Why I intentionally have a bunch of vacant apartments

Right now, I have a bunch of apartments sitting vacant. That sounds crazy, right? After all, we are in the business of renting apartments. Having vacancies means we’re intentionally not maximizing revenue, which means a lower return to us and our investors. So what’s going on? Well, we bought a bunch of buildings a few years … Continue reading “Why I intentionally have a bunch of vacant apartments”

Santa Monica’s dumb anti-AirBnB legislation

Am traveling right now (to attend my father’s retirement party – 43 years teaching at RPI!) so am going to keep this brief. Santa Monica is close to passing a law that would effectively ban sh0rt-term rentals where the owner of the property is not present. So, basically, you can rent out a room in … Continue reading “Santa Monica’s dumb anti-AirBnB legislation”

Never Buy a Building with a Non-Conforming Unit

I was once in escrow to buy what I thought was a 16 unit building on Clinton St. in Echo Park, one unit in which was “non-conforming”. The owner had taken a common room and turned it into a studio apartment. The listing broker assured me that this was pretty normal in LA and, indeed, … Continue reading “Never Buy a Building with a Non-Conforming Unit”

Why Westlake Won’t Gentrify

Westlake won’t gentrify for three reasons: the housing stock, the density of apartments and rent control. Regarding the housing stock: Westlake is comprised mostly of apartment buildings built around 1920. Some 1920’s buildings are nice, with great lay-outs, beautiful details, and, in some case, parking. The buildings in MacArthur Park are not those kinds of … Continue reading “Why Westlake Won’t Gentrify”

Don’t walk into a rent control trap

Here’s a dangerous trap set for an unsuspecting buyer of an apartment building by a broker: “Live in one unit and have additional income or use this 2800 s.f. structure as a single family residence.” Let’s say you want to choose the later option. Can you? Absolutely not. At least, not without paying between $20,000-40,000 … Continue reading “Don’t walk into a rent control trap”