What kind of expenses in Los Angeles, CA?

Question

Hello there!

I currently live in Fresno, CA and my wife and I are working in moving to LA soon by doing house-hacking in a small multi-family property.

What kind of expenses (besides the mortgage) will I be facing as a homeowner in Los Angeles area?

Also, if you live in LA, let's connect!

Matt Mason · Answer

Wrong.  City of Beverly Hills has rent control.

Courtney M. · Answer

I'd say I'm pretty well versed on house-hacking in LA (I live in my triplex). Let me know if you have any questions. But yes, overall familiarize yourself with rent control rules in LA. They can be the difference between living mortgage free or not.

David Chailim · Answer

I would say that most of (central) LA multi-family units are rent controlled. And in addition to the limited rent increases, LA's rent controlled properties has a city housing authority that protects tenants rights.

http://hcidla.lacity.org/

That's not to say that you shouldn't do it, since I'm currently doing that right now with a duplex, living in one and renting out the other in North Hollywood. Most of these properties are usually older homes, built around 1950's. Usually the owner pays for water and trash bills for multi-family buildings in LA, while the tenant pays for everything else.

Michael Evans · Answer

The City of LA has mandated that all apartment buildings with so called "soft story" buildings be seismic upgraded. I'm looking to partner with investors to buy these buildings and do the retrofit work.

Matt Mason · Answer

I should correct myself as Beverly Hills rent control, but it generally does allow for 10% increases vs. 3% for Los Angeles.

Ramon Polo · Answer

Thank you guys.

You guys are the best.

@Courtney M. It's awesome that you're doing house hacking! I sent you a personal message with a couple of questions. Thanks!

Ramon Polo · Answer

Thank you for the information, @David Chailim!

That's exactly the information I was looking for.

Yeah, I'm aware of the high amount of rights that tenants have in California lol

It's awesome that you're doing house-hacking.

Sam L. · Answer

If you don't even know what rent control is, you may not be ready to be a landlord, you need to do a lot more reading first.

And the first thing to know about the LA area is that there are over 80 separate incorporated cities in LA county.  It can make a huge difference which city you live in.  Take some time and figure out the lay of the land.  It's very unintuitive, too.  North Hollywood is in city of LA, West Hollywood is its own city.  Some cities are better or worse for landlords/property owners than others.

Ramon Polo · Answer

Oh ok.

Thank you guys! That's why I like to ask people from the area.

I had no idea about this!

What kind of expenses in Los Angeles, CA?

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