LA Rent Control - Tenant Eviction Strategies - Anyone "been there, done that"?
I am interested in buying a fourplex in Northeast LA using FHA financing and occupying one of the units as my first rental property. The property looks pretty crummy (and the price point the seller is looking for certainly reflects this), and the rents are way below market, but no structural issues. I would like to spruce it up to attract higher-quality tenants, especially since several surrounding houses have recently been remodeled and look really nice--this property sticks out like a sore thumb--and there are some nice skyline views from two of the units that I think could entice some younger professional types (very short commute to downtown to boot).
Anyway, how can I get rid of the current tenants so I can rent to new ones at higher rents? Anyone "been there, done that"? I spoke to the HCID this morning and was told that even if I were to evict one of the tenants for owner-occupancy, I would be required me to pay the tenant thousands of dollars for relocation assistance! How do LA landlords get by owning rent-controlled units? Any wisdom from experience, especially from those who have been in my shoes (buying FHA owner-occupied in LA), is welcome!
1 bed / 1 bath: $721/month - 1-year lease
2 bed / 1 bath: $735/month - month-to-month
2 bed / 1 bath: $735/month - month-to-month
3 bed / 2 bath: $1030/month - expired lease (was told by the HCID that even if a lease is expired, if the tenant has lived there over a year, he/she is protected like any other tenant with a valid lease)