Tustin Income Property For Sale & Lease

Tustin is found in California’s Orange County, within the Los Angeles metropolitan area. It had a population of 74,540 in 2010, making it a relatively small city. It is right next to Santa Ana, the county seat. In 2009, Forbes chose Tustin as one of the top 25 towns in America to live well in, because it ranks in the top 10% for sole proprietors and startups per capita, as well as having one of Southern California’s shortest average commutes. Besides working for startups and sole proprietorships, people in Tustin commonly work for the education system, the health care system, and manufacturing companies.

Unfortunately, the median household income in 2010 was just $74,011. More worrying was that 12.2% of the population were living below the poverty line. It should be noted that the household income had actually improved because it was just $55,985 in 2000. On the other hand, those who were living below the poverty line had increased because this was only 8.5% of the population in the year 2000. As such, while classed as a good place to live well in, many residents may not agree. This is possibly partly due to the high cost of living in Orange County, which is a very affluent area.

The goal of investors of income property is to rent or lease the property until its value reaches a certain level, after which they sell it again. Income property is often commercial, although it can also be residential. In the latter case, financial experts speak of “non-owner occupied”. For these properties, higher interest rates than owner occupied mortgages can be asked, because they are classed as high risk mortgages.

Tustin Income Property for Sale & Lease – Should You Buy or Lease?

If you are interested in income property in Tustin, the usual two choices are to either buy or lease.

Let us examine the advantages of buying income property, which include the fact that:

  • Your monthly expenses are predictable because amortizations will remain constant during the duration of the mortgage.
  • You can claim substantial tax deductions, including property taxes and mortgage interests.
  • You have the option of using your income property for your own personal use.
  • The property tends to increase in value over time.

On the other hand, the cons of buying income property include the fact that:

  • You have high upfront costs. First of all, you will need to pay at least a 30% down payment on the mortgage. You will also have maintenance, appraisal, and other property management costs to take care of.

By definition, income property is not suitable for leasing. If you were to lease an income property, then you would do so for your own personal use, turning it into a residential property. As a result of this, the only statistics that should be of interest to you are those of prices, supply, and demand for purchased income properties. On the other hand, statistics on leasing these properties could give you an idea of what you will be able to earn on your property.

Tustin Income Property for Sale – Trends and Statistics

  • The asking price for income properties in Tustin $314,841.90, which is a 0.7% increase over the past three months, and a 10.5% increase year on year. This is higher than the state ($206,014) and the metro ($254,071.41) area.
  • The index of total dollars available fo income properties for sale in Los Angeles-Long Beach-Tustin is 29, which represents a 13.4% increase over the past three months but a 2.5% decrease year on year.
  • The index of total number of listings of income properties available in Los Angeles-Long Beach-Tustin is 24, which is an 8.9% increase over the past three months, but a 1.3% decrease year on year.
  • The profile view index of income property for sale in the Los Angeles-Long Beach-Tustin metro area is 97, which is a 24.9% increase over the past three months, and a 22.5% increase year on year.
  • The index of total number of units of income property for sale in the Los Angeles-Long Beach-Tustin area is 21, which is a 12.2% increase over the past three months, but an 11% decrease year on year.

Tustin Income Property for Lease – Trends and Statistics

There are no trends and statistics available on potential income earned on leasing out a property that you have purchased. This is in part due to the fact that there is a wide array of different types of properties, and their monthly lease amounts vary greatly. Investing in income property is one of the commercial real estate investments most likely to give you the highest possible returns if managed properly. At the same time, it is one of the most complicated options out there, due to the variety of opportunities that you could choose from.