The problem: In poorer areas, very few owners use permits when they fix / upgrade their apartment buildings, so most of the work done isn’t to code. If you buy one of these buildings with the intention of upgrading it, you’re faced with two choices, both of them bad: 1. Pull permits for your work, in which … Continue reading “Solving the rehabber’s dilemma”
Author: Moses Kagan
Skid Row liquor license controversy
Check out this article about the controversy surrounding the opening of a restaurant called Great Balls on Tires which intends to upon at the New Genesis apartments, a mixed-use project with both indigent and moderate-income residents, along with retail space, on Skid Row. As you might expect, a bunch of advocates for Skid Row residents … Continue reading “Skid Row liquor license controversy”
The easiest way to make money with apartment buildings
Follow this recipe: 1. Choose an area in Los Angeles which is currently marginal but showing strong signs of improving 2. Find a building in reasonable condition 3. Purchase it at a price which is less than or equal to 11x the total annual rent 4. Keep your leverage reasonable – like 70% LTV maximum … Continue reading “The easiest way to make money with apartment buildings”
1947 Clinton St is sold
Apologies for the long gap in posts. As you will see in a moment, it’s been a busy run-up to the holidays for us here at Adaptive. On Friday, we closed on the sale of 1947 Clinton St., the fourplex we bought in October of 2012, renovated, and put on the market right at the … Continue reading “1947 Clinton St is sold”
How to solve the housing affordability crisis
Per the NY Times today, there is an acute shortage of affordable rentals all over the country and primarily in cities where the economy is doing well. The reporter spends a bunch of time detailing how terrible the situation is, and very little time talking about solutions, except to point out that the government could … Continue reading “How to solve the housing affordability crisis”
What’s the best way to buy with a small downpayment?
Today’s NY Times has an interesting comparison of 5% down FHA and conventional loans. (For more about the basics of FHA loans, read this.) It turns out that the increased mortgage insurance premiums currently demanded by FHA make FHA loans a worse deal than 5% down conventional. If you’re considering buying with little money down … Continue reading “What’s the best way to buy with a small downpayment?”
What could possibly go wrong?
Per Adrian at Curbed, the City Council just voted to allow homeowners to paint murals on their houses in Echo Park and some of the surrounding areas. If you think this is going to end well, check out the handiwork of one aspiring artist in the area, thoughtfully painted on the front fence one of … Continue reading “What could possibly go wrong?”
Reconsidering the front set-back
One of the more annoying aspects of LA zoning is the requirement for large front setbacks in almost all neighborhoods. What’s a “front setback”? Simple: It’s a front yard. In your standard R1 zone, which is the zoning for most single family homes in the city, the required front yard is 20% of the depth … Continue reading “Reconsidering the front set-back”
Know anyone we can help?
Have been mulling over an idea for a few months that I’d like some feedback on. Here goes: I would like Adaptive to help one deserving family which currently rents become owners of a small apartment complex. Here’s how it would work: We identify a family to help We help the family find and offer … Continue reading “Know anyone we can help?”
State of the market
I’ve only been doing this for five years or so. I jumped in in 2008, meaning that I’ve never seen a normal, healthy, strong real estate market in Southern CA. I think I’m seeing one now, and I have to tell you: It’s not pretty for multifamily investors. Go check out the apartment buildings listed … Continue reading “State of the market”