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Buying Investment Property in Orange County? Here Are 5 Due Diligence Questions to Ask First

Thinking about buying investment property in Orange County? Investors must perform due diligence before closing on the property because it is your last chance to avoid purchasing a bad deal. Sadly, new investors learn these lessons the hard way, oblivious to the red flags that professionals recognize. These deals can escalate into financial disaster and court battles. Due diligence is an inspection of the property’s physical features and an investigation of all financial data to ensure everything is in order. 

If you’re buying investment property in Orange County, here are five due diligence questions to answer before closing on the deal. 


How much time do I need? The period of days allotted in the transaction by law for due diligence efforts may not allow for a full investigation when buying investment property in Orange County. For this reason, it is advisable to request extra time to perform a thorough and complete due diligence process. You’ll want to ensure to allow time for whatever inspections may be called for, depending upon the type of real estate you are acquiring, and provide any inspectors, engineers, surveyors, and the like to ensure they will be available, allowing enough time.  

Differing Analysis

When you buy an investment property in Orange County for refurbishment, established rental properties will have records for examination. Due diligence calls for careful accounting by an experienced eye. And the property itself should be scrutinized by a certified inspector to catch things that you may very well miss. You’ll also want to cover all legal bases, such as ensuring a clear title on a rehabilitation project or endangered species on land development. When purchasing more significant rental properties, investors must examine management expenses.

Development Costs 

Due diligence allows you to fully understand the development costs of your project when buying investment property in Orange County. If you are developing raw land, you need to answer questions regarding the buildability of the property. To rehabilitate an existing property, you’ll need time for a thorough inspection and review of financial records. 

Demand in the Area

Due diligence questions should include those about rental rates for similar housing in the area to ensure accurate data. Location is paramount to success, but you should also consider the amenities and finishes essential to new buyers when buying investment property in Orange County. 


When you are buying investment property in Orange County, due diligence questions will allow you to ensure the potential for appreciation that matches your goals for returns. A great way to find an average appreciation is to check the land value records for the past quarter-century and compare your parcel to the county average.

Repair Costs 

Costs are affected if upgrades are called for to achieve the highest returns on the investment. Practicing due diligence when you’re buying investment property in Orange County should include professional inspections and estimates from three providers for the work. Don’t forget to calculate extra for what could go wrong, at least one percent of the property’s value. There will also be costs for the extended time you hold ownership until the repairs are completed, including paying all of the monthly expenses until resold.

It’s easy to see how highly differing investment types can affect the due diligence process when buying investment property in Orange County. You can rely on the experts at H&M Realty Group for guidance, familiar with all of the necessary due diligence questions to ask, no matter what type of real estate investment in your niche. At H&M Realty Group, you are welcome to ask us any questions or share your concerns, it is our passion to see you succeed, and there is no obligation for the call. Call H&M Realty Group at 949-625-4533 or send us a message today.


Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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