All Forum Posts by: Hannah Noble

I found a 2bd 2ba condo in southern California (orange county area) in a very desirable area, minutes from the beach and a downtown area. It is definitely a fixer upper (mostly cosmetic), but has a lot of potential for add value. However, the down side is that it is on leased land (lease ends in 2057). It sounds like this lease keeps being renewed and most likely will in 2057. The downside is the lease will continue to go up as it is renewed.I am not very familiar with making investments on leased land, but doesn't sound like an ideal situation for a REI purchase. I know that it really affects the appreciation and re-sale value on it since you don't actually own the land.

What intrigues me about it....

This condo is goingg for half the price of similar condos in that neighborhood that have been somewhat updated and down the street from small homes and condos that almost triple in price.

Background on the condo complex that is on the leased land...

There was a 1bd 1ba in this condominium that was recently upgraded and sold in September for about $10,000 more than the one I am looking at. Another one that is somewhat upgraded and same layout (2bd 2ba) that is currently on the market for 140k more than the asking price on the one I'm looking at, but has been on the market for a while (most likely because it is priced too high with the land lease and isn't fully upgraded). A few years back an upgraded 2bd 2ba with the same layout sold for about 85k more than the price mine is currently listed at.

Because of the land lease it doesn't sound like something I would hold onto for too long because I am not going to appreciate like other properties in this area due to the land lease. However, may be one that could be a live in flip kind of idea. However, just unsure of how the land lease will effect buyers in 2-5 years, even if it is upgraded, in a good location, and listed well below average condos in that area.

Would love any thoughts or experiences anyone has had with land leases, especially in areas with high appreciation, desirable living conditions, and any thoughts about a purchase like that with everything that is going on in the world right now with our economy.

My name is Hannah and I am a newbie in the REI world. I am wanting to start with a house hack and live in the Orange County area. I am trying to get a good idea of what I should plan to save for, what I could afford with my W2 job, etc. before I seriously start looking. Does anyone have a resource or way that they get a good idea of how much house they can afford with their income and credit that is somewhat accurate without having to do a full inquiry?

@Stephen Tanquary thank you for your input! I totally agree with everything you said and think it is a great way to get my feet wet, even if it isn't cash flowing in the way the traditional house hacks are. It is encouraging to hear you guys are making it work! Thank you.

@Lee Ripma that is a great outlook on it! I agree here the numbers don't always make sense, which is why I would have to do something like rent by room or what not for a while to offset my rent a little, but open to learning about all the different ways to invest and what works best for me! Thank you for your advice and experience! I appreciate it!

@Steve Morris thank you for the advice those are all great things to keep in mind and the PDF sounds like a great resource for myself getting into apartments!

@Jacob Repreza thanks Jacob! Agreed cash flow most likely wouldn't happen, however like you said not terrible since my rent could still be reduced and Orange County will hopefully be an area that will appreciate. Out of state is also a great thing I want to get into once I feel more comfortable with it, thanks for your advice!

@Matt Guignon thank you, that is great advice. I agree the more education and familiarity I have with all of it and the market I am looking into will help ease those fears. I will keep your contact for when I start looking into different markets and learning more about areas such as yours. Thanks again for your help!

@Drew Busbee yes agreed, my first house hack down here in Orange County I would most likely to rent by room and more to offset my rent and get my foot in the door. I am definitely looking into doing out of state investing eventually and would love to hear any experience and resources you find in other markets or in LA.

@Matt Guignon I completely agree! From knowledge of others doing OOS investing having the right team is crucial. OOS investing is something I'm definitely looking into doing in the near future possibly after my first house hack here in Orange County. I am starting to look into different markets to see where the numbers would make sense and there would be cash flow. I know some that have had sucess in the midwest and would be interested in learning more about those markets. How far usually are your investors from the properties they are investing? If they are across country, but have a good team in place does it seem to work well for them still being so far?

Thanks for your help!

Thanks @Account Closed I agree. This area won't be a great area for cash flow in a house hack, but more of a good way to get started and cover some of my rent to help me in future investments. Thanks for your help!