All Forum Posts by: N.A N.A

It is Beverly Hills (aka Beverly Hillbillies) Was not expecting this type of problem.....

I have a steel spine and am not afraid to confront anyone, my significant other is from another culture and she has a speed bump effect on my natural approach, hence I am here searching for best practices.

I spoke with BH code enforcement and they said it is a civil dispute with other building owner and they offered to provide free mediation prior to bringing legal action if he remains unhelpful.

fyi (camping = air mattress) wanted to get a sense of noise, parking, tenant behavior so I spent two nights - apartments rent for 1500 to 3500 on block depending on size and parking/lobby etc.

Took possession of family apartment building in Beverly Hills. Just returned from camping in vacant unit to get feel for property. Discovered severe problem with noise from tenant living in building next door.

Basically a woman with a teenage son and a toddler live in lower level apartment next door seem mentally unstable. They live with windows open and no curtains - toddler is allowed to scream and sing song at mind boggling volume. Mother drops f bomb and talks back to her in loud sing song voice. Mother sings at full volume (decent Whitney Houston voice) at all hours - I documented with smart phone 11pm, midnight outbursts of song, or toddler allowed to bang and scream for 5 minutes to be let in to bathroom. Bath time is a nightmare. Sound penetrates with doors and windows closed and new air conditioner on.

Seems my tenants have been dealing with for over a year - first we have heard of it, but apparently last summer adult male occupied also and fights would last to 4pm nightly. Tenants have called police and child protective services in past. Then a dog was apparently barking non stop and tenants called police and it has been removed. In the past when tenants knock on her door they are insulted and threatened.

I called neighboring apartment owner and even though she is 2 months late on rent he is scared shitless to do anything and he continues to accept rent when it is sent. I told him I would consider holding off on improvements to my building and selling if nothing could be done, however he is scared.

This situation is severe - I purchased a thousand dollars of trees to attempt to create some sound buffering and I am having new windows installed.

I am really conflicted as to prospects for investment. My ability to fix up tired units and get market rent is questionable and I don't know if I could rent vacant unit out for market rent without being misleading to new tenant. I also feel challenged to ask for the next 10 percent rent increase from my existing tenants who have been living through hell?

Other than working with a non emergency code enforcement officer - which may result in vandalism and retribution from mentally unstable person - any help would be appreciated.

I am new owner of 7 unit apt. building in Beverly Hills - Elderly couple has occupied apartment for 10 years without rent increase prior to 6 months ago. They are month to month (not title 5) and they are difficult and demanding to manage from out of state. I found shopping carts stored in laundry room, in carport (hidden and covered) and I backed my new car into one which appeared mysteriously. Determined couple responsible.

Actions taken.
1. I knocked on door and notified them storing carts on property was violation of lease, and abandoning in alley was a blight on neighborhood. Requires permission of store owner and should be returned promptly, not left or stored. They became aggressive, admitted it was them and slammed door in my face. I received a voice mail stating they did not appreciate a knock on door as communication and since she had a "disability" (doubtful as she is fully ambulatory) they would be storing carts in laundry room.

2. I wrote a handwritten letter notifying them I was terminating there tenancy effective 65 days from Today when I would be sending a certified letter. I thanked them for their tenancy. (I spoke with BH code enforcement and they told me I could terminate lease for "no reason" as long as I did not achieve higher rent than allowed under rent control.

3. They had previously called my handy man directly requesting the handle on the new toilet I bought them replaced as it was "starting to break". The handly man had told them he would be by Monday mid morning. I sent my brother over to look at it and he was verbally abused and refused entry. I knocked on the door and was told only the former handy man would be allowed in, that they refused to speak with me and slammed door in my face.

I documented conversations and sent email to myself to time stamp.

Question

1. What are best practices. Do I need to lawyer up? Issues to expect.
2. Any advice on a good remote monitoring video surveillance system

Thanks[b]

I am new to being a landlord as I inherited a building out of state in Beverly Hills CA. I have a few questions as to strategy - I am new to owning a commercial building and have no clue as to best strategy, market appreciation prospects etc.

Here are the facts of the case -

7 unit apartment Building in Beverly Hills, very desirable neighborhood,(Appraised at 1.9m - Market cap 3.5% built in 1956. Rent control issues = one of 7 units title 5 rent control tennant approx $600 under market - aged 82. Five of 7 units rented - most tennants have been in bldg for years - rents are 15% under market for current condition (pretty bleak and original dreck) raised them max 10% last April - all complained but stayed. One of 7 units I just spent 30K renovation including $5500 for electrical rewiring of unit ?? (ripoff?) plan to move in for 90 days as part of relocation to california) Put new roof and windows on bldg in 2012 (plus reno = 100K spent total) Building looks dated needs new facade, laundry room make over, and and 35-50 K for change out plumbing in addition to renovation of 6 apartments to make perfect. Landscape is really nice - done in 2011.

Since I do not plan to live within 1 hour of BH long term - thinking I want to maximize this opportunity before 1031 exchange in future. Handyman expenses cuts into Cap rate otherwise I manage. (note - BH rent control allows 10% annual increase, 2.3% on the one title 5 units- other leases can be terminated but no rent increase due to termination is allowed)

QUESTIONS

1. What are the upsides to holding - how best to achieve ? What are the prospects for this type of investment with such a low cap rates.

2. I have cash to invest in the building - is this a good investment? Would you do the plumbing (not critical but needed) Would you rewire the entire building? Would you do the facade and laundry? What is the order of battle?

3. If it makes sense to renovate these units - do I lipstick the "pig" or do I aim for the yuppy tenants in the future, what budget?

3. The tenants are used to having a great location, below market rents, and having little or no improvements done to units. I can raise rents until they leave and fix up apartments - or do I do "nothing" raise rents until they leave, paint and then sell in 2 to three years.

My goal is to maximize this opportunity, and realize the best combination of appreciation and income. I have the income and cash on hand to do what is smart - so I am interested in the best solution based on selling in 2 to three years - unless a long term strategy is "best".

Thanks