Sometimes people question why it’s so important to get that last dollar of rent. On a $2800 apartment, does an extra $100/month matter? After all, $100 is only 3.6% of $2800… no a big deal, right? Wrong. Here’s how we think about rent in our business: All buildings are worth some multiple of their total … Continue reading “Why every last dollar of rent matters”
Category: Income Property Benchmarks
How not to act in a rising interest rate environment
We’re living in a world of rising interest rates, which are already fundamentally changing the real estate market. As discussed yesterday, as interest rates rise, prices should fall, all other things being equal. That’s because more expensive debt means reduced cashflow and lower returns at a given price. But, all things are not equal. In … Continue reading “How not to act in a rising interest rate environment”
Whole lotta building going on…
In our areas (Silver Lake / Echo Park / etc.), there are tons of small lot subdivision projects in the works. Off the top of my head, I can think of at least four projects going in right now, and there are definitely more that I’m forgetting. So, the question for all of us apartment people, is: … Continue reading “Whole lotta building going on…”
University Park Rent Survery
Today, we’re looking at rents in the USC University Park area. It’s an older neighborhood, centered on the University, with loads of old Victorian and Craftsmen homes in various states of repair. Situated between downtown and South Los Angeles, there is easy access to the 110 and 10 freeways and the Expo Metro line. Given the … Continue reading “University Park Rent Survery”
Silver Lake income property numbers from Q4 2012
Small apartment building pricing in Silver Lake continues to be very strong, driven by continued gentrification-driven demand, low supply and historically low interest rates. We ran the numbers on deals for 2-4 unit buildings in Silver Lake (as defined by the LA Times) that closed between September 1 and December 31, 2012, are here’s what … Continue reading “Silver Lake income property numbers from Q4 2012”
Checking in on the East Hollywood income property market
I’m on the record repeatedly extolling the virtues of owning in East Hollywood. I generally think owners there underestimate the achievable rents and that buyers can therefore occasionally find deals that makes sense, even at today’s inflated prices. Today, I figured I’d check in on the income properties on the market in East Hollywood to … Continue reading “Checking in on the East Hollywood income property market”
West Hollywood Rent Survey – November 2012
This week, we’re looking at rents in West Hollywood. Keep in mind that West Hollywood is its own city, separate from Los Angeles and with its own rent-control law. Also, West Hollywood has historically had a fairly progressive view on development, meaning that the city is dense and there are lots of apartments. All of … Continue reading “West Hollywood Rent Survey – November 2012”
Venice Rent Survey – September 2012
Time for another look at rents in a gentrifying (gentrified?) neighborhood in Los Angeles. This time, we’re heading over to the Westside to take a closer look at Venice. Here are the highlights: Median rent for studios was $1,275 (lower than I would have expected); Median rent for one bed / one baths was $2,575; Median … Continue reading “Venice Rent Survey – September 2012”
Ground up construction rules of thumb
As you know, I’m not a developer; I do rehab deals. That said, I’m a curious guy and I used to spend a lot of time looking for construction deals. Pretty often, when I was looking at potential projects, I used to find myself wishing for some simple way to estimate the cost of building … Continue reading “Ground up construction rules of thumb”
Los Feliz Rent Survey – July 2012
It’s time to continue our regular survey of Los Angeles rents. We do these surveys to give renters, landlords, developers, lenders, and appraisers access to up-to-date information on the rental market. This time, we’re focusing on Los Feliz. Things to note: This was a whopper of a survey, because Los Feliz is a huge neighborhood, … Continue reading “Los Feliz Rent Survey – July 2012”