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Purchasing Income Properties


  1. Define Your Investment Goals

  2. Identify Your Requirements

  3. Know Your Financial Readiness

  4. Work With an Investment Property Advisor

  5. Develop a Purchasing Strategy

  6. Contact us to begin the process


Purchasing real estate is an effective long-term investment strategy

There are several types of residential income-producing real estate, each offering different levels of revenue potential and carrying varying degrees of risk.

The most basic of these types of real estate include:

  • Duplex (two units)

  • Triplex (three units)

  • Fourplex (four units)

  • Rooming house (many rooms with shared kitchens and bathrooms)

  • Low-rise apartment building

  • Mixed-use commercial and residential

  • Properties that need to be fixed up for resale

Whether you are an investor who is looking to purchase a property that nets you a profit each month or a home buyer who wants to find a smarter way to bear the cost of home ownership, we have the information you need.

Buying Southern California Income Property as an Absentee Investor

Why invest in Southern California real estate that you will not live in?

  • Cash Flow: Rental incomes generate positive cash flow - the monthly net proceeds after all expenses and carrying costs on the property.

  • Leverage: Income properties allow for positive leveraging - a situation where the yield to an investor exceeds the overall rate of return that would have been realized on a property had no financing been put in place.

  • Return on Investment: The intention to achieve a strong R.O.I.- the dollar amount returned on an initial cash investment expressed as a percentage.

  • Capital Appreciation: The potential for capital gains if the property can be sold for more than was paid for it.

  • Tax Benefits: Potential for tax benefits by writing off mortgage interest against income. Also, capital gains on reversion may be taxed at a lower rate than other forms of income.

  • Tax Benefit Potential: Gained by writing off mortgage interest against income. When you sell, capital gains may be taxed at a lower rate than other forms of income and there may be tax exemptions if the property is the principal residence.

  • Beat Inflation: Land becomes more valuable every year. As your property appreciates, it can provide a good hedge against inflation.

Buying Owner Occupied Income Property in Southern California

Why choose to own and live in a building with tenants?

  • Cash Flow:  Rental incomes generate cash flow from other units in the building. That income can lower or completely offset property expenses and carrying costs.

  • Location:  Income properties may allow individuals to live in neighborhoods that they may otherwise not be able to afford by reducing the monthly carrying costs of mortgages.

  • Accommodations:  Inhabiting an income property may allow individuals to live in a larger or more luxurious unit that costs less than if they were renting the same unit.

  • Mortgage Eligibility:  A lender in assessing eligibility for a mortgage may use the income from a property and allow buyer to purchase a much larger property..

  • Capital Appreciation:  The potential for capital gains if the property can be sold for more than was bought.

  • Tax Benefit Potential:  Gained by writing off mortgage interest against income. When you sell, capital gains may be taxed at a lower rate than other forms of income and there may be tax exemptions if the property is the principal residence.  Also, you may be able to get a depreciation benefit on the rented portion of your property (check with you tax advisor).

  • Beat Inflation:  Land becomes more valuable every year. As your property appreciates it can provide a good hedge against inflation.

  • Gain Experience:  Managing properties and tenants in Southern California or any other place requires many skills including negotiating, background checking, advertising and marketing, contract writing, escrow management, handyman, and many more.  Starting with a property that you live in is a great start and you can be "on top" of things.

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Information throughout this site is deemed reliable but not guaranteed for Aliso Viejo, Capistrano Beach, Corona Del Mar, Dana Point, Laguna Beach, Laguna Niguel, Monarch Beach, San Juan Capistrano and Newport Coast properties.  By submitting your contact information on any form on this site,  you are consenting for The OC Coastal Group  to contact you even if your name is on the Federal "Do Not Call List".

The information throughout this site is deemed reliable but not guaranteed and is for the consumer’s personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumer may be interested in purchasing. Any information relating to real estate for sale referenced on this web site comes from the Internet Data Exchange (IDX) program of the SoCalMLS®. This web site may reference real estate listing(s) and / or closed sales held by a brokerage firm other than the broker and/or agent who owns this web site. This site and it's contents are copyrighted and may not be copied, reproduced or distributed without the express written consent of The OC Coastal Group.

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The OC Coastal Group are realtor specialists in Dana Point real estate, Monarch Beach real estate, Laguna Beach real estate, Laguna Niguel real estate, San Juan Capistrano real estate, San Clemente real estate and Aliso Viejo real estate in Coastal Orange County, California & surrounding South Orange County, CA realty including coastal golf course homes, beach properties, gated communities, 1031 exchanges, investment opportunities, income properties, ocean view estates, houses, condos & townhomes.


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