Tustin Multifamily Property For Sale & Lease

Tustin is found in Orange County, within the Los Angeles metropolitan area in California. In 2010, there were 74,540 residents, making it a relatively small city. It is right next to Santa Ana, the county seat. In 2009, Forbes listed 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. Also, many people in Tustin work for the education system, the health care system, and manufacturing companies.

Unfortunately, the median household income in 2010 in Tustin was just $74,011 and 12.2% of the population were living below the poverty line. The household income had actually improved because in 2000 it was just $55,985, but then only 8.5% of the population were below the poverty line. It is believed that this is in part due to the high cost of living due in city as it is a part of Orange County, an affluent area.

Tustin Multifamily Building for Sale & Lease – Should You Buy or Lease?

If you are interested in getting a multifamily building, the choices are usually to buy or lease.

The benefits of buying multifamily space include the fact that:

  • You have more than one “door” to rent out. Thus, you don’t have as much risk of not having any income at some point. Furthermore, having multiple doors helps you to spread the cost of potential capital improvements and repairs.
  • If you have at least four units within your property, you have access to various types of financing. The income that the property can bring in will be a major factor when you apply for a loan. A loan guarantee is usually required, and you will need to have the right amount of reserves and resources.
  • It is convenient because you only have a single location.

On the other hand, there are some disadvantages, including the fact that:

  • You have a larger initial cost than with a single family property. You will have to have greater reserves and down payments, therefore. While you do have more income in order to manage your expenses, the expenses are usually higher and they tend to have a domino effect, which means that if one tenant causes a problem, other tenants may start to suffer.
  • There can be an issue about turnover rates beyond those experienced in single family units. Turnovers are generally quite costly, particularly if multiple units are in the process of turning over.
  • Having multiple tenants may mean that you have to deal with several problems at the same time. This can lead to emotional outbursts and since you are the landlord, you end up being responsible for resolving them. In many locations, property owners are fined by cities and police departments for nuisance calls, for instance.

Unfortunately, multifamily properties cannot usually be leased. This is because the owner of the property will look at renting out the different units, rather than the entire property. There are some rare exceptions. For instance, someone may not have the ability to properly manage such an investment anymore, but wants to hold on to the property regardless. While property managers are often hired to handle those problems, they may agree to allow others to lease the entire property and to collect the earnings from renting out the individual units. Luckily, this is rare.

To determine whether investing in multifamily properties in Tustin is a good way forward, it is important to be aware of the trends and statistics in terms of prices, supply, and demand, can be very beneficial.

Tustin Multifamily Property for Sale – Trends and Statistics

  • The asking price for multifamily 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) area and the metro ($254,071.41) area.
  • The index of total dollars available for multifamily 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 multifamily 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 multifamily 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 multifamily 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 Multifamily Property for Lease – Trends and Statistics

There are currently no Tustin multifamily properties for lease. This is due to the fact that multifamily properties for lease would fall outside of the realm of commercial real estate. Rather, they would be part of residential real estate, meaning they become occupied either by the owner or by a tenant.