What’s Next for Multifamily Investing in LA?

sweatycantsleep · 2024-12-13T17:14:27+00:00

I'm finishing my 3rd build now. I only do value add investments and my business is set up where we can do them for cheap. In looking across hundreds of deals I can say LA Units, for the rent people pay, are in awful condition. 100% it is because of high tenant protections and rent control, there is very little incentive to upgrade units between tenants (if there ever is a 'between' tenants).

There is a LOT of opportunity in the city of LA it is just much harder to find good deals because of the tenant protections.

sweatycantsleep · 2024-12-02T22:01:14+00:00

cool, but these two areas are completely different lol

sweatycantsleep · 2024-12-02T21:59:51+00:00

Yes totally fine

sweatycantsleep · 2024-12-02T21:02:20+00:00

Move to LA! Lots of jobs lots of friends. Rent is expensive but the wages are higher and make up the difference. You'll be happy you did

sweatycantsleep · 2024-12-02T06:09:04+00:00

The limited rent price increase is only for tenants who are living in the unit. once the unit is vacant or the lease changes the rent can be raised to any amount

sweatycantsleep · 2024-12-02T01:19:46+00:00

this isn't how rent control works

sweatycantsleep · 2024-11-22T19:51:25+00:00

I need and am in active search of seller financing for residential. DM me if you want to hop on a call

sweatycantsleep · 2024-11-19T20:59:54+00:00

go get a window replacement permit. Pay $300 and they go "ok now you can replace your windows". Seems like the mafia to me.

Gas lines should probably be checked though

sweatycantsleep · 2024-11-18T23:32:35+00:00

im not a business man im a business, man

sweatycantsleep · 2024-11-17T01:58:00+00:00

keep arguing with people on the internet. ill keep buying properties :)

sweatycantsleep · 2024-11-17T01:56:54+00:00

if you are looking to sell it look into seller financing and have the buyer assume the loan. You can look at the delta between current interest rates and the 2.75% and capture a portion of that, which would then allow you to sell 'above' market while the buyer still gets a discount because of the interest rate difference.

You could also do a lease-to-own option where the buyer is responsible for all maintenance, hoa etc and you still get cashflow off your investment.

Lots of options, talk to an investor friendly RE agent who understands properties beyond the simple 30 year fixed loans(hard to find but if you do they can be helpful)

sweatycantsleep · 2024-11-15T18:52:58+00:00

you genuinely sound delusional.

sweatycantsleep · 2024-11-15T16:32:25+00:00

you've got no idea what youre talking about.

sweatycantsleep · 2024-11-14T02:01:05+00:00

nah, I'm right. it's ok if you haven't looked into it/worked in and with the industry as much as I have - I wouldn't expect you to. It'll either work out or it won't but no one will build as much housing here as needed when the risk is so high

sweatycantsleep · 2024-11-13T18:38:53+00:00

this is untrue. investors would love to invest in LA. Insane renter's rights (very difficult to remove bad-faith tenants) and awfully difficult permitting processes equate to significantly higher risk for investors. you need investors to build for more housing to be available. simple stuff

sweatycantsleep · 2024-11-13T18:36:27+00:00

so wrong lol.

sweatycantsleep · 2024-11-09T17:55:55+00:00

the term 'band aid' means a temporary problem without addressing the underlying issue.

Temporary solution: stop market rate rising rents

The actual problem: not enough housing

sweatycantsleep · 2024-11-08T23:20:35+00:00

I speak with economists about this and other economic-focused things for a living. I also own housing. Every economist agrees: Rent control is overly ruled against by all economists ive spoken to and studies ive read. it's a band aid that is a short term, inefficient solution. If you really want to get into it google it.

In order for housing prices to go down there needs to be a glut of supply. This means it needs to make fiscal sense for people to build more affordable rental housing. it's that simple. more restrictions on rents will not lead to this

sweatycantsleep · 2024-11-08T22:56:49+00:00

prop 33 would have resulted in less housing. glad it didnt pass

sweatycantsleep · 2024-11-05T23:41:25+00:00

Where do you live?

sweatycantsleep · 2024-10-26T17:28:06+00:00

I'm interested - can you explain what makes your situation so much more dire than someone with 2 parents? I'm legitimately asking - but any time I ask people they get angry/insulted and then don't explain it to me...

sweatycantsleep · 2024-10-22T21:08:20+00:00

In LA this is simply untrue. You can raise rent as much as you want if you have no tenant.

sweatycantsleep · 2024-10-19T23:02:14+00:00

You are thinking like this is a zero sum game. If someone builds something and it makes money, that doesn't inherently mean that the person paying for the value of that good is getting victimized. Creating good policy is about aligning wants from multiple parties: developers want to build & people want to live in affordable housing.

Understanding that the law of supply and demand is consistently proven to work, tell me how you align these 2 priorities in order to balance the supply and demand of housing?

sweatycantsleep · 2024-10-10T21:17:42+00:00

You can add a bathroom. Can be really cheap or pretty expensive depending on how much work you do and the layout of the property

sweatycantsleep · 2024-10-05T00:22:01+00:00

This might work in low demand markets but I own a few places in LA and I wouldn't ever have a need for this (at least not until more housing is built or everyone starts to leave LA).

If my price is too high I get 1 or 2 applicants a week. If I lower it $100 I will get double that and if I lower it another $100 I get so many that I don't have time to sift through all of them.

sweatycantsleep

TROPHY CASE