Yorba Linda is a typical suburban city, which is within reach of Downtown Los Angeles and is found in Orange County, California. Yorba Linda is the birthplace of former President Richard Nixon, although he had already relocated before the city was incorporated. Nevertheless, the former U.S. president continues to be remembered through the Richard Nixon Presidential Library and Museum. The city is also home to Savi Ranch, a huge commercial district, as well as various other shopping centers. Furthermore, 1,000 physical businesses operate within the city, as well as a further 1,500 business enterprises operating out of residential homes. As such, it is a city which has a very low level of unemployment and it is becoming increasingly affluent. Additionally, it is one that is of particular interest to commercial real estate investors.
Yorba Linda Multifamily Building for Sale & Lease – Should You Buy or Lease?
If you are interested in multifamily space in Yorba Linda, the usual two choices are to either buy or lease.
Buying multifamily space has several advantages, including the fact that:
- You have more than one “door” (as the industry refers to it) to rent out. This means that you don’t have as much risk of not having any income at some point. Furthermore, having several doors helps you to spread the cost of potential capital improvements and repairs.
- If you have at least four units within your property, you can access different forms of finance. The income that the property can bring in will be a main consideration factor when you apply for finance for this type of property. A loan guarantee is usually required, and you will need to have the right amount of reserves and the right resources.
- It is very convenient, because you only have a single location while having several units that provide income.
Meanwhile, the cons of buying multifamily property include the fact that:
- You do have a larger initial cost than with a single family property. You will need to have greater reserves and down payments. While you do have more income to handle your expenses, these expenses are usually higher and they tend to have a domino effect. If one tenant causes a problem, other tenants may also suffer. For instance, if one property has a leaking bathtub, the properties below it may also sustain water damage.
- There can be an issue about turnover rates, beyond those experienced in single family units. Turnovers are generally quite costly, so just imagine the effect of several units in the process of turning over.
- Having multiple tenants may mean that you have to deal with several problems. This can lead to conflicts between tenants and since you will be the landlord, you may end up being responsible for resolving some of them. In many locations, property owners are fined by cities and police departments for nuisance calls, for instance.
It should be observed that multifamily properties are usually not for lease as a whole. 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 though. For instance, the owner may not have the ability to properly manage the property, but wants to hold on to it. While hiring a property manager is often the solution, the owner may allow somebody else to lease the entire property and then have an agreement with regards to the division of the earnings.
To determine whether investing in multifamily properties in Yorba Linda is a good way forward, it is important to be aware of the trends and statistics in terms of prices, supply, and demand.
Yorba Linda Multifamily Property for Sale – Trends and Statistics
- The asking price for multifamily properties in Yorba Linda $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-Yorba Linda 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-Yorba Linda 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-Yorba Linda 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-Yorba Linda area is 21, which is a 12.2% increase over the past three months, but an 11% decrease year on year.
Yorba Linda Multifamily Property for Lease – Trends and Statistics
There are currently no Yorba Linda multifamily properties for lease. This is, as explained, due to the fact that multifamily properties for lease would fall outside of the realms of commercial real estate. Rather, they would form part of residential real estate, meaning they become occupied either by the owner or by a tenant.