The city of Santa Ana serves as the seat for Orange County, CA. It is also the second most populous city in the county. According to the 2010 U.S. Census, it had a population of 329,427 at that time, which means it was the 57th most populous city in the country. Located in the south of the state, next to the Santa Ana River and just 10 miles from the coast, the city, which was founded in 1869, is part of the Greater Los Angeles Area. This metropolitan area has 18 million residents and is considered to be the second largest in the country. Additionally, Santa Ana has been estimated to be the 4th safest city with more than a quarter of a million residents in this country.
Income property is the type of property that people purchase and sometimes develop to enhance its value. The goal is to rent or lease the property until it appreciates in price, after which the investor sells it to get the profit. Income property is often commercial, although it can also be residential. Meanwhile, with regards to the latter, financial experts warn about those properties that are rented out. For these properties, higher interest rates than owner occupied mortgages can be asked, because they are classed as high risk mortgages.
Santa Ana Income property for Sale & Lease – Should You Buy or Lease?
If you are interested in income property, to be used as an investment or for construction or some other purpose, you have two broad choices available to you and these are buying or leasing. There are pros and cons to both of these options.
Looking first at buying income property, the pros include the fact that:
- Your costs are fixed, which means you don’t get any surprises with regards to your business expenses.
- You can file for substantial tax deductions, including property taxes and mortgage interest.
- You can rent some or all of your space out so that you can earn some extra income when needed.
- You can accumulate some funds, as the property is likely to increase in value over time.
However, the cons are substantial as well:
- Not having much flexibility because if your business grows substantially or shrinks a lot, you may have to sell the property sooner than you had planned.
- Having high upfront costs, not in the least because of a 30% down payment on the mortgage. You will also have maintenance, appraisal, and other property costs to take care of.
Your other option is to lease your income property, which also has benefits, including the fact that:
- You can get a prime piece of property, which can improve your reputation.
- You can free up some working capital because you don’t have to pay for a down.
- You can focus on actually running your business, rather than spending some time on property management.
However, there are some downsides as well, including the fact that:
- Your costs will be variable because of the usual rent increases.
- You do not build up any equity in the property, since you don’t own it.
To help choose between the two alternatives, being aware of the trends and statistics in terms of prices, supply, and demand, can be helpful.
Santa Ana Income Property for Sale – Trends and Statistics
Santa Ana has numerous income properties for sale, spanning a range of different industries, uses, and zones. These include:
- An office building
- The largest marijuana dispensary in California
- A medical center
- A plaza
- A restaurant in a popular shopping center
- A rehab facility
- Commercial land
- A commercial square
- A car wash
- Land zoned for retail development
- A strip mall
- An office condo
- A warehouse
- A low rise building
These are just some of the examples of income properties that are available in Santa Ana, showing the array of business opportunities that exist as well. Of importance is that the majority of these properties are already developed for specific purposes, which can be quite limiting for some people.
Santa Ana Income Property for Lease – Trends and Statistics
There are numerous pieces of income properties available for lease in Santa Ana, which is mainly due to investors having purchased a large number of these types of properties during the last recession. They continue to wait for a housing market high before they agree to sell their properties, which could be indicative of a continuing rise in prices.
The income properties that are available for lease span a range of different zones, including:
- Office buildings
- Free standing buildings
- Street retail properties
- Flexible spaces
- Specialty centers
- Professional buildings
- District warehouses
- Medical centers
The world of leasing income properties is wide, and there are many different opportunities available for those with an interest in this field. Additionally, it demonstrates that those who purchase these types of properties should easily be able to earn an income through them.