Is Real Estate Investing In Your Future?

There is a silver lining in the current Real Estate market that is starting to peak through the clouds and Single Professionals are taking notice. If you have ever thought about taking the steps to become a Real Estate Investor there are some excellent opportunities currently available in South Orange County that have not been available for years. Below is a simplistic, real estate investment scenario for the first time investor.

Assume you are purchasing a 2 bed/2 bath condo in Rancho Santa Margarita (yes, at the time of publishing this home is available) at $241,000 and you have 20% to put down and you will be utilizing a 30 yr. fixed at 6.5%

Sales price = $241,000
Down Payment = $48,000
Loan Amount = $192,800
Estimated Total Monthly House Payment
Principle & Interest = $1, 218, 63
Taxes = $255.00
HOA Fees = $256.00
Total = $1,729.63
Rental Factor:
Estimated Monthly Rent = $1350.00
Estimated Negative Cash Flow = ($330)
Appreciation Factor 5% x 5 years – Sale price of $309,300
Profit Scenario:
$309,300 Estimated Sales Price
$(21,650) Estimated cost of sale at 7%
$287,650 Net Proceeds
$(180,480) Estimated Loan Pay-off
$107,170 Net Sale Proceeds before Taxes
$(6,275) Estimated Capital Gains tax at $15%*
$100,895 Net Cash Out
($53,200) Cash Investment - $48,200 Down + $4820 Closing Cost
$47,875 Net Profit

Return: Divided by $53,200 Cash in – 90.3%

Annualized Rate of Return: $53,020/5 = 18.1%

You may be thinking not in this market when it comes to appreciation but let’s not forget historically what percentage homes have appreciated at. In Orange County, for the last 39 years the average appreciation has been 7%. More importantly if you want to become a true investor then there are characteristics that you must have in mind and that are Strength and Patience’s.

Now there are several other aspects of investing in real estate that can even make this more attractive, which include additional tax write offs, deprecation, etc that you should consider but we went fairly conservatively with the loan amounts and rental amount. Our goal here is to provide you with a simplistic view of what to consider. A prudent investor should independently verify the data and proceed only after consulting an attorney, accountant or financial planner of the buyer’s choice.

Kelly Turbeville is one of South Orange County premier Realtors® focusing in the Saddleback Valley and the communities of Lake Forest, Portola Hills, Foothill Ranch, Trabuco Canyon, Mission Viejo and Rancho Santa Margarita. Whether she’s helping a first time buyer accomplish the goal of homeownership, or coaching a homeowner on how to use their equity to step up into a nice home or use it to buy an investment property or finding exclusive properties for the high end consumer. Kelly is committed to making it happen. So if you’re considering selling or buying a home in Saddleback Valley, call Kelly to schedule a free consultation. Whatever your dream, with Kelly at your side, It’s Possible!

The above information is provided as a courtesy and is deemed reliable but not guaranteed.

Buying Smart In Today's Changing Market - Home Buyer Seminar

Ok, we know whenever you bring up the topic of real estate, you get a 1000 different answers so we have put together a great Home Buying Seminar with all those questions in mind. Whether you are looking to buy your first home or are a move up buyer or maybe considering a vacation or investment property then you won't want to miss this seminar.


This seminar is designed specifically to get you the answers you have been looking for to questions such as

Is it truly a buyers market?
Can I get a loan?
Help I think I might loose my house?
Is the market a good investment market?

This seminar is filling up fast so make sure to contact Kelly to reserve your Free tickets.

Kelly Turbeville is one of South Orange County premier Realtors® focusing in the Saddleback Valley and the communities of Lake Forest, Portola Hills, Foothill Ranch, Trabuco Canyon, Mission Viejo and Rancho Santa Margarita. Whether she’s helping a first time buyer accomplish the goal of homeownership, or coaching a homeowner on how to use their equity to step up into a nice home or use it to buy an investment property or finding exclusive properties for the high end consumer. Kelly is committed to making it happen. So if you’re considering selling or buying a home in Saddleback Valley, call Kelly to schedule a free consultation. Whatever your dream, with Kelly at your side, It’s Possible!

The above information is provided as an opinion and is deemed reliable but not guaranteed.

Home Buying and Selling Articles by Kelly

• Top 10 Mistakes Home Sellers Make In South Orange County
  First Time Home Sellers – 15 Questions to help you find the Right Agent
  Home Sellers Maybe Now Is Not The Time To List
  Sorry Realtors, you might not like this - Buyer's Get A Buyer's Agent
  Those Who Own & Those Who Don't
  Mortgage Meltdown - Just Breath, Orange County, CA.
  Property Tax Assessment Appeals = $$ Back