It's a crap return if you buy at $460k in 2020.I'm guessing the property has appreciated to the point that the sellers are now sitting on a pretty low ROE, and are trying to cash out at the expense of unsuspecting buyer, so that they can deploy their capital more profitably.Apples and oranges, I'm afraid.

One was bacon,lol, the fruit breakfast really threw me off (teasing).

Currently a nomad in Orange County, and looking to relocate since CA seems expensive for a newbie. 

@Michael Obedoza welcome to BP in Orange County.

It's akin to being afraid to go to the store because you're scared of the prices.You're also comparing apples to oranges.

Get rid of the existing tenants that are most likely paying below market, poorly screened, and bad for the business.I would pick 1-2 rentals that are "low hanging fruit" and easy to renovate.

The orange bars show the estimated CapexThe blue line shows the % of rent that I am using for that particular rent price. 

Property details:1905 E Adams Ave, Orange, CA 92867Purchase price is $839,500 - Regular 20% down over 30 years 5% interestAVG closing cost $5,000ARV $839,500Repair cost 50,000 - Property looks in decent condition but i just wanted to factor in some repair cost plus Yard need TLC. 

The tree keeps growing and producing more fruit(money) over time and you still have the tree which is likely worth more than when you acquired it.You have to make sure it is watered and fertilized and maybe pruned occasionally.

My grandfather owns a unique piece of property in the heart of Orange County.