16601 Alliance Ave, Tustin CA 92780
16601 Alliance Ave, Tustin CA 92780
16601 Alliance Ave is considered a multi-family home in Tustin, CA 92780. It consists of a total of twenty-five units. These units are a combination of one, two, and three bedroom apartments. The buildings total square footage is 20,564, and it sits on a lot totaling 39,204. This property was built in 1968 and was last purchased by a husband and wife in 1987, for $1.5 Million. 16601 Alliance Ave is near Pepper Tree Park, Frontier Park, and Tustin Centennial Park. There are five elementary schools, five middle schools, and three high schools in the area. The neighborhood has a walk score of 63 out of 100 and a transit score of 40 out of 100.
The property also boasts assigned open parking spots and single car garages. It has onsite laundry and a community pool, for residents. It is priced at approximately $204 per square foot. The average rent is $1800 per month. The lower units are wheelchair accessible, and all units have furnace heating and in-wall air conditioning units. The exterior appears to need some cosmetic upgrades. According to public records, the units have not had any significant renovations since its purchased in 1987. (Tax.ocgov.com, 2019) So it would appear that all the units would need to be inspected and significantly upgraded. According to negative Yelp reviews from previous tenants, there seems to be a bug infestation, electrical issues, and the owners should not be property managers; they do not have the proper acumen. (Yelp, 2019)
The interior of most of the units has carpets and linoleum. Each unit is at least 800 square feet, and the building is currently at fifty percent occupancy. The units are prewired for local cable service. There is high tenant turn over, and there appear to be several complaints against the owners for not meeting city codes on the furnaces. “Under the California Civil Code, landlords must ensure that certain conditions are met which make the living space habitable and safe for potential lessees,” (Stimmel Law, 2019) They include proper plumbing, gas, and electrical systems. If the owner/landlord does not meet these requirements, the resident has the right to deduct the repair costs from his rent or leaving the property without constraints. According to complaints filed by the gas company, they could not turn on new gas service in some units because the existing furnaces did not meet city code.
The curb appeal needs to be addressed as well. The property has a jungle like feel due to overgrown bushes and trees. The outer structure needs to be repainted, and there appears to be some wood damage (possible termite). Because the buildings are moved to the outer edge of the property, there is no room for expansion without a teardown. The parking in the neighborhood is bumper to bumper so it may be hard to have guests as there is no guest parking on the property. The current owners have been responsible for the upkeep and maintenance of the property. There is no additional staff involved in the management of the property. Maintenance is the state of being maintained. (Webster’s Dictionary) A significant element of property management is the successful maintenance of the asset/ property.
The most useful data in comparing the financial integrity of Alliance Ave property can be found on sites like zillow.com The main areas to concentrate on is location, lot size, property square footage, features inside and out, currently sold properties and listed properties. This is the basis of every appraisal and lenders require an appraisal to issue a mortgage on any property. This is in addition to what every investor should be looking at, and that is the potential for profit. How much of an investment will it take to maximize the profit?
The property located 16601 Alliance Ave, in Tustin California has twenty-five rentable units that require mostly cosmetic upgrades, like flooring, paint, new or refurbished cabinets, new counter tops, and a full sweep by a pest control company. The major upgrades are limited to new heating and cooling system and possible electrical being brought up to code. As there have been some complaints from the electric company about possible repairs. Based on the information provided by zillow.com and realtor.com this property has the potential to increase its profitability by at least 20% if the suggested upgrades are done.
Lapin, J. S. (2018). Should Take to Improve Maintenance. Journal of Property Management, 83(3), 27–30. Retrieved from http://search.ebscohost.com.proxy-library.ashford.edu/login.aspx?direct=true&db=bsh&AN=129490057&site=eds-live&scope=site
Realtor.com, (2019), Retrieved from https://www.realtor.com/realestateandhomes-detail/16601-Alliance-Ave_Tustin_CA_92780_M19813-93007
Stimmel Law, (2019), Landlord Obligations for Habitable Premises – The Basic California Law, Retrieved from https://www.stimmel-law.com/en/articles/landlord-obligations-habitable-premises-basic-california-law
Woodson, R. Dodge. (2006). Be A Successful Property Manager. New York: McGraw-Hill.
Zillow.com, (2019), Retrieved from https://www.zillow.com/homes/for_sale/globalrelevanceex_sort/33.738243,-117.836548,33.735653,-117.838315_rect/18_zm/