When determining the value of an Anaheim apartment complex or a rental income property of any size we have a number of factors to consider. Some of the key value indictors are location, size, condition, monthly income and annual income, monthly expenses and annual expenses. We use this information to identify the appropriate cap rate, gross rent multiple and cost per unit for the asset. The appropriate value indicators are usually dictated by recent comparable sales. This process can be applicable for a variety of investment real estate types such as duplex, triplex and quadruplex buildings; and larger apartment complex properties.
If you are interested in investing in the Anaheim real estate market, there are numerous options. Financing an income property is something every investor should understand. 1-to-4 unit investment properties can be mortgaged like a house, typically with 30 year fixed rate financing (The industry standard term for this type of loan is "Residential Financing."). Multifamily projects with 5 or more units are financed with commercial financing. Commercial financing focuses considerably on the asset performance, where residential financing organizations tend to produce loans based on the borrowers ability to make the payments.
Cap rates in Anaheim have hovered in the range of 3% to 6% for many years. There are the anomaly sales that close outside of this range but it happens due to some other factor. If a property sells outside of the 3-6 percent range it is typically because there is upside in value for the investor or there is an emotional reason for the Buyer to purchase the property.
Demand for Anaheim real estate, especially income producing apartment complex buildings, is very high. Seller's should be sure to hire an agent who specialized in investment real estate to be sure to get the highest and best offer.
Anaheim real estate has remarkable investment fundamentals for residential income property.
Our team is licensed and able to post our listings to the MLS. We sell income properties ranging from single-family-homes to large scale apartment communities with hundreds of units.
Anaheim investment real estate is diverse as the age of properties vary from historical 100-year old or more multi-unit and single family homes to newly built apartment complexes. The locations can differ dramatically also as to where the property is with the city of Anaheim; this can effect the value tremendously. In investment real estate, income is almost always the primary goal of an investor and it's the demand from investors that predominantly dictate the value of income properties. i.e.: rental homes, duplex properties, triplex buildings, four-plexes, and muli-family apartment complex communities.
To buy a duplex in Anaheim, a Buyer will likely need a 50% down payment to achieve a break even scenario. In our experience of selling multiunit investment properties all around southern California, we have seen lenders provide loans as large as 96.5% of the purchase price. Its far more common for properties like duplexes, triplexes and for-plexes to be financed with a 25% down payment as this is considered "conforming."