In addition, you would need enough working capital to pay for insurance (which will be going up a LOT in Los Angeles) and to pay for property taxes.Don't buy this unless you have substantial resources and a cash cushion to keep yourself safe.

Property taxes creep up, exterior repairs , and a brand new HVAC last year wiped out $11k of reserves.

I have experience managing this on multifamily properties as both an owner and a lender.

There’s a ton of investment pouring in, job growth, and a growing demand for housing.

A little more info, I am doing a full cosmetic rehab on one of the units and a lighter one on the other but I am assuming if I am going to split the utilities I should do that prior to any rehab. 

I don't really have much to add to the discussion other than to say make sure the property you're interested in buying works both as a STR and a LTR.

As more people placed more properties in STR inventory, and as more municipalities taxed and regulated the industry, the profitability of the overall industry has reverted to a much more aligned (lower) risk adjusted return.  

Greetings everyone and a Happy New Year!

It was a 50% of one months rent and a $100 increase in rent. 

I am not a PL user but I do have pricing software and a revenue manager.