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30 Dec

Costa Mesa Income Property Investments

Posted by Colin

Costa Mesa Income Property Investments

Costa Mesa Real Estate- Triplex Investment

Costa Mesa Income Property Investments

There are lots of great ways to invest in Costa Mesa real estate.  Most prefer to own and live in the real estate that they purchase in Costa Mesa, but another way to build wealth is to buy income property- or in other words, property that produces income or cash flow for an owner.
The property that I just sold at 2229 Rutgers Drive is a great example of an investment in Costa Mesa Income Property Investments.  I will give you a little bit of background first, then I will dig into why this is such a sound investment in today’s economy.  This property was only on the market a short time, and was a bank owned REO property.  My client was looking at buying a small house, something like a 3 bedroom/ 2 bath home in the $350,000-$450,000 range.
Let’s look at the math on Costa Mesa real estate investments for 3 bed/2 baths:
Monthly rent received: $2500*(approx. going rental rate)
Purchase price: $400,000
Percentage down payment: 20% ($80,000) @ 5% interest
Monthly payment = $1717
Monthly taxes = $375
Ok, so adding the above figures together you get $2092/ month as an owner for your costs on the home (monthly mortgage + taxes).  If you figure rent is $2500, then your monthly cash flow is just above $400 per month.  Not bad for Costa Mesa real estate, eh?
Here’s where it gets better – in the case of 2229 Rutgers Drive, I showed my client this triplex instead of a single family home because it produces more income with only a slightly larger down payment.  This property sold for $560,250.
Work the numbers, and they look like this:
Monthly rent received: $3900 (this triplex has 3 2-bedroom units producing $1300 rent/month)
Purchase price: $560,250
Percentage down payment: 20% ($112,000) @ 5%interest
Monthly payment = $2400
Monthly taxes = $500
Net income/cash flow=  $1000
Remarkably different, huh? That is a difference of +$600/month in your pocket. Now of course each of these properties will need maintenance from time to time, and there are other little costs like that occasionally.  But considering the interest rates of savings accounts and other investments, this investment in Costa Mesa real estate is very savvy right now. The property on Rutgers drive will produce an annual return of almost 10%.

Think you might like to invest in Costa Mesa real estate? Call Colin Delaney at 714-743-9882 or email him to discuss what investment options are available.

Categories: Costa Mesa Income Units, Costa Mesa Triplexes, Just Sold Tags: Costa Mesa Income Property Investments

About the Author

Colin currently is the Principal Broker of GateHouse Properties which is located in Costa Mesa and serves all of the communities in Costa Mesa as well as the local coastal Orange County region. Colin also enjoys coaching his children's soccer and FNL Flag football teams, is an avid golfer and former professional tennis player. Colin can be reached at 714-743-9882 or via e-mail at Colin@GateHouseProperties.com

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About the Agent

Colin currently is the Principal Broker of GateHouse Properties and serves all of the communities in Costa Mesa as well as the local coastal Orange County region. Colin’s main business focus is in the City of Costa Mesa. Colin is also an expert in multi-family investments such as duplexes, triplexes, and fourplexes.

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