Orange County Ca Multifamily

[Brad Rondeau]

Hello, I have been investing in Orange County single family homes for a while. In the midwest I can buy a house for $100,000 and immediately have a great positive cash flow. In orange county it's almost impossible to buy an single family home and have a positive cash flow.  The price of the home vs the rental price just doesn't work out.  I'm wondering about multi family units in Orange County.  For example is a 4-plex in Anaheim as good for investors as say a 4-plex in the midwest?  Can we expect a similar cap rate as say the midwest?  I've never thought about multifamily units but maybe it makes sense in Orange County?

[Karen Margrave]

@Brad Rondeau 

@Mehran K. and others may like investing out of state, and that may work for them. However; though Orange County doesn't have the low priced houses, and cash flow that other areas have, what Orange County does have is appreciation that the midwest doesn't have. Also, we have a very strong, broad based economy, whereas most areas across the country are dependent upon one or two industries, and have higher unemployment, meaning fewer qualified tenants and buyers.

The number one rule of real estate has always been LOCATION, LOCATION, LOCATION, very few places in the country can compete with Orange County. We have perfect year round weather, which opens the door for vacation rentals that can cash flow nicely, high demand, high rents, well educated work force, low unemployment, high quality of life (recreation, amusement, cultural offerings, sports venues, universities, medical care etc.). ALL of those things add solid value to property. 

Of course getting in the game here is much more expensive. However; if you can start with a condo in a well placed area and begin building, you're in!