Hello BP team!
First of all, thanks for all the great information all of you help build on this great forum!
I am in the early phases of researching house hacking. I am exploring if investing in a 2 or 3 unit property and living in one of the units as owner occupied makes sense. I had a question and thought I'd ask the folks at BP for their thoughts.
For multi-family investing, if some or all of the units are already occupied by tenants of the previous owner, how do you proceed? Assuming you want the tenants to be moved out of the property for one reason or another (example previous owner was charging lower than market rents, wanting to rehab the property etc.), how does the eviction process work? Parts of LA area are rent-controlled so not sure how that factors into the situation.
As a preemptive measure being a multi-family investor, how do you make sure that the units would be vacated by the existing tenants, before closing in on the property?
Would love to hear from experienced investors about any related experiences!
Look up and understand the Rent Stabilization Ordinance (RSO) in LA. If it applies to a MF property you’re thinking about buying (very good chance) then you’ll understand that the units most likely won’t be delivered vacant and you won’t be able to relocate tenants without cash out of pocket. You may not be able to relocate them at all.
Thanks @Lee Ripma , I've been reading about RSO. The rent control situation seems tricky from a investor's perspective. Lots of things to consider before switching from renter to buyer in LA!
Here are some of the resources I referred to re: RSO, sharing it in case it helps anyone else.