Real Estate Investors
Dana Point
Savvy investors, looking for a safe haven for their assets and for long-term investment strategies, should consider the potential of income-producing properties in Dana Point in South Orange County, CA. Taking advantage of the dramatic price declines in the housing sector, investors can benefit from immediate returns and long term appreciation that other investments cannot produce.
In Dana Point, rentals of properties between 1,200 and 1,800 square feet generate, on average, $2,539 per month in rental income. These same properties have been selling for an average of $596,000 in the recent past.
Taking these as general assumptions, let’s look at the return on investment for a cash purchase.
Purchase Price: $596,000
| Line Items | Per Month | Per Year |
|---|---|---|
| Rental Income: | $2,539 | $30,468 |
| Expenses | ||
| Property Taxes | ($522) | ($6,258) |
| Management Fee | ($152) | ($1,828) |
| Insurance | ($67) | ($800) |
| Home Warranty | ($38) | ($450) |
| Totals: | $1,761 | $21,132 |
| Return on Investment: | 3.55% |
Notes:
- Property taxes are based on 1.05% of purchase price. No consideration was given for Mello-Roos or additional taxes;
- Closing costs were not factored into this example;
- Purchase prices and rental prices were based on actual averages as found by research in March of 2009;
- Vacancy, homeowners association dues, and other potential expenses were not considered in this example;
- All figures are for demonstration purposes only. Actual figures will vary based on the investor’s particular circumstances.