Investing in Newport Beach CA
I am interested to see what investors do in Newport Beach California. Specifically do investors buy and renovate Multifamily properties (Duplex’s, 4-plex’s) on the peninsula in Newport? I know it’s a flood zone but that is incredibly rare. Regardless I know that a majority of the peninsula is zoned for duplexes and multi family so does that mean there’s potential to build more units on certain properties. Is anyone familiar with any of these topics? It’s something I’m interested in getting into as a 20 year old still in college.
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Most of the Zoning there is R-2 (duplexes). As @Michael Ambrose said, they will require some capital to start off plus a good chunk of ongoing maintenance if you were to hold them. Most of the owners who purchase duplexes here do Summer/Winter lease terms. During the Winter they lease the property out to college kids and during the Summer the rent them out on a weekly basis for a significant chunk. The downside is that there is a lot of wear and tear from the constant move-in/move-out plus the addition of the salty air. Some people are renovating and converting to condos. In my opinion, it is too much hassle. It is more of a place for some owners to park their money and bank on the appreciation of the asset.