Laguna Beach is mainly filled with residential single family homes and condos but has a fair number of income properties that are mainly located in the downtown Laguna Village area. Many of the buildings will offer ocean view units that can range anywhere from a small duplex property to a 13 unit condo complex. There are several things to keep in mind when looking at income properties which are unique to Laguna Beach.
First, it's not all about the numbers when looking at real estate prices for income property. Many real estate investors look at the numbers and then they should receive a cash flow base on a 10 to 20% down payment. Things normally don't work that way here in Laguna Beach as the listing price has many factors which include the location, view and condition of the building. The first two components are the most important elements as properties located near the beach always command a huge premium in price.
Second, it's important to check with the local city planning department to make sure all the codes and permits are up to date. Laguna Beach is notourious for having items grandfathered in with many items that could be an issue if you ever decide to do any future repairs that may require a permit. It's easy to go down to the city of Laguna Beach and give them the address of the property for a quick review of the building.
For those buildings who run vacation rentals through them make sure this has been approved by the city to avoid future problems. Laguna Beach is very strict when it comes to weekly and vacation rentals so make sure you do your due diligence before purchasing a property. We have included the link for additional information on the weekly vacation rental rules. We would love to show you the various options for investing in Laguna Beach, please call us at 949-355-1622 today.