All Forum Posts by: Account Closed

If so, what was your experience?

Thanks

@Stephen Masek No rent control

@Michael Wolffs - No signs of improvement. And if so, it's a very long way off.

I own a property in a nicer part of LA that I property manage myself.

For my next deal, I'm considering a 12 unit in South Central LA and am currently in contract. The deal makes a lot of sense, financially. However, the area is VERY run down. The building has property management and I'd definitely keep them in place should I move forward.

Ideally, I'd like to drive the property once every couple weeks, but basically never deal with the tenants.

Not sure if this approach is realistic... just dealing with the property management for repairs and collecting rents.

Anyone else in a similar situation?

Been shopping for a multiunit. In many of the listings, the agents sell "a tremendous upside in rents" when listing in rent controlled areas with low rents.

Based on my research, with non-owner occupied purchases it's almost impossible to relocate tenants in rent controlled areas. The ONLY option is to raise rents 3%.

Am I missing something, or is this indeed a sales pitch? Thx!

@Joshua McGinnis -- This would be non-owner occupied and I'd be putting around 25% down. Most of the lenders I know only deal with 4 units or less, so I'm wondering who to reach out to exactly for more than 4 units.

Thanks for your insight!

When searching for a loan for 4 or more units, would I reach out to a mortgage broker, or go straight to a bank?

Thx!

@Kevin Young - Thanks for the link! I'll check it out.

@Giovanni Isaksen Thanks for the insight! Very helpful.

Working with an investor who wants to put an offer in on a 4-unit building in Los Angeles. NON-Owner occupied. 1 vacant unit. 3 occupied units each with equal rents that are about $700 under market rate, with long term tenants who's rent has never been raised.

2 questions -

1.) Are there any ways to relocate the tenants (with pay) other than moving family members in?

Another investor I know has purchased many similar buildings in the past and said he basically had to sway each tenant to move with money, and tells me it can be done with some convincing.

2.) Can the current rents be raised more than 3% since they've never been raised?

Thanks!