Owning a duplex near a major freeway? (Los Angeles)

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Owning a duplex near a major freeway? (Los Angeles)

Colton Hector
Member since 2023 · 5 posts · 2 votes

Hello,

I am a first time investor buying a duplex (with land to add an adu) in Echo Park/Angelino Heights.  The property is a beautiful craftsman home with a single 1b1b unit in the back and excess land.  The one downside however, is that the parcel sits about 550ft away and up a hill from the 101 freeway.  I am now into the weeds on air pollution and the long term effects.  I guess good news is we are moving to an electric vehicle world... however, should I be concerned about the long term value of this property?  Anyone have opinions?  Maybe I am just overthinking things as I typically do...  The current tenants have lived there for 5 years each so someone seems to enjoy the area.

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  • Matt Giacinto
    Investor · Los Angeles · Member since 2021 · 94 posts · 29 votes
    3y

    Hey Colton, congrats on your first investment property. The fact that it's by the 101 isn't the worst; however, air pollution and homelessness tend to thrive in those areas so I'd be weary of that. Long term wise, Echo Park is gentrifying more and more so it's only on the up, making it a great area to invest. I think that you would've seen any real of the real worries already, since it sounds like you're already under contract. Again, Congrats and I wouldn't focus too much on what can hold your property back, but rather how do you improve it!

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Colton Hector:

    Hello,

    I am a first time investor buying a duplex (with land to add an adu) in Echo Park/Angelino Heights.  The property is a beautiful craftsman home with a single 1b1b unit in the back and excess land.  The one downside however, is that the parcel sits about 550ft away and up a hill from the 101 freeway.  I am now into the weeds on air pollution and the long term effects.  I guess good news is we are moving to an electric vehicle world... however, should I be concerned about the long term value of this property?  Anyone have opinions?  Maybe I am just overthinking things as I typically do...  The current tenants have lived there for 5 years each so someone seems to enjoy the area.


     What is your long term goal with this property? Do you plan to live there forever?

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  • David Bilandzija
    Lender · Venice, CA · Member since 2021 · 189 posts · 132 votes
    3y

    @Colton Hector The theory on the matter reads like this... Economic obsolescence refers to the loss of value of a real estate property that is caused by factors that are external to the property. 

    Proximity to major highways, airports and landfills are a few examples of situations involving economic obsolescence in real estate.  Not a deal breaker but certainly something to be aware given the impact on desirability.  

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  • Colton Hector
    OP
    Member since 2023 · 5 posts · 2 votes
    3y

    Thanks man!  The area does seem on the come up 

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  • Colton Hector
    OP
    Member since 2023 · 5 posts · 2 votes
    3y

    I would live there for 2 years to comply with la city rent control laws 

    0Reply
  • Dan Portka
    Real Estate Agent · San Pedro, CA · Member since 2019 · 253 posts · 128 votes
    3y

    @Colton Hector I had a friend that lived right up against the 101 fwy in Echo park for a few years. It was an awesome house and I liked the neighborhood. I wouldn't be concerned about it. Your property and the surrounding ones have already been priced accordingly based on their location, so no reason to worry about long term value. 

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