Are rent control building worth pursuing?

[Chris Penny]

I live in Los Angeles and there are many older building that are rent controlled.  l always assumed that a smart investor would be reluctant to purchase such a property because it would have limited upside.  The strategy I am pursuing is buying multi-family units that are underperforming and improve the property so I can raise the rents, making that property more valuable so I can refinance and get most or all my money out of that deal so I can use it on another.   Seem like rent control would slow that process down too much.  But I am a newbie so wanted to confirm my suspicions.

Thanks.

[Jeff Greenberg]

A poker in the eye would be more desirable.  True story, a friend has a multiunit in the LA area.  One of his tenants got a note from a doctor allowing her to have a therapy dog in a no pet building.  She went to another doctor and got another note and another dog.  She then had a fence erected in the property's common area.  She would put the dogs in there and they would bark away.  The neighbors complained but after thousands on legal expenses the the dogs, the tenant and the fence is still there.  He tried to evict her, but as long as she pays her rent he is helpless.  He lost his job and wanted to take over one of the units.  Of course he chose hers.  Thousands of dollars later, she is still there.  The happy ending to the story is, he is finally selling the property to some other Investor(sucker).   I have other rent control stories, but I think you get my point.