Specialist · palo alto, CA · Member since 2010 · 48 posts · 14 votes
Hello,
I have invested before but Los Angeles is new to us. Somehow on our first trip we found ourselves a "highly motivated" Seller and a gorgeous SFR house in Studio City. Before I knew it, we were in contract. We have 60 days to figure out how to use this gem (seller gets 60 day rent back due to personal circumstance.) 4 beds, 4 baths, new pool, new hot tub, newly remodeled 2012. Flat part of SC near 101. Projected rent will easily cover expenses with cashflow $750-1000/month. But is this best use of this type of property? What has been your experience with "corporate rentals" (or 30 day rentals) in this market - and how do I get connected? I don't live in LA so can't stomach a night-to-night rental - the amount of work would knock out any gains based on my experience elsewhere.
Investor · Pasadena, CA · Member since 2015 · 269 posts · 189 votes
7y
You can hire a property manager or reach out to agencies that take care of short term (> 30 days to 3 or 6 months) rentals. You can also post on Craigslist or advertise yourself. Posting on Airbnb works too but restrict to only > 30 day rentals. There's always travel nurses or people moving in and out of LA or I imagine the studios have someone working on a movie or TV show that need short term housing.
Investor · Member since 2018 · 259 posts · 74 votes
5y
Hi @Carla Carvalho, I'm very interested in hearing what you find out about this. We own a home in Sherman Oaks next door and want to do something similar. You know you have to rent for a minimum of 30 night stays in Los Angeles unless the home is your primary residence right?
That's our predicament as well. On top of that, there is a moratorium on evictions, so I'm concerned about renting to someone and having them refuse to leave. Therefore, I'm also very interested in corporate rentals as well, but not sure where to start.
Specialist · palo alto, CA · Member since 2010 · 48 posts · 14 votes
5y
@Kim Hopkins we have a long term tenant in place. If you play your cards right, you will easily get a tenant in a good neighborhood in a nice home. In MAY (mid-lockdown,) we had 25 people come to our Zillow-listed open house.
Specialist · palo alto, CA · Member since 2010 · 48 posts · 14 votes
5y
@Kim Hopkins also consider not just credit score but also financials. Do they have a lot of money in the bank as a buffer? Consider their profession too. Are they someone who will likely be without cash flow for months and months with the lockdown? We have 2 tenants who are crushing it despite the pandemic: a wine store owner and someone who owns an online business that sells products in the <$200 price range.
Investor · Member since 2018 · 259 posts · 74 votes
5y
@Carla Carvalho Great points except we don't want a long term tenant because we want to visit. The only scenario would be if they're willing to vacate when we're there but I don't know if that's realistic.