All Forum Posts by: Geo Tan

@Alma Mills That's a really great point! I never thought of it that way. Your example would be the opposite of what this property is going through since the multiunit was built after the rent control deadline date. So I'm assuming what she was trying to say is that since the front unit was a sfh and was not in rent control, if they build 2 more properties after the rent control deadline and renovate the older front unit, all the units would not be subject to rent control. But since for you, the older unit was subject to rent control I'd assume the front unit in this one would be subject to rent control while the other 2 units in the back aren't? That is quite confusing hahaha. I may actually make a post on that alone to see what other people can bring to the table on that. Always appreciate the response!

@Matt Mason The zoning laws and permits checked out in terms of building the back building with 2 units. Can you give me a little more information on what you said at the end in regards to having been listed in 1920s as a one unit ? So if it was a sfh in 1920 but they built two new properties and fully renovated the front unit in 2016 it will not be subject to rent control? That's definitely new information for me so I'll research more into it. Thank you for the response!

so to go further into detail, she stated that since they did a full remodeling job on the unit while vacant that the property will show as built in 2016. Quite odd.

So I viewed a property today in the North Hollywood area and I was confused by what the person showing me the property said.

Basically, the property I viewed had one unit in the front (from before construction) and two units on top of each other behind that unit which was built brand new. So ultimately the seller bought the property with one unit in the front and renovated it along with adding two units behind it. When I asked about rent control issues with the property they said that since the front unit (built somewhere in 1920s) was vacant when they built the two units behind it, it is not subject to rent control?

From my understanding, as long as even a single wall remains from the old property, it's build year is the same as the original unit (1920s)?

Or I asked if she meant that the initial rent isn't rent capped but it will be after the tenant moves in but she wasn't sure and said all she knows that this property is not rent controlled...

Can anyone tell me if this lady is right?

Here's a link to Los Angeles Short Term Rental Alliance:

http://www.la-stra.org/

They seem to be actively working to fight the regulations they are trying to pass.

So just to give an update on where this REI journey is taking me.

My recent gains has allowed me to be able to do a down payment of $600k-$800k which has now allowed me to look at properties from the $2mm-$3mm.

It's still the same concept but wanted to see if there was any difference now that the numbers have changed.

So for example let's say I have $700k to play with and am looking at two routes, purchasing one 2.5mm to 3mm dollar property or getting two 600k properties all in Los Angeles.

If all properties in this example are duplexes for the sake of simplicity, I still think it's a better move to go with the two duplexes that are 600k each and pay over 50% down in order to cash flow well and still earn the appreciation incentives of Los Angeles (Which if my memory serves me correctly, was somewhere around 5-6%). I'll have paid off the mortgages on the two properties much faster than the 1 expensive property since I have cash flow to supplement the mortgage payments if needed. It also seems much easier to rent out a space that's much more affordable for the residents of Los Angeles.

I get the whole part of using OPM is better but I still feel like this would be an obvious choice with less risk?

Am I missing something here?

Hey @Eric Dowling! If I do make it to the hearing which I plan to, we should definitely meet and exchange information. Glad this post helped at least one person.

Hello Bigger Pockets family,

I just wanted to share with any bigger pocket members in the area that there will be a public hearing on May 21st at at the Deaton Auditorium in Downtown LA at 10AM regarding vacation rentals.

I have been looking into vacation rentals as a potential venture in the LA area since the numbers look very appealing and I know a few friends who thrive on that industry in LA already. It seems like one of the better ways to see actual cash flow from LA properties in my opinion and have seen many people prove it. Unfortunately as I was researching I came upon the following links:

News article:

http://www.scpr.org/news/2016/04/15/59666/airbnb-s...

Notice of hearing:

http://planning.lacity.org/ordinances/docs/HomeSha...

I'll most likely attend to listen in on how the hearing goes along with maybe speaking up myself if I have anything to add. I just figured this may be useful information to current bigger pocket members who are planning on pursuing vacation rentals in LA using AirBnB, VRBO, etc.

From what I read on the article, it seems like the city is trying to pass these several actions into play immediately:

1. Require third party sites like AirBnB and VRBO to give out information on all listed properties

2. Limit the vacation rental days to 3 months (90 days) per year

3. Fine hosts who rent out longer than 3 months ranging from $200 to $2000 per day

4. Require hosts to obtain the hotel license with 15% tax

That's what I got out of the article anyways.

Just figured I'd update people who didn't know and if anyone knows more about this ordeal please do enlighten me and anyone else who may be interested.

Thanks!

What do you mean @Steeve Roberts?