Results for ‘Real Estate Math’ category

The $100,000 eviction

I got a call from a regular reader the other day about his building in Los Angeles. I’m going to share his story and I hope he won’t mind. This guy has several great, normal tenants and one low-paying, rent controlled tenant who has a kid with pretentions to gang-bangerness. The kid has done all

How one little equation perpetuates slum conditions

Dave C commented on yesterday’s post asking, in effect, what can be done about a rent control building which is deteriorating. The short answer is: nothing. The reason is one little equation. If you’re the owner of a rent-controlled building with below-market tenants in Los Angeles, your tenants are never leaving. You can’t raise the

Never, ever reduce unit count

One of the contractors I use a lot recently did a rehab of a small apartment building in Silver Lake. He bit a lot of our style, but that’s life. When I asked him about the project, what he told me shocked me. Apparently, the genius who bought the place paid my contractor to turn

How to be a bad broker (episode 387)

Am working with a client considering buying a duplex in LA. The listing broker has the building on the market at $500k. He has no idea what the rent is on the one occupied unit (in what is a rent control building). To illustrate how insane this situation is, let’s review the numbers: List price

I have a bone to pick with all of you

I’ve been recommending to every single reader that they check out my post on “How to value an apartment building” for six months now. In all that time, no one noticed that I had got the equation for calculating a cap rate wrong. Here’s the relevant text with corrections: “To calculate a CAP rate, you

Page 4 of 9« First...23456...Last »