Eastern Columbia Live/Work Lofts for Rent Right Now!

The first one: Spacious open plan loft with concrete floors and 14-foot ceilings! Two generous built-in closets. Has a balcony too. Faces west for lovely sunsets. 1 parking space included. $3300/mo. Call or text 310-869-2655 for more info.

The second one: Open plan with gleaming concrete floors and southfacing views, and an unusual closed off bonus room that's perfect for a small guest room or office or art studio! Also includes a storage unit in the building. 1 parking space included. $3500/mo. Call or text 310-869-2655 for more info.

The Holiday Buy List Should Include Property

The winter is the worst time to sell, but the best time to buy. This is when deals can be made, price drops seen and desperation is running high for sellers. 

Which brings me to talk about buying during the holidays. Two of my investment properties were bought during the holiday months. I lowballed, got the offer accepted with no counters. This is because properties aren't selling as quickly and sellers just want to get out. So, buyers out there, remember that if you're thinking of waiting to buy in May or June of next year, then you will likely pay a bit more, or end up in a bidding war with other buyers. Of course interest rates could fluctuate, and they will, but the forecast is that they will be roughly the same as this year, or a tad higher.

Pocket Listing Alert - Eastern Columbia Lofts

Beautiful corner unit, 2 beds, 2 baths, plus a balcony! 1740sf. Contact me for details.

Luxury Condos in LA are One-Upping Their Amenities

Typical luxury condo amenities in Los Angeles 20 years ago: pool, hot tub, gym, clubhouse, BBQ, business center, front desk concierge, and maybe a tennis court.

Now, lifestyles have changed. "You don’t need a front-desk person to book the table you want at a restaurant,” per Josh Greer of Hilton & Hyland. “You already have an assistant who does that.” You also don't need saunas as people tend to have other gym memberships.

The luxury condo checklist now:
- Pool (The larger the better, saltwater preferred, and temp controlled of course)
- 24/7 Security (Basically no one is allowed unless on the guest list)
- Fitness Center (Must have towel service, yoga rooms, and up to the minute gym equipment)
- Valet Service or Private garages
- Charging Stations
- LEED certification or sustainable fixtures
- Gardens and decks, preferably with views
- Screening Rooms
- Lounge and event space
- Pet amenities and grooming stations

Gas Prices Up, Home Mortgage Rates Down

The 30-Year Fixed is at 3.5%. Crazy. This is like back in 2004 or 2011. Prices have plateaued a bit, and interest rates are low, and that is the best time to buy.

New Rent Control Laws Affecting All of California

From the American Apartment Owners Association:

Creating rent control for a state as vast as California is no easy task. While California voters said no to rent control last year, lawmakers didn’t give up, and the new legislation includes compromises on a few key issues. The rule, California Assembly Bill 1482, excludes cities that already have rent ordinances. That happens to include the two largest cities, San Francisco and Los Angeles.

In California, if a tenant has lived in a unit for 12 months, it becomes far more difficult to evict them and they can only be evicted if they:

• don’t pay rent,
• breach the lease in some other way,
• are involved in criminal activity on the property, or
• cause some other public nuisance.

Landlords can also evict if their immediate family will occupy the unit or if it’s being converted into a condominium. The landlord must pay the tenant’s relocation cost.

The legislation also doesn’t allow any California cities to create an annual rent control cap lower than 5% plus inflation. Single-family homes and condos are exempt from rent control, protecting smaller real estate investors. The California Apartment Association didn’t oppose the bill, but the California Association of Realtors issued a statement saying the new rules don’t do enough to increase the supply of affordable rental housing.

What landlords need to keep in mind

Even if rent control isn’t an issue in your community yet, it may be coming. For landlords, it’s always important to stay aware of what’s happening in your community. Pay attention to the local news where your rental is located and attend town meetings if possible. As a real estate investor, you can make your voice heard.

City and state legislation tends to focus on two core issues: the cost of rent and the process of eviction. As you determine your budget and the rent you need to charge, know that city or state regulations may limit your rents now or in the future by updating legislation.

As we’ve seen with the examples above, most laws and ordinances aren’t universal — there are generally different rules depending on the size and age of the building. Know where your property falls with regard to your local legislation.

Eviction is never an easy process, but most laws favor tenants. As a landlord, you’ll need to understand the process in your area before you need to go through it. Documentation of reasons for eviction is critical. Keep as many records as possible documenting the situation. While it’s impossible to predict the future, one way to lessen your chances of having to evict a tenant is through careful screening.

Individual real estate investors can be an important part of the affordable housing crisis and by staying aware they can protect both themselves and their tenants.

Los Angeles Ranks 36 in Best Cities to Rent with Pets

Anyone who has a pet knows that they're really more like furry family members. This is why I'm so disappointed that, according to RentCafe, LA ranked only 36 out of top 50 cities for the most pet friendly rentals. We were just ahead of San Francisco, but way behind even Atlanta! Come on LA, with our amazing weather, and lots of pet friendly parks and shops, you'd think we'd have a little more love.

This is another reason why I love DTLA, because there are so many pet friendly buildings. In fact, I think all but Bunker Hill Towers, Promenade Towers, and Promenade West are the only ones that don't allow pets (Service animals of course are allowed). The rest of DTLA is pretty pet friendly, including many businesses.

Just some of the pet-friendly places with patios and/or lax dog policies
1. Kazunori
2. Preux & Proper
3. Corporation Food Hall
4. Spring Street Bar
5. Le Petit Paris
6. Daily Dose
7. Zinc
8. Zinque
9. Ace Hotel
10. Freehand Hotel
11. Prank
12. Baco Mercat
13. Coles
14. No Ghost Bears
15. Stumptown
16. IL Cafe
17. Umami on Broadway
18. Verve
19. Go Get Em Tiger
20. Tartine
21. Alameda Supper Club
22. Paramount Coffee Project
23. West Elm
24. Manuela
25. Wurstkuche

Interest Rates Still Amazing for Buyers

While prices are high, they are plateauing in some areas and combine that with low interest rates, it's still better to buy than rent. At least you can build equity over time. At least you can rent out the place if you need to, and rents in LA are high. At least you can write off some of the property expenses. At least you can have stability from rising rents and unpredictable Landlords.

Areas that are exciting because of changes, new development, public transportation access, and overall a range in prices:

1. DTLA of course! Still one of the most desirable areas because of the FWY access, public transportation is growing in the area, and many companies are relocating to DTLA:

2. West Adams is a huge Transportation Priority Zone. Tons of development happening along Adams Blvd, and spillover from Culver City and Mid City plus some beautiful Craftsman & Spanish gems are making this neighborhood a good buy.

3. Highland Park has been happening for a while. And it's still going strong because of the amazing stock of homes (many that still need polishing, which means there's still room for growth and value), a very small amount of apartment housing (most are SFRS), hillside views and interesting topography, access to Goldline, and the fact that it's sandwiched between the best of the eastside areas like Pasadena, DTLA, Eagle Rock, Frogtown.

Plateau of Prices Continues

Prices began to plateau in DTLA (and most of LA in general) this year. But this isn't too surprising--prices have been steadily going up every year since the crash, and it was due to level off at some point. That point is now.

Translation: Great time for buyers to get in while prices are softening and interest rates are still very low.

Savvy sellers are still getting top dollar though, if the home is remodeled. Nicely updated properties are still going over asking and with multiple offers. The fact is, inventory is low, but even lower for good homes.

Good updates for condos and loft spaces & resale value:
1. Modern kitchen with no moldings and fussy details
2. Do with less upper cabinets and instead opt for a kitchen island with storage to make up for it
3. Hardwood or Concrete floors all the way. No one wants carpet these days!
4. Do not paint crazy accent wall colors. Use a muted or neutra like gray or taupe for accent walls.
5. Add window shades but not curtains
6. Go easy on the Carrara Marble--the look can get played out very fast if you have too much of it
7. When in doubt, paint the entire interior white and use pops of art and color to add to walls.
8. Add plants--always trending are Fiddle Leafs, as well as Monsteras, Draconias and Money Plants
9. Dark kitchens are making a comeback--but only if done well with the right blacks and grays and dark blues. Otherwise, keep it light.
10. Plywood in lofts is getting played out. Unless it's in closet built-ins, don't use it in kitchens and bathrooms.

Best Time to List a Home, According to the NYT

Apparently, April is the best time to list a property. General rule of thumb is Spring & Summer.

The factors considered: "the number of days each property spent on the market; the rate at which properties listed at various times of year sold above or below asking price; the number of online views listings received; the total number of listings at any given time; and the average listing price in each area at various times of year."

Market is Shifting, What to Do, What to Do? + Good DTLA Buys

I'm seeing this more and more--price drops. Some were way overpriced to begin with (some Sellers are still stuck in 2018) and some are just delusional thinking that Buyers don't know what's going on.

But does this mean that Sellers should jump ship? Well, that depends. Prices are still pretty high overall. If you wanted to sell in 2018 but didn't, maybe 2019 is the time to sell. After all, inventory is still very low, and you can still fetch prices higher than any year before last.

Should Sellers hold? If the rental market in your neighborhood is still hot (meaning less than 60 days on the market), and you're able to make some cash or at least break even on your costs by renting out, why now? Let someone else pay for your mortgage and expenses while you move on to possibly buying another property.

Which brings me to the fact that we are in an interesting place in the market where prices are shifting and buyers have more leverage than they did even 6 months ago. Look for deals. Look for properties sitting on the market for more than 60-70 days. Look for negotiation opportunities. Interest rates dropped again recently so take advantage. This is what investors do when the market begins to shift. Because who knows how long this shift will last.

Some very good DTLA buys right now:

Mura
629 Traction Ave #224 - Arts District (Red Hot area)

DETAILS: 1240sf, 2 + 2 with rare townhouse style floorplan and bonus 180+sf loft space and 2 parkings spaces! $819k or $660/sf. Building has a pool, gym, 24/7 security, BBQ, outdoor lounge. Super low HOAs of approx $550/mo.

WITHIN 3 BLOCKS OF: Little Tokyo, Hauser Wirth, Grow, Pie Hole, Wurstkuche, Woori Market, Shinola, Salt & Straw, Aliso Village, Inko Nito, Nightshade, Sci Arc, Gold Line, MOCA, Arts District Brewery, Umami, Philip Lim, Woo, Garey Building, Hammer & Spear & so much more.


Library Court
630 W. 6th St - Financial District 

DETAILS: 1180sf, 2 + 2 with open style living/kitchen and 2 parkings spaces! $685k or $580/sf. Building has an outdoor deck, gym, 24/7 security. Super low HOAs of approx $690/mo.

WITHIN 5 BLOCKS OF: Nomad, The Bloc, Pershing Square, Metro Red Line, Fig & 7th, Bottega Louie, Little Sister, Whole Foods, Ralphs, Jewelry District, Wilshire Grand, Target, Nordstrom Rack, Equinox Gym, Philz, Tom George, Fundamental, and more!

Eastern Columbia
849 S. Broadway #M04 - Historic Core

DETAILS: 1500sf, open style bed/living/kitchen flex space, 1 bathroom and 1 parking space. $950k or $633/sf. Building has a rooftop pool, deck, gym, 24/7 security. Mills Act tax savings. HOAs approx $1058/mo.

WITHIN 3 BLOCKS OF: Ace Hotel, Museum Building, Upcoming Apple Store, Mykita, ACNE, Whole Foods, APC, Little Monster, West Elm, Proper Hotel, IL Cafe, Cliftons, Freehand Hotel, Shake Shack, La Tropezienne, Terroni, Wood Spoon, Lala's, Orpheum, United Artists Theater, DTLA Ramen, Shibumi, Soul Cycle & more.

Elleven
1111 S. Grand #404 - South Park

DETAILS: 1030sf, open style bed/living/kitchen flex space, 1 bathroom and 1 parking space. $583k or $566/sf. Building has a pool, deck, BBQ, gym, 24/7 security. HOAs approx $734/mo.

WITHIN 5 BLOCKS OF: Whole Foods, Staples Center, LA Live, Hotel Figueroa, The Bloc, Restaurant Row, Fig & 7th, Fashion District, Broken Spanish, Expo Line, Ralphs, Starbucks, Prank, Barcito, Cow Cafe, CVS, and more.

Two Chic Historic Rentals on the Market

Eastern Columbia Lofts

1110sf - $3600/mo

Live in one of DTLA's most iconic Art Deco buildings, the Eastern Columbia. This chic southfacing 1110sf live/work loft is one of the few residences in the building with soaring 14-foot ceilings and oversized vintage windows that bring in tons of natural light. The open plan kitchen flows into the bright living area, and a nicely separated bedroom nook has added built-in storage. Concrete floors and exposed ceilings create a true loft living experience. Upgrades include a brand new refrigerator and dishwasher, and additional closets. Designer bath features a huge soaking tub. 1 covered parking space is included! Kelly Wearstler-designed building amenities include a rooftop pool, hot tub, sundeck, plus 24/7 front desk security, gym, drycleaning service, grand lobby lounge and dog run. Located in the Historic Core, you're within blocks from hotspots such as the Ace Hotel, Nomad, Fashion District, Whole Foods, Metro, as Acne, Theory, Mykita, West Elm, upcoming Apple Flagship store & more!

Rowan Lofts

600sf - $2050/mo

Chic character studio at the gorgeous NY-style Rowan Lofts in the heart of the Historic Core. Enjoy the most amazing easterly views from this 9th floor downtown pad that features exposed brick walls, oversized windows, and light hardwood floors. The 600sf unit features an airy open plan layout with tall ceilings that give it a bright and airy feel, and comes with Bosch stainless kitchen appliances, Scavolini kitchen cabinets, and spacious bathroom. There is ample closet space in the bedroom area and a Bosch washer/dryer in the unit. The historic building features amazing details such as restored Carrara marble hallways and amenities such as 24 hour front desk security, outdoor BBQ entertaining area, plunge pools, and an indoor lounge and event space. Within blocks to Whole Foods, Sunday Farmers Market, Grand Central Market, Metro, Pershing Square, Corporation Food Hall, Kazunori, Spring Arcade, Baco Mercat, Continental, Perch, Regent Theater, Blue Bottle and more!

Good News for Investors

Those who own multiple homes and investment properties have some good news coming. With housing prices high and more or less remaining high (even with micro ups and downs), more people will remain renters. Many who have thought of buying will continue to rent longer.  And more renters means more demand for rental housing. Landlords can expect to benefit from this.

A client of mine was planning on selling to buy a larger home. I ran some numbers and it turns out she would have pretty good cash flow on her current home since rents have gone up a lot in her neighborhood. And her property isn't under rent control laws. Her lender has increased her borrowing amount based on this potential income. She is now going to keep this property, rent it out, and buy her larger dream home. This is when real estate gets fun.

How Not to Give in to a Softening Housing Market

Been a while between posts because it's been busy. The buying and selling activity in most parts of LA has hardly softened. Yes, there are some price drops for properties that trying to gouge. For instance, if you're trying to price a house in Highland Park for $1000/sf, that's going to sit for a while. But price it around $750/sf, then you're right where things should be.

Tips for the new year:

1. If you want to buy a house that is hugely overpriced compared to comps, then go ahead and try a lowball offer. The outright rejection activity isn't happening as much, and you're likely to at least get countered.

2. If you want to sell for over the comps, go ahead, but prepare to do a few things before listing. Such as remodeling a few things. I just sold a house in West Adams for the highest price/sf because I had told the Seller to paint the house in trendy colors. It worked. It looked like a new house, which it wasn't, but it did the trick.

3. If you're budget isn't amazing, then considering a cosmetic fixer. Borrow less, and have more to spend on cosmetic fixes and increase the value.

4. If selling fast is your goal, then price it slightly under comps, and either paint the exterior or interior of the place or change out the bathroom sinks. These are generally inexpensive things that often get you triple your money back in sales price.