Evicting from multi-unit rent controled propety to do rehab

[Ewa Reza]

I'm looking to purchase a 4 unit property in Los Angeles (rent control). Tenants are paying $300-$400 for 2-3 bedroom apartments. Crazy. I would obviously start with cash for keys strategy first but in the worse case scenario can I evict them based on Ord. No. 177,901 Eff. 9/29/06. where the landlord seeks to recover possession in order to remove the rental unit permanently from rental housing use? 

What happens when I sell the property? Can new owner bring these units back on rental market?

[Matt Mason]

You are talking about the Ellis Act.  There are serious restrictions on the use of the Ellis Act and it is in effect to essentially let an owner to take an option to go out of business (the rental business).   You can't just re rent the property as you wish.  To rehab the property, you are going to have to buy the tenants out in almost any case in LA.  The only way a property like this would work is if you got it at an enormous discount.  The previous owners likely destroyed hundreds of thousands of dollars in value by their poor management.