all seem to go up every now and then

[Electrician4you]

Originally Posted by payutenyodagimas

dont think you can make a good returns if you purchase in cash. if you can buy a unit for 300k and rent it for 1500/month, that only gives you 6% return. and prop tax, insurance is not even included in the comp

It will rent for well over 1500 if it's a SFR. Probably around 2-2200.

Originally Posted by OCBruin

since rates are still so low, probably makes sense to borrow and leverage instead of all cash?

any restrictions to airbnb in the area? I haven't been following, but I can see airbnb turn > 6% return easily (if no city oridnances against short term). Demand for DL is still so high, ticket prices, annual passes, all seem to go up every now and then

All cash is great to use as the initial offer. You get leverage because you (can) have very few contingencies. This way you can offer less thus saving money. Then you do a refi for 80% LTV and you walk away with most of your money back in your pocket. And if the property gains value you may walk away with ALL your money back in your pocket. You might find someone who will do a 100% refi. I don't know if they do that anymore but lenders are starting some hocus pocus loans again. The risk or I should say a majority now is transferred on the bank. You basically become the middle man but have all the advantages. And eventually the property gains value you can still pull equity out and/or eventually (if you don't refi to keep pulling the equity out) it will be paid off and then it's all cash flow.
So all cash isn't a bad way to get in it if you have it and don't like the stock market/investing but still want some shelter for the money. Way I see it is everyone needs a roof over their heads.

[BB_210]

SFH for $300k in OC? Lol. You're looking at double that for the basic home in a mediocre area around DL.

[payutenyodagimas]

Originally Posted by Electrician4you

It will rent for well over 1500 if it's a SFR. Probably around 2-2200.

but how much would it cost? if you rent the max of 2,200, to get a 6% return, your SFR should only cost $440k. don't think that kind of house is still available in that area. maybe in 2010, you could get 300k around DL but that was 7 yrs ago.