Renting in America Has Never Been This Expensive ( Los Angeles )

[Francis A.]

Interesting article:

http://www.bloomberg.com/news/articles/2015-08-13/renting-in-america-has-never-been-this-expensive

[Kalo (Kyle) Atanasoff]

@Francis A.

Great opinion! Just want to clarify - i share the article as interesting reading based on the article you share.

I personally see the current situation from different angle - it will continue to get worse unless there are changes in public policy that incentives more development...that being sad i strongly belief that LA marker will continue to grow int he next 3-5 years. (Silicon Beach, Olympic games, still resonance interest rate and etc).

Also i agree that the "things" are way more complex to analysis that just put a fact or two together. 

I think is clear enough for everyone that LA market has a lot advantages but also some disadvantages. You pay always (most of the time) premium price because you are competing with not only local people, but people all over the US and even more, people all over the world. To find a property and buy it on 70% ARV - rehab cost - close to mission impossible....2% rule? I would be happy to see 1% rule, which most probably would not going to happened. GRM bellow 8...or 10? not going to happened...

FHA and 5% down...well...it easy to save the down-payment, however in order to get approved for 750k FHA property you probably need to make 120k/year salary and "things" goes on...

Button line - Yes, LA market is one of the best and i strongly belie in that. It's just to an easy market to step in and it's defiantly not "no/low money" market.

Best,

Kyle