Not now, maybe later. That’s it, in a nutshell. Here’s what I mean: On your first building, likely a 2-4 unit building acquired with an FHA mortgage, you don’t want or need a manager. First, you need to learn a bit about the business – what it’s like to fill vacancies, collect rents, deal with maintenance … Continue reading “Should I hire a property management company?”
Author: Moses Kagan
What the %#&^ is a “cap rate”?
Can’t remember what a “cap rate” is? Put simply, it’s the return you get on a building in one year, ignoring the financing. To calculate a return, you need to know how much profit you get in one year in exchange for investing a certain amount of money. So, for example, if you invest $1,000,000 … Continue reading “What the %#&^ is a “cap rate”?”
How do apartment buildings increase in value? And how can you benefit?
When you put a bunch of money and time into an asset, you want it to increase in value. Obviously. So you might ask: How does an apartment building increase in value? Remember: An apartment building investment made correctly should cashflow to you every month, so you make money as you go along. But an … Continue reading “How do apartment buildings increase in value? And how can you benefit?”
What can go wrong with an apartment building
Anyone who tells you that any investment is risk free is full of ish. People thought government bonds in Europe were risk free and look where that got them. In order to make sure you don’t think I am full of ish, here’s a list of the things I can imagine going wrong with an … Continue reading “What can go wrong with an apartment building”
Rules of Thumb for Los Angeles Apartment Buildings
Get this through your head: Every apartment building is different. Even literally identical buildings differ because they are by definition located on different pieces of land. That being said, there are some simple rules of thumb for quickly coming to grips with the numbers behind a building: Cap rates in Los Angeles currently range from … Continue reading “Rules of Thumb for Los Angeles Apartment Buildings”
Is Echo Park 24% better than Highland Park?
Landlords must think so. After all… A 1 bed / 1 bath apartment in Echo Park rents for $1,150, compared to $925 in Highland Park. That means EP comes in 24% higher, even though in Highland Park you almost always get parking and in EP, you almost never do. Here are the other highlights of … Continue reading “Is Echo Park 24% better than Highland Park?”
Open Challenge to East Hollywood Landlords
Guess what we get for one bedrooms with no parking on Westmoreland in East Hollywood. Give up? $1,500 / month. Here is an ad for the 2 bedroom unit that we have on the market now. We’re asking $2,000 and we’ll definitely get it. [Edit: We got it.] On a per square foot basis, those rents … Continue reading “Open Challenge to East Hollywood Landlords”
Should you post a “For Rent” sign on your building?
No. Or, at least, not unless your building is on a high traffic street. Why? Because posting a sign does two terrible things: It makes your building look cheap. Useful signs are large enough for people driving by to see. Signs that large are almost always tacky and horrible. Do you want your building to … Continue reading “Should you post a “For Rent” sign on your building?”
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”
Is Silver Lake Twice as Cool as Highland Park?
It might be, because it costs twice as much to rent a two bedroom apartment in Silver Lake. A 2 bed / 1 bath apartment goes for $1,100 in Highland Park, which is nearly 2x the $2,195 it costs in Silver Lake. We’ve just completed our February Rent Survey for Highland Park. We looked at … Continue reading “Is Silver Lake Twice as Cool as Highland Park?”