Property Detail

Description

Exceptional Westside Costa Mesa investment opportunity offering strong existing income, immediate rent-growth potential, and significant long-term development upside. The property currently generates $8,500 per month in gross rental income ($102,000 annually), with a projected stabilized pro forma of approximately $10,000 per month ($120,000 annually) in its existing configuration. The front 2-bedroom, 1-bathroom residence is occupied on a month-to-month basis. The rear ADU is currently leased on a one-year term. The property consists of an existing 2-bedroom, 1-bathroom residence and a newly constructed, freestanding 3-bedroom, 3-bathroom ADU of approximately 1,200 square feet. The ADU features 10-foot ceilings, quartz countertops, stainless steel appliances, recessed LED lighting, in-unit laundry, solar, a private yard, dedicated driveway, and no common walls. Highly attractive R2-HD zoning provides additional future development potential. Preliminary concepts indicate the potential to redevelop the front portion of the property with up to three additional residential units while retaining the existing rear ADU, potentially creating a four-unit income property. Buyer to independently verify allowable density, unit count, development standards, and approval requirements with the City of Costa Mesa. Based on projected future rents, a four-unit configuration could potentially generate approximately $18,000 per month in gross rental income ($216,000 annually) on a pro forma basis. The rear ADU may potentially remain income-producing during redevelopment of the front portion of the property, allowing an owner to continue generating rental income while helping offset carrying and construction costs. Located in desirable Westside Costa Mesa, minutes from the beach, Newport Beach, dining, shopping, bike trails, and surrounding coastal communities. The combination of existing income, R2-HD zoning, and future redevelopment potential makes this a unique opportunity for investors seeking both near-term cash flow and long-term upside.