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Coty H.
  • Financial Analyst
  • Los Angeles, CA
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Echo Park, Los Angeles Oppurtunity

Coty H.
  • Financial Analyst
  • Los Angeles, CA
Posted Jul 22 2016, 13:48

I have an opportunity to purchase an off market 2-unit property in the Elysian Heights section of Echo Park.

To those familiar with the market:

First and foremost, the property would be my primary residence and would greatly decrease my personal basis as my % of the mortgage would be less than my current rent in a much inferior unit. Saving money from that alone.  On a $/psf basis, this transaction would be at the very top of the market which is scary, however, applying the rent for the unit which just had a lease signed at very high rents and applying market rent to the other unit (which I would occupy), the deal breaks even in year 1, (including all operating expenses, mortgage, mgmt. fee. etc.).

So my question:

Echo Park has seen significant rent appreciation over the previous few years. How safe is it to rely on appreciation in a market as desirable as Echo Park. Even if we see some sort of market correction in say 2018/2019, I honestly only see this neighborhood appreciating, especially as this would be a long term hold due to the location and the functionality of the site/property.

Thanks for guidance

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