All Forum Posts by: Rick Albert

@Steve Jones

That’s my gut feeling too. Looking at Manhattan as an example, they are coming back with a vengeance. Even with people working from home, the younger crowd is going to want to live there for the experience. Plus some of these buildings are newer builds, which means not subject to rent control. That makes it way more exciting.

Hello All!

My wife and I are considering moving to downtown.  She works there and I'm an agent so I can work anywhere.  My thought is DTLA prices are suppressed thanks to COVID, however I believe there will be a bounce back because of the lifestyle DTLA brings.  Therefore staying near Staples Center or the Financial District is our best best.

Here is my dilemma.  It is significantly cheaper to rent there than it is to own (over $1,000/month difference when putting 5% down).  Knowing we would only live there for 1 year, maybe 2 max, it may make sense to rent rather than own.  I already have two properties in LA (I have been house hacking).  One thought is after two years when things go back to "normal", sell.  With the equity build we would either (a) make money or (b) break even which means we lived there for free or at least less than if I had rented.  

Am I missing something?  I feel like there is an opportunity here for the right place but can't seem to find it.

Thank you all!

-Rick

Most of the LA area is competitive, but there is usually one property sitting there for the taking.  You just have to shift through it.  All of my clients in 2020 and most in 2021 have been able to buy at list price or below.

There are ways to make your offer competitive.  This includes rent backs, short contingencies, etc. 

I got my VA loan client into a house hack last year in San Fernando. There are a couple of factors to consider:

-Do you have to be in Burbank?  Burbank is extremely competitive, especially at this price point.

-What factors are you considering in your home search? You can get creative. My VA loan client got below list price when he bought.

Only one of my investors has been approached by a tenant to use that strategy.  Otherwise I don't know anyone who has done it.  It's a strategy that makes sense, but as a landlord would want to make sure I'm protected (appropriate leases, insurance, etc).

@Rudy Necoechea there is no difference than renting month to month.  The City has made it clear that RSO units cannot be used for Airbnb.  Los Angeles County alone is short something like 500,000 units to house people.  The City needs the inventory for their permanent residences.  I'm all for property rights and being able to do what you want with the property, but I do understand their position.  They are working on provisions to make exceptions if you live there and you are renting the SAME unit (a bedroom in your unit for example).  However I haven't read any language that says you can yet.

Here is a link from the City: https://planning.lacity.org/od... 

Also in case anyone was wondering, ADU cannot be used for short term rentals either. Although people do. It really comes down to getting caught.

As someone who lives in his ADU (in the San Fernando Valley), here are a few thoughts:

1. I agree about Pasadena.  Great area.  I have clients looking in the area now.

2. @Nabil Suleiman is correct, your price point is tough.  I would consider areas such as Claremont.  Similar vibe, better pricing.

3. If you are going to build out an ADU, it is going to cost in the range of $100K. If the numbers work, I would explore putting less money down so you have the cash to build it. ADU properties are hard to come by and if they are built, come at a premium price.

Happy to chat more if you would like.

Oh I am very well aware.  I have clients looking in the area and it has been tough!  However there are some opportunities if you look hard enough.

Hello Everyone!

Has anyone invested in the Thousand Oaks area?  How is pulling permits, working with the City on construction, even building ADUs?

Also how has the tenant pool been?  I would imagine pretty decent with Amgen, the hospital, and the University there.

Any and all insight would be appreciated.  I'm looking to do my next house hack in the area.