As a real estate agent and investor I have always believed that modeling is a fantastic way to achieve success. This property in Costa Mesa is a great example of a property that recently sold that will make a great investment for the lucky purchaser. I have other properties just like this one ready for value buyers or investors! Costa Mesa is well located between Newport Beach and Huntingon Beach. It is close to great shopping, fantistic beaches, and both the 405 and 5 freeways. Moreover, it has a strong rental market. As you can see below, the average 3 bedroom 2 bathroom home in Costa Mesa leased for $2642 and in 27 days and for $1.81/ square foot.
Moreover, the rental rates are solid at $1.81/ square foot and the properties tend to lease out quickly. Making this area a prime area to watch for investors and buyers looking for properties at or below rental parity.
This REO sold for $292,500, closed escrow on January 14th, and will most likely lease quickly for $1.60/sq foot, around $2000/month. Rental parity would be a rent rate of $1700/month!
The Irvine housing blog has a fantastic rent versus own calculator. Using this calculator further demonstrates this properties value.
RentVsOwnulator™
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Created by irvine_home_owner
According to the Irvine Housing Blog Calculator a home that will rent for $2000/month should be selling for around $341,923. This property sold at nearly a $50,000 discount compared to the IHB calculated estimated purchase price.
Millionaire's will be made during this economic down turn, do not miss out on the great opportunities for investors and regualr buyers alike. As a full time real estate professional I come across opportunities every day, do not hesitate to contact me. Visit my blog at http://orangecountycaliforniarealestate.blogspot.com/ for more information on todays real estate market.
