Los Angeles area Rental Arbitrage

[Kevin So]

https://www.biggerpockets.com/blog/generate-10000-passive-income-monthly-quitting-day-job

If anyone else read this recently, was wondering if you had similar experience with doing so in LA area. I was wondering how to go about finding a landlord that would allow subleasing

[Neil Henderson]

Would not be legal under Los Angeles' new short term rental ordinance to the best of my knowledge.

[Kevin So]

That i believe mostly applies to city of LA and unincorporated areas. So other areas are still game for now.

[Kevin So]

Has anyone had any experiences with this in the greater LA area?

[Rick Albert]

My investor clients and I have been asked this of our properties multiple times.  The issues are the following:

1. It has to be your primary residence at least 6 months out of the year.

2. If the property is subject to the Rent Stabilization Ordinance (basically rent controlled units), you are not allowed to.

3. ADUs do not qualify.

4. Because Los Angeles is a litigious City, as a landlord I would be concerned with the liability (someone getting hurt, squatters, etc).  This is more of my lack of understanding but I've never seen anyone actually try to explain it to me.

With that said, I think with the right structure and payout a landlord may be interested.  Assuming you qualify to rent it out on your own, I would look for rentals that have been sitting on the market and having that conversation with the landlord.  If someone is desperate enough, they may do it.