While it’s true that this type of property is typically more expensive compared to a single family home, the amount you can charge for rent is also at a premium. Financially the scenario looks like this – Sales price of the income property, minus your down payment equals your mortgage amount. Your monthly mortgage payment minus your rental income equals your cost to live there.
It’s not uncommon to see people use a significant down payment when purchasing an income property so that the remaining mortgage payment is covered by their rental income. Effectively this scenario allows the owner to live “rent free” in their own property. This is a simplified version used for example, I recommend having a mortgage professional help you determine what is best for your financial situation.
The demand for these Seal Beach properties isn’t slowing either. Since the beginning of 2014 there has already been three closed sales, one in escrow and four residential income properties available for sale. The closed sales were all 2 units with annual gross rental income ranging from $37,080 – $82,800.
The Seal Beach properties currently available for sale range from 2 – 8 units each. The annual gross rental income from each of these properties ranges from $36,000 – $107,040. Of these available properties, two are ideal for someone seeking to live in the front and rent out the back. First, is a Duplex with a detached front house and back rental unit, pictures and details can be seen at www.213eleventh.com. Next, is a beach close Triplex with a detached front house on 1.5 lots, pictures and details can be seen at www.1511ocean.com.
The purchase process for residential income property is different than buying a single family home. Most require you to make an offer prior to seeing the building so the owner doesn’t disturb the tenants without first knowing you are a serious buyer. For more information on buying Seal Beach income property, first consult a local, reputable Realtor.
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