Be the Landlord
This article gives a good picture of why income property, for better or worse, is the right investment in Los Angeles. It paints L.A. as bad for renters:
– 63% of L.A. residents are renters
– rent has increased 30% over the past 20 years, adjusted for inflation
– over the past 20 years, renter incomes have decreased 6%
– 37 affordable units for every 100 would-be renters
Rent control is one way to battle rent increases. But when a city is as desirable as L.A. or New York, there’s not much you can do about people wanting to live here.
Read MoreKagan’s Blog
If you really want to know about the income property business, take a look at Kagan’s Blog. Moses Kagan taught me almost everything I know about real estate, and the Essential Reading section of his blog is worth its weight in gold, if digital words could be weighed.
While Moses focuses his time on buying and renovating apartment buildings for his fund, I work with him at Adaptive Realty to help people like you buy your own income property. What’s the difference between the properties he buys and the ones you will likely own? He buys rundown pieces of junk, spends tons of money renovating them and sells the updated property (like the beauty in the picture here) for a large margin. That takes a lot of risk, time, gumption, and cash. What most people like to do (and what I encourage) is to buy a property with decent leverage, one that needs little rehab, and then collect rents and watch it appreciate into your retirement.
We know how to do all kinds of deals depending on the kind of buyer you are, but 2-4 unit residential income properties are our sweet spot. Follow my blog to read about the kinds of deals that we do at Adaptive Realty, and what you can do with us.
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