Orange County is one of Southern California’s most sought-after destinations. From tourists excited to visit Disneyland and stunning beaches like Laguna and Huntington to prospective homeowners looking to enjoy the relaxed atmosphere, people are drawn to Orange County and everything it offers.
Because Orange County is considered a wonderful place to live, more and more people are investing in Orange County real estate.
There are many things to consider before purchasing an investment property. In this article, we’ll explain the ins and outs of buying property in Orange County and share the 12 best neighborhoods to purchase an investment property.
Table of Contents
- Why Purchase an Investment Property in Orange County?
- Types of Investment Properties in Orange County
- The Best Neighborhoods in Orange County, CA, for Rental Property Investment
- Investing in Orange County Real Estate
- Hiring a Property Management Company for your Rental in Orange County
- Orange County Property Investment FAQs
Why Purchase an Investment Property in Orange County?
Orange County has experienced consistent market growth over the last decade. It boasts a strong economy, diverse industries—healthcare and technology to education—and a high-demand housing market. Together, these factors have created the potential for long-term appreciation of investment properties.
This consistent growth and the limited supply in Orange County means you can expect a substantial return on investment. Rental rates have increased steadily, and because of the area’s attractiveness, they are projected to continue climbing.
Orange County has beautiful beaches, a desirable climate, and endless attractions, making it a desirable destination for tourists and residents.
Types of Investment Properties in Orange County
When investing in real estate, you need to understand what properties are available in your area. In Orange County, there are various investment properties to consider.
- Development: The high demand for housing in Orange County has created opportunities for property development. Multi-family units in areas with high rental demand are among the most sought-after investment properties.
- Fix-and-Flip: Fix-and-flips work well in Orange County, thanks to the appreciating property values. This is an excellent strategy in up-and-coming neighborhoods because some homes may still be undervalued.
- Long-Term Rentals: With so many young professionals moving to the area for work, there is the opportunity for lucrative long-term rentals in Orange County.
- Short-Term Rentals: While short-term rentals may seem like the perfect solution for many neighborhoods in Orange County, many areas do not allow them. Newport Beach, Laguna Beach, Fullerton, and Huntington Beach all allow them, but there are conditions, and you need a Short-Term Rental Permit.
The Best Neighborhoods in Orange County, CA, for Rental Property Investment
1. Costa Mesa
Sometimes referred to as Orange County’s hidden gem, Costa Mesa has gained increasing attention in the real estate market. With a wide range of cultural attractions, a location that provides easy access to major employment centers, and future development plans that aim to improve the area’s appeal, it’s no wonder the people gravitate to Costa Mesa.
Property pricing trends show a steady increase in property values, but the area is still more affordable than some exclusive, upscale OC neighborhoods. Paired with the strong rental market, Costa Mesa offers property owners the opportunity to earn a steady income year after year.
If you’re in need of Costa Mesa property management services, schedule a call with one of our property management experts today.
2. Newport Beach
If you’re looking for a high-end investment property, Newport Beach has upscale communities and waterfront properties that will fit the bill. The current expansion of coastal developments is creating more opportunities for investors. And with tourism continually increasing in the area, the demand for vacation rentals is high.
Known for family-friendly beaches, outdoor activities, and top-rated schools, Newport Beach is one of the more exclusive areas in Orange County. While the initial investment to buy a property in Newport Beach may be high, the return on investment should match.
If you’re in need of Newport Beach property management services, schedule a call with one of our property management experts today.
3. Anaheim
With Disneyland’s influence and a budding infrastructure, Anaheim is another promising location for real estate investment in Orange County. Disneyland brings millions of visitors to Anaheim each year, building a thriving economy that benefits the local real estate economy.
But Disneyland isn’t the only attraction in Anaheim. The always sunny weather, professional sports teams, and convention center make Anaheim a great place to work and live.
If you’re looking for Anaheim property management services, schedule a call with one of our property management experts today.
4. Aliso Viejo
One of the newest cities in the OC, Aliso Viejo, is an up-and-coming location for investment properties. It is an inland Orange County suburb located in the Hills of San Joaquin. Compared to other coastal cities in the OC, Aliso Viejo is overall more affordable due to the lower cost of living.
There is also a wide variety of property types available. Whether you’re looking to invest in an affordable townhome, condo, or a million-dollar estate, you’ll be able to find it in Aliso Viejo.
5. Huntington Beach
A coastal city with surfer charm, Huntington Beach has steadily grown in popularity. As one of the following up-and-coming neighborhoods in Orange County, Huntington Beach has become a top destination for real estate investors. Huntington Beach has a little bit of everything, making it a welcoming location for almost everyone looking to live in the OC. The area is exceptionally pet-friendly, so it is best to consider allowing pets in your rental.
Market demand is currently high in this area, so getting in early will benefit you in the long term.
Need Huntington Beach property management services? Give us a call today.
6. Irvine
What better neighborhood to invest in than the city that the FBI has ranked the Safest Big City in America nine years in a row? Irvine is the OC’s business hub and the home of the top-tier research school, the University of California, Irvine. Irvine also boasts the Irvine Regional Park, Bummer Canyon, and the Pretend City Children’s Museum. As you can see, there are many reasons why renters would be looking to move to the area.
As a property owner, Irvine is one of the most profitable cities for rental homes in Orange County.
Irvine has 20 individual neighborhoods, so it can be hard to narrow down which one would be best for your investment property. All neighborhoods have great schools, local parks and green spaces, convenient shopping, and public transportation. If you want to narrow your search, start looking at Woodbridge, Orchard Hills, and Northwood.
Good Life offers Irvine property management services. Schedule a call to speak with one of our experts today.
7. Seal Beach
Named for the seals that swim and frolic in the waters around the seaside neighborhood, Seal Beach is a prime coastal location. Seal Beach has wonderful weather throughout the year, and its proximity to the freeway makes it the perfect location for those who love the city and the beach.
Seal Beach is an excellent location for families—it has great schools as it’s part of the Los Alamitos School District. The large beaches that attract surfers and other water sports enthusiasts make it a popular location with young people.
Seal Beach is a great option for an investment property as it isn’t as populated as other locations in the OC—but it has plenty of room for growth.
8. San Clemente
If you’re looking for a location ideal for outdoorsy families, look no further than San Clemente. This seaside town is perfect for people who want to feel close to nature. There are hiking and biking trails all through the town’s ridgeline and coastline, leading to some exceptional beaches.
One of the best neighborhoods in Southern California, San Clemente has the small beach town vibe many people search for. It’s also a great area for families, so if you want to invest in a single-family dwelling, San Clemente is a great option.
If you’re in need of San Clemente property management services, schedule a call with one of our experts today.
9. Yorba Linda
One of the safest places to live in Southern California, Yorba Linda, has also been identified as the wealthiest city in the US by the Census Bureau in past years. Its thriving job market makes it an attractive location for professionals and young families alike.
This suburban town has a lower population density than other cities in Orange County, so you have more space to spread out and enjoy your hobbies. Horseback riding is one of the most popular pastimes in the area because of the space available for equestrian properties. There is a variety of real estate options available for investors to choose from, including luxury homes on spacious lots and modest homes with sweeping views of Orange County.
10. Laguna Beach
Laguna Beach, the home of all things artistic in Orange County, was founded by a group of artists in the 1920s. That creative flair still surrounds this stunning coastal location. The rolling hills and rocky coastline are a clear indication of what drew those artists to the area all those years ago.
Laguna Beach has become one of the most luxurious neighborhoods in Southern California. Living here is all about having fun, enjoying events like the Sawdust Art Festival, and exploring all the city offers.
In need of Laguna Beach property management services? Give us a call today.
11. Mission Viejo
What makes Mission Viejo unique is that while it isn’t a coastal town like many of the locations in the OC, a large lake located in the center of town gives the town access to a wide range of water activities and lakeside properties.
If outdoor space is high on your list of wants for an investment property, Mission Viejo boasts older homes with premium backyard space compared to most newer builds. There is a wide variety of homes for sale in Mission Viejo—from affordable condos to brand-new townhomes to multi-million dollar homes.
12. Lake Forest
A suburban neighborhood that is small, safe, and well-planned but is neighbors with Irvine, the business hub of Orange County? That’s Lake Forest, the perfect location for young professionals to settle down and start their families.
As the name suggests, Lake Forest is full of trees and has a beautiful lake for residents to enjoy. The area has a lovely small-town charm that keeps visitors coming back. Tons of green parks, ample shopping, and an engaged community foster continued growth in the area.
Investing in Orange County Real Estate
Investing in Orange County real estate can be a profitable endeavor with a substantial return on investment. When deciding where to invest, consider the location, property type, and legal implications—like zoning and permits.
Be sure to consult with experts throughout the process and conduct proper research on each neighborhood and property you consider. When you approach the Orange County real estate market armed with information and sound decision-making, you can find success in your investments.
Hiring a Property Management Company for Your Rental in Orange County
Managing the responsibilities and repairs of your rental can take time and effort. At Good Life Property Management, we believe life should be enjoyed, not spent sweating the small stuff. That’s why we set out to make property management easy. We care about you, your property, and your tenant. And we do it all so you can Live the Good Life.
Schedule a call to speak with one of our Good Life experts.
Orange County Property Investment FAQs
Is Orange County a good place to buy an investment property?
Is now a good time to buy an investment property in Orange County?
What kind of property is best to invest in?
Steve Welty
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