Downtown LA Investment Rentals – Buying or Selling Lofts and Condos with Tenants in Place

What to Do When a Home for Sale has Renters Living There

Some of the best deals in Los Angeles real estate are lofts, condos and houses already occupied with tenants in possession. #tenantinplace #investment

Overlooked properties often represent the best opportunities
Overlooked properties often represent the best opportunities

These can sometimes offer bargain prices similar to distressed properties or fixers because properties with renters living there can bring down the final sale amount.  More than 90% of home buyers are looking to move in soon, so renters in place may look too lived-in, and may not seem appealing to the majority of home buyers — But… Money-savvy buyers should remember that cluttered, unattractive properties in valuable neighborhoods generally present the best return on investment if they can be easily remedied. The right offer can be the instant remedy.  Investors, flippers and advanced real estate buyers know that good results are possible by negotiating and doing due diligence.  This article will explain how to make tenant-in-place work wonderfully for most any kind of home buyer.

When renters are living there, the prospective buyer usually needs to ask the seller a question about when the tenants will be gone.  If the tenants are on a lease agreement, then the buyer needs to know when that lease ends.  If the renters are on a month-to-month rental agreement, and they will still be in place at close of escrow, then the buyer must find out as much about the renters as possible.  How much rent are they paying; how much is it worth to rent; what are the terms; are they good tenants; do they pay rent on time?

An estoppel agreement is often required to make sure that the tenant and new owner are on the same page.  If the tenants will still be living there after close of escrow, then the buyer should send a questionnaire to the tenants asking ages of residents (when was the last rent increase, how much was the increase, what are vehicle license plate numbers?; is there any water filled furniture or pets? are there any new residents not on the original lease contract? Are all safety features still in place and functioning?  Has the tenant requested any repairs that have not been performed?.

If the buyer wants to move in soon, then the buyer must either determine if they can hold out for 1-5 months in order to terminate the rental. Or…

The smartest action that buyers and seller may overlook is for the buyer to place an offer contingent on the tenants being gone by close of escrow.  That offer encourages the existing owner to take care of the issue early so that the buyer may the right home for the right price, and move in quickly.

Get a free list of distressed lofts.  Fill out the online form:

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A tenant-in-place may shave $10,000 to $30,000 off the final sale amount.
Unmade bed can be a boon for the buyer. A messy tenant-in-place may shave $10,000 to $30,000 off the final sale amount.

 

Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

SOLD Downtown Los Angeles Luxury Highrise Condos

Congratulations to Genine Francis for selling a 2-bedroom, 2- bathroom Bunker Hill Tower high-rise condominium unit with some of the most dramatic views of any Downtown Los Angeles residential real estate.  #sold #dtla

Genine loved her beautifully updated corner unit, but decided to move so that she could be closer to her family. Because she had many responsibilities to attend to, she preferred that the home be sold with an absolute minimum of hassle, and for a sufficient amount of money.

Some sellers are not sure about the economy.  Some Downtown condo prices have been falling since Fall of 2018. The universe has been making it pretty clear where we are headed. In past similar falling markets, sellers lost money when they chased down prices instead of getting ahead of falling prices.  The seller saw some articles about how new economic strain means that power is shifting to buyers as buyers gain an edge in a property market that may already be heading down.

Bunker Hill Tower was in the doldrums, with only 4 successfully sold out of 10 units listed in the past 6 months. Only small units had sold in a building where there had been no 2 bedroom and no 3 bedrooms sold in the last 6 months.

Thanks to the use of a database of more than 4,365 home buyers, and a special relationship with several agents who have been the most successful at attracting buyers to the building, Genine’s condo went into escrow in within a few weeks, and sold 62% faster than the competing comparable 2 bedroom in the building. #luxury #condos

Congratulations to Genine as she moves to a new chapter in her life.

Find out what the home down the street sold for

Find out how much the loft down the street sold for.  Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | PopularLuxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com  Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Name and reason for move have been changed to protect privacy. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.