Thoughts on Rent Controlled Areas in Los Angeles (Los Feliz)

[Franklin Marquette]

Hey all,

I am new to the forum and new to real estate. Currently looking at a ~$1.35MM duplex in the Los Feliz / Silverlake area. This area is pretty hot right now in my opinion given it is transitioning, but all of it is rent-controlled for older buildings. The duplex was built in 1936 so does fall under the rent control provisions. However, I will be moving into the property and doing a substantial renovation so can evict and reset rents to market.

My concern is not the short term risk of rent control as I have ways around that (mentioned above). It is more about whether I should be concerned about the long term. I am not that concerned right now given I think there will always be mechanisms in place to avoid it (move into one of the units as an owner, move a family member in, do another renovation, etc) but want to make sure I am not making a big mistake here.

Thanks all!

Franklin