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Contributor
LAPropertybuyer
Posts: 34
Registered: ‎03-05-2012
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4 unit FHA listing feedback

What do you think about this listing? Likes, dislikes? http://www.redfin.com/CA/Los-Angeles/11213-S-Figueroa-St-90061/home/7317871
Trusted Contributor
DowntownVentura
Posts: 128
Registered: ‎06-22-2009

Re: 4 unit FHA listing feedback

1. That is a real **bleep**hole. I have stayed from this class but I know people make a lot of money with it. Basically, you just do as little maintenence as possible and hope for the best. Cameras so you can monitor it remotely?  I would pass

 

2. Even if you are interested in proceeding, the rents on the rent-controlled units are horrible. Your expenses will exceed those rents. You would have to make all your money on the other two. I would not depend on their 'projected' rents.

 

3. That is a real **bleep**hole

 

4. See #1 and #3

Trusted Contributor
RyneW
Posts: 149
Registered: ‎02-28-2012
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Re: 4 unit FHA listing feedback

Between all of the units, will it pull 10k a month in rents?

Contributor
LAPropertybuyer
Posts: 34
Registered: ‎03-05-2012
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Re: 4 unit FHA listing feedback

Ryne- I'm confused about your post. Where is the value of 10k coming from?
Contributor
LAPropertybuyer
Posts: 34
Registered: ‎03-05-2012
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Re: 4 unit FHA listing feedback

Venture- thank you for stating you know others who make a lot of money in this demographic. It's an income property. Profit is good. I looked at the city records for activity and it has recent permits, so I don't think this listing applies to the "little maintenance" argument. I understand the rent control units have low rents and you would avoid the demographic because it requires more attention than others. I think that could be resolved with a cash for keys. I also see it has new C of Os and has been inspected and permitted. The security cameras are a nice feature, I haven't seen that on many. May be of value for identifying violations of lease. I like the concrete lot for the low maintenance. Thanks for the feedback.
Trusted Contributor
Craftsmanluv
Posts: 130
Registered: ‎03-18-2010
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Re: 4 unit FHA listing feedback

[ Edited ]

First of all, you can't buy investment property with FHA unless you plan to move in and become part of "that demographic". So plan on minimum 25% downpayment for investments of this sort.

 

Second, your cash for keys idea is regulated by LAHD rent control laws... $7000 for a short term single male tenant, or up to $19,000 for a long term elderly family with kids. And that is only the cost for you to move in to one unit and become part of "that demographic". You cannot legally clear the place out by offering them donuts on the front lawn and then changing the locks while they're out front.

 

Third the projected rents in that listing are total dreamland.

 

Fourth, I would never bailout some speculator investor who bought the place for $295k 17 months ago and now wants $464k. I want to retire to a private island too, not pay some other guys plane ticket.

Contributor
LittleGee
Posts: 13
Registered: ‎03-15-2012
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Re: 4 unit FHA listing feedback

FYI the city passed an amendment to RSO a coulple years ago that now requires properites with newer C of O's to have rent control if it can be assumed or easily proven (I forget the language) that it was built prior to '79.

 

Silver Contributor
hg213
Posts: 365
Registered: ‎07-21-2009
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Re: 4 unit FHA listing feedback


SenorFish wrote:

First of all, you can't buy investment property with FHA unless you plan to move in and become part of "that demographic". So plan on minimum 25% downpayment for investments of this sort.

 

Second, your cash for keys idea is regulated by LAHD rent control laws... $7000 for a short term single male tenant, or up to $19,000 for a long term elderly family with kids. And that is only the cost for you to move in to one unit and become part of "that demographic". You cannot legally clear the place out by offering them donuts on the front lawn and then changing the locks while they're out front.

 

Third the projected rents in that listing are total dreamland.

 

Fourth, I would never bailout some speculator investor who bought the place for $295k 17 months ago and now wants $464k. I want to retire to a private island too, not pay some other guys plane ticket.


I would agree with all of these comments (although I haven't checked recently to see what the Rent Stabilization Ordinance fees are to displace a tenant to allow the owner, etc. to move in).

 

There is absolutely no way that the $2,100 in "projected" rent is realistic.  The $1,500 may not be too far off if it is rented under Section 8.  But $2,100?  No way.

 

The fact that the original poster was not aware of the Rent Stabilization Ordinance and the limits of what you can do to get tenants out of a rent controlled unit tells me that the OP has not done nearly enough research to even be contemplating buying such an expensive property.

 

I would never buy a rent-controlled property.  Further, I would never buy a property that included 1 BR units.  One bedroom units give you a very limited market of renters, and if you have to evict them for not paying rent, the court costs are high relative to the rent involved.  It's just not worth the headaches.

 

Also, the estimated values for this property on Zillow and eppraisal--not to say that they are accurate--are far lower than the list price.  And the fact that the owner bought it for under $300K is another negative.

 

I would not by this property under any circumstances.

Trusted Contributor
RyneW
Posts: 149
Registered: ‎02-28-2012
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Re: 4 unit FHA listing feedback


hg213 wrote:

SenorFish wrote:

First of all, you can't buy investment property with FHA unless you plan to move in and become part of "that demographic". So plan on minimum 25% downpayment for investments of this sort.

 

Second, your cash for keys idea is regulated by LAHD rent control laws... $7000 for a short term single male tenant, or up to $19,000 for a long term elderly family with kids. And that is only the cost for you to move in to one unit and become part of "that demographic". You cannot legally clear the place out by offering them donuts on the front lawn and then changing the locks while they're out front.

 

Third the projected rents in that listing are total dreamland.

 

Fourth, I would never bailout some speculator investor who bought the place for $295k 17 months ago and now wants $464k. I want to retire to a private island too, not pay some other guys plane ticket.


I would agree with all of these comments (although I haven't checked recently to see what the Rent Stabilization Ordinance fees are to displace a tenant to allow the owner, etc. to move in)...



Tenant displacement fees on page 3:

http://lahd.lacity.org/lahdinternet/LinkClick.aspx?fileticket=kA34UEkbp60%3d&tabid=264&language=en-U...

 

 

Contributor
jthechamp
Posts: 20
Registered: ‎04-16-2010
0

Re: 4 unit FHA listing feedback

I had this one on my watchlist and lo and behold, looks like the asking price just went up over 25k! Ha, seller is dreamin'!