All Forum Posts by: Allan Glass

@k.

@Account Closed the ordinance has been around since the mid 2000's and there have been quite a few completed. Most are modern design because that style lends itself well to the row house style. It's also popular among the urban crowd.

Here's one that is unique in the sense it's essentially a rehab. they used the existing bungalows and subdivided the lots. Located in Silverlake called the Maltman Bungalows

@Account Closed it's an R2 lot behind a duplex I own. It's land locked on an alley with no street frontage. I rent it as storage space for one of the commercial tenants across the alley...

Someday I intend to tear down the existing duplex next door and build a small lot subdivision on both lots.

not going to date myself with some older rehabs... but one of my favorite deals was a piece of land I bought for $15k that I rent out for $2,500 per month.

Hi @Ken Cooper I too am a Westsider...

Don't give up too easily there are deals all over Southern California, just not a lot of low hanging fruit.

-A

@Ben Wakefield "crash pads" as many flight attendants call them... You'll find them all around Westchester, Palms, Mar Vista, Inglewood, and other areas around LAX.

As @Joshua McGinnis points out, many landlords get away operating in grey areas of LA zoning laws, similar to Airbnb, but this risk should be understood and addressed by all investors before taking on the challenge.

Many avoid attempting to get a zoning change for such a small project (assuming SFR locations), and rather sign master leases with one or several flight attendant tenants, then allow them to sublet with landlord approval.

Best of luck,

A

@Joshua McGinnis thanks for linking, however I believe point #5 addresses tenants who will not sign a formal lease extension agreement after the expiration of their lease term.

In other words, if the landlord formally (in writing) requests that a tenant sign a new lease extension under similar terms (this also means same rent or allowable increase), after expiration of the initial term, and the tenant refuses, landlord may use that as a cause for eviction.

This has nothing to do with a tenants request to stay. They have a right to stay unless the legal reasons you've linked to have been violated.

quick observation on @Marshall Downs last note. Los Angeles rent control does not let you evict without cause. Therefore you cannot just evict at the end of the lease.

However I believe you can decide at the end of the lease term to no longer accept Section 8 vouchers. Therefore you tenant would be given the option of staying and losing her voucher or leaving with her voucher. If she leaves I believe you would then be able to rent at market.

I'd appreciate hearing any lawyers or owners/managers of Section 8 properties in LA chime in on this.

@Michael Wolffs I agree that decisions should be made on current cash flow vs. future growth. We all make our money on the buy...

In my post I was noting that you can find good properties in bad areas, making the distinction that not all buildings and tenants are bad in run down areas. Apologize if I wasn't clear.

We've had great luck with appreciating values in tough areas.

Best of luck,

A

sorry @Michael Wolffs meant to address @Account Closed in that last post

@Michael Wolffs a few things I'd note about your post. First, there are nicely maintained buildings in run down areas. They tend to do better because they stand out as good places to live and tenants have fewer "good" options to move. However keeping your building nice in a challenged neighborhood takes a plan as noted by @Mitch Dowler and takes hands on attention. If you won't do this yourself, make sure your property manager is well above average.

Next, there is a saying among boat owners that the two best days of a boat owners life are the day he buys his boat and the day he sells his boat. Point being you must truly love the activity to gain pleasure from the expense. If you're simply placing money to earn a return, I'd suggest you find less risky and less hands on investment opportunities. Otherwise you may find yourself a very unhappy "boat owner..."

Best of luck!

-A