Echo Park, Los Angeles

12 Replies

I recently came back from a trip in LA.  

Wondering what locals think of the Echo Park area and the investment potential there?

Curbed LA

this site will give you some flavor for the EP area.  EP is one of the oldest neighborhoods in LA, and its getrifiying to the dismay of alot of long time residents, but there are many homes in disrepair that could be a flip opportunity if you could buy right.

Very hot market and hard to get a good deal. South of the 101 freeway, prices are a bit lower and not as desirable, although some agents or websites would call it Echo Park, it's actually Historic Filipino Town, which is very different...there are high-end rental developments coming up on Temple tbough. There's a lot crime around EP lake. Angelino Heights is a HPOZ area with gorgeous Victorian Homes. Elysian Heights has some really nice craftsmany homes, and a few duplexes...pretty much an "A" area. EP and Silver Lake tend to get nicer north of Sunset. Between the 101 and Sunset you have a good mix of SFR's and 2-4 units ... kind of a B area, but still expensive to rent or purchase. Homelessness is becoming a bigger and bigger problem. Rents are skyrocketing although there's rent control much like all of L.A. Lots of new housing developments coming on line in the area, and in downtown. Definitely a cool place to live. Check out theeastsiderla.com for more info

Curbed and Eastsider are good places to look to see how much pushback there is, especially on small lot ordinance projects.  In fact, the pushback has prompted Mitch O'Farrell to propose a re-examination of the original ordinance.

It is a very hot area but most property owners/ sellers know it all too well!

@Hank Buck That petition is great! Just signed it. Small lot developments are great for developers... just please, not in my backyard. 

@Adrian Chu

I live in L.A and Echo Park has definitely been a hip area for a long time now. Prices have only increased throughout the years. 

I agree with @Hank Buck that many people in the area by now probably realize that their area is so in demand and hip that it might be hard to get a deal. Especially on the MLS I don't believe any deals could be had.

I have heard about the small lot developments that are being built..and since there is a lot of old housing stock in the area , and a big demand for newer housing in areas like Echo Park it does seem there is an opportunity there...but I think those types of projects are probably pretty complex versus just rehabbing a single family home since it would be new construction.

Los Angeles is also very tenant friendly and the rent control laws are pretty strong. Even if you are able to develop, it seems there is a high likelyhood of a fight or opposition to the development. 

Personally I think the housing stock needs to be updated and I don't think rent control is a good policy. Some of the most expensive markets in the nation with the highest rents all have the strongest rent control laws: Los Angeles, San Francisco and New York. People live in these units at below market rent for so long and seem to expect to live in them forever. 

Nice assessment @Lee L. , fully agree with your neighborhood breakdown. 

@Joseph M

I have heard about the small lot developments that are being built..and since there is a lot of old housing stock in the area , and a big demand for newer housing in areas like Echo Park it does seem there is an opportunity there...but I think those types of projects are probably pretty complex versus just rehabbing a single family home since it would be new construction.

i'm doing a small lot project down by USC.  it's 18-24 months easy for the project as building & safety are backed up and scrambling after the fire downtown next to their building.  

the small lot concept can be pretty good as it allows you to divide the one property into separately sellable  properties.

p

The best resource for learning about small lot deals is modative.com. That's an architecture firm that basically pioneered doing them... and they have some extremely useful pdf downloads that explain how the ordinance works and what sorts of lots work best.

Thank you @Moses Kagan .  I will check it out.  Looks like I sort of hijacked this thread.  Sorry @Adrian Chu .  I hope this stuff is helpful for you as well.

Originally posted by @David Tipton :

Thank you @Moses Kagan .  I will check it out.  Looks like I sort of hijacked this thread.  Sorry @Adrian Chu.  I hope this stuff is helpful for you as well.

 No worries! Always great to learn more about different things. :)

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