Should You Consider Buying an Owner Occupied Rental Property in Orange County

For some people, purchasing an owner occupied rental is an incredible situation. You can turn the home you live in into an income producing asset!

However, just like with any investment, there are some cons to consider as well. If you are thinking about buying an owner occupied rental property in Orange County, read on to learn more about some of the pros and cons!

Pros and Cons Of An Owner Occupied Rental Property in Orange County

The Pros

Have Other People Pay Your Mortgage

In essence, you will have other people paying your mortgage for you. To get an FHA loan on the property it can only have up to 4 units. However, if you have done your math ahead of time, the rent you charge for the other units should cover the mortgage on the property and then some. It is a way to own an investment property without really paying for it!

A Smoother Financing Process

Typically, you will have an easier time obtaining financing when purchasing an owner-occupied rental. Purchasing a single family rental, or larger building, with many more units will require specialized loans.

Property Pride

Because you live there, your tenants are more likely to take good care of the property. They are not going to leave a mess in the common space or cause damages to the property. In addition, they are less likely to have loud, late-night parties if you are in the vicinity. By fostering a more respectful environment, your tenants will be happier over-all. Living in a building with great neighbors is a perk for any renter.

You Can Manage On Your Own

Considering you will likely have 4 or fewer units, handling the property management side of things shouldn’t be too difficult. Hopefully, you will have great relationships with your tenants, so you can kindly and promptly be alerted to any problems. Collecting rent is easier… they can’t hide from you if they ever want to come home! Plus, physically being on-site makes all management much easier.

The Cons

You Might Not Get Any Peace

Contacting you directly might become TOO convenient for some tenants. If you have a difficult tenant living in a unit they can end up bothering you day and night with their problems. Living offsite will give you a little space between you and your tenants. Overall, because of your role with the property, living in it may not allow you much privacy. Additionally, conflicts of interest can arise should you form a friendship with one tenant and not another. Make sure you set your boundaries and keep things all business with everyone who lives there.

They Might Not Want To Live By YOU

Whether you are renting or buying, you want the place you live to feel like it’s yours. People don’t want to feel like they are living under someone else’s roof. They do not want to feel as if they are being watched, monitored or as if they cannot relax in their own space. As a tenant in an owner occupied rental, your tenants might feel more like they are moving back in with mom and dad!

You Might Have A Hard Time Reselling

Statistically, investment properties and multi-family units take longer to sell then their single-family counterparts. There is simply more demand for single-family homes. If you are looking for something more temporary or with less commitment, you might consider a single-family home as opposed to a multi-family building.

Are you interested in purchasing a property in the Orange County area?

Whether you are looking for a single family or an owner occupied rental, we are here to help!

Send us a message or give us a call to let us know what you’re looking for! 949-625-4533

Joe

Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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