What does “grandfathered zoning” mean with respect to apartment buildings? To understand that, you first need to understand that zoning in Los Angeles has generally become stricter over time. For a long time, there wasn’t any zoning. You could just buy a few single family homes, rip them down, and put up an apartment building.
If you make enough deals, eventually one goes sour. Here’s one that went sour on me… We were looking into developing some small-lot sub-division homes in Silver Lake. We found a lady selling a house on a properly-zoned piece of land. We contacted her next door neighbor, whose duplex wasn’t for sale, and convinced him
Got some cash and looking for a strategy? Here’s one I like but don’t do myself: Buy a REO single family home on a 6,000 sq. ft. lot zoned R3 or RD1.5 all cash for maybe $300k Rip it down Build 4,000 sq ft fourplex made up of 4 2 bed / 2 bath units,
Happy Monday! Have recently read two great, short pieces on the effect of terrible zoning on cities, in general, and LA, in particular: David Leonhardt’s interview with Matthew Yglesias in the Times. Yglesias talks about how parking requirements and artificial limits on density conspire to drive up the cost of housing (and, thus, living) in
Get it through your head: The land is important! Too many buyers don’t understand that the land component of a property is potentially it’s most important aspect. Why? Well, buildings all fall down in the long run. But land is unchanging and often has potential. What do I mean by potential? Well, in the absense