Coastal Real Estate Guide July 28, 2017 : Page 2

2 COASTALREALESTATEGUIDEOC.COM JUL Y 28, 2017 CONTINUED FROM PAGE 1 : ASK THE EXPERT underwriting the property. Investors need to ensure that potential rents are realistic and make sure due diligence is thorough to uncover any factors that could affect future profits. Ultimately, long-term appreciation is the goal. The rate of return on a multifamily building is expressed as the capitalization rate (cap rate), which is a ratio between its value and the income that it generates. A lower cap rate means a higher value for the building, but it also reflects lower risk for the investor. As with any investment, an investor typically receives a lower This multi family home in Newport Heights is currently on the market. return if the risk in the investment is lower, e.g. bonds versus stocks. In Not all investors look at coastal general, investors buildings as purely an investment are willing to accept play, some will also incorporate lower cap rates for personal use into the equation. For buildings along example, some investor clients will the coast because buy a duplex on the Peninsula, keep of lower risk due one unit free during the summer to historical long-months and use it as a getaway term appreciation or share with family and friends. in rents and value. Other investors have potential This long-term plans to turn the duplex into a appreciation also primary residence after retiring and This complex in San Clemente sold recently for $1.075 million. acts as a hedge downsizing. against inflation. Investing in real estate along Christian Walsh is a broker-the Orange County coast fulfills of multifamily buildings. For associate with Coldwell Banker the investment strategies of many investors looking to sell, it may be Residential Brokerage who specializes prudent and long-term investors a good time to strongly consider in multifamily real estate. Reach him today. Industry watchers anticipate those plans. For investors looking at or 949-rents and values to rise over the to buy there are still deals, but it’s 677-3466. long term on this finite resource important to be conservative in EDITORIAL NEWS GROUP EDITOR Andrea Adelson DESIGN/PRODUCTION CREATIVE DIRECTOR Sonia Chung MARKETING DESIGN DIRECTOR Paul Graff SENIOR GRAPHIC DESIGNER Shaylene Brooks SALES ADVERTISING SALES TEAM Scott Sanchez; Cindy Byrne, Chris Mattingley, Julie Coleman, Matt Bond, Carol Josepher, Joe Rafael PRODUCTION MANAGER Tina Leydecker PRODUCTION ASSISTANT Megan Shelhamer ADVERTISING & CIRCULATION: TEL: 949 715-4100; FAX: 949 715-4106 OFFICE MANAGER Cyndy Mendaros MAILING ADDRESS: 580 BROADWAY STREET, SUITE 301 LAGUNA BEACH, CA 92651 TEL : 949 715-4100; FAX : 949 715-4106 CEO & EDITORIAL DIRECTOR Steve Zepezauer HANZ RADLEIN 949.245.4470 HANZRADLEIN. COM 989 Cli Drive | Laguna Beach O ered at $15,989,000 Co-listed with Mike Johnson, Villa Real Estate 989 Cliff Drive is an estate-style home with one of those choice locales on renowned Shaw’s Cove in Laguna Beach. The classically designed Mediterranean Revival beachfront home has been restored gloriously, and the promontory placement affords stunning ocean views from the multiple beachfront terraces and all major rooms of the home. From its prominent oceanfront location to the property’s rich architectural and owner history, 989 Cliff Drive is a unique opportunity to obtain an estate that could not be duplicated today. ©2017 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH A liates LLC. BHH A liates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be veri ed by broker or MLS. CalBRE 01954778

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