All Forum Posts by: Jacqua Le Fleur

This is a very big deal. Our beloved Mayor Eric Garcetti is behind it, as is many other CA politicos. I find it so hypocritical of Eric, a person who has been spoon-fed his entire life, and openly ignored Elysian Valley while showering Silverlake with prosperity during his younger years in office. This guy, and probably most of the other political figures, just want votes. I want to empathize with the renters who have it hard to stay on top of the rent, but I worked my behind off for many years, and took a huge risk to become a mom and pop landlord. Why should I provide essentially free or damn near free housing to a person who demands it, while Eric Garcetti does a victory lap around LA and tries to use this "humane" accomplishment to springboard him to the Presidency. Screw that! Garcetti sold his Echo Park home about a year ago for a whopping $1M (roughly)! Why didn't he keep the home and rent it out to a family for free? That would have been the greatest PR for his stupid campaign for President.

Great insight @Geo Tan. Thanks for sharing, and yes, the push-back from the community definitely has an impact. On one end, I would appreciate the quickest "appreciation" of my property (pun intended). But on the other side, I wouldn't mind seeing if Boyle Heights could create a positive renaissance age that is led by both it's own community and the newcomers. Although property appreciation would take a bit longer, the experience of a renaissance would be a once in a lifetime experience. 

I think you are referring to "cash for keys," be it through a formal rent control method,  or through ad hoc agreements with the tenants (cash and free rent for "x" period of time, etc..). This method of creating a wanted vacancy is possible and frequently completed in Boyle Hts and other rent controlled areas of LA. But this brings me back to my original question and general observation on Boyle Heights. It looks like property owners are reducing their sales price because they are "building" in that extra cash outflow that the new owner will have to pay to vacate the current units. Its an informal discount to entice a would be buyer to go through that process, a process that we see can backfire (Rent strikes, collective bargaining by tenants opposed to relocate ). So dont the lowered sales price affect all other comparable sales in the area? What if I paid more for a triplex because it was delivered bacant from the get-go, wont these "discounted" fully occupied properties for sale hurt my equity? 

Yes, the market will definitely have an effect on the pricing, but I guess my question was whether or not Rent Control (vacant or occupied under rent control), and its effect on the sales price, would be factored in by an appraiser. Rent control, I feel, becomes an additional "market factor," and it seems to be the icing on the cake of these units for sale in Boyle Heights.

Greetings All,

I have noticed recently that multifamily properties in Boyle Heights are being listed for sale at very competitive prices. At surface level it seems like the general pricing for Multi's have declined in Boyle Heights since 2016. Not exclude , I see that the Multifamily's are listed at lower prices because they are being sold as is, fully occupied, and rent controlled. The pricing makes sense when considering these factors but do Appraisers factor in the same variables? Would a Quadplex sold for $700,000 under these circumstances hurt the value and potential equity of a triplex that was purchased, fully vacant, for $650,000, 1 year prior? Do appraisers price in these circumstances or do they only care about the selling price, square footage, lot size, and number of units?  I am starting to think about my next maneuver and I am a little concerned about the effect that these competitive prices will have on my investment. Thank you very much.

Best,

I bought a duplex in Boyle Heights about 2 years ago. I live in the front and rent out the back unit. I haven't had any negative experiences with that group of immature racist complainers. The movement is so annoying in that it is based purely on bullying and racism (in my opinion). The group claims to be in favor of uplifting the community by keeping rents low and blocking any investment in the community. I don't think their steam will carry through though because it seems that most of them are all immature, angry, individuals, and all are in their early 20's. Furthermore, they have created tension with long standing community members and community advocates via social media, and blogging. It baffles me how a handful of people think they can dictate who is allowed to be in "their City." I think they need to get off of the pitty-potty and instead of investing all of that time spewing hatred online, they should be hitting the books; they could have finished their masters degree by now. 

@David Dachtera Thank you. I will double check

@David Dachtera Openly stating my income, credit, occupancy (in accordance with HUD and California code), and background check can get me in trouble? I am planning on accepting all applications, accepting the best candidate and then informing all other applicants that someone else was selected. This approach can still land in me in a pickle? Thanks.

@daviddachtera. Openly stating my income, credit, occupancy (in accordance with HUD and California code), and background check can get me in trouble? I am planning on accepting all applications, accepting the best candidate and then informing all other applicants that someone else was selected. This approach can still land in me in a pickle? Thanks.