Real Estate News – Downtown Los Angeles Booming in a Normal Real Estate Market

Real Estate Economics of Downtown L.A. Lofts and Condos Today

The L.A. Loft Blog, the authority on Downtown Real Estate, reported in 2016 that we entered into a normal real estate market. What is a “normal” real estate market?  Before we can answer that, we must answer the question about why we never hear the word “normal” when we hear news about economics . #dtla #realestate #news

Let’s first start by informing about how we at the L.A. Loft Blog have been helping buyers, sellers, renters and landlords by telling everyone (who was fortunate enough to read in 2011) to start buying real estate, to catch the wave before it passes, and that it would be almost like getting a free house. In 2013, the L.A. Loft Blog reported that prices were up and that the sky is the limit on prices.

The fact is, economics is the dismal science, and most ignore it. Buyers buy when they feel like it, or when they have the money, and sellers sell when they need to, or when they want to move or to cash out. The smart, astute and savvy do, however, at least pay attention to economics and integrate the facts as much as possible into their profitable plans.

In 2012, when the recession was at its lowest, the publishers of the L.A. Loft Blog eagerly put our own money where our mouths were, and went all in on purchase of real estate. We bought an Alta loft for $202,000 that year, and a few years later, the value was more than double.  While it’s not exactly  free, that is the closest thing to getting a free home for a home buyer.

While many took advantage of the low prices at that time, others professed to know that there was a coming wave of foreclosures that they were waiting for.  A heaping pile of garbage, the national mainstream news was dead wrong. The publishers of the L.A. Loft Blog informed our small readership that the “coming wave of forclosures” was not coming.  Indeed, it never came.  The only real wave was the wave of high prices that the L.A. Loft Blog forecast earlier.  We, with many of our clients are riding that wave all the way into the frickin’sunset!

National real estate news does not exactly match up to Downtown real estate because Downtown Los Angeles is a fast-growing urban center in an unprecedented renaissance and renewal. The recession was slow to hit Downtown in 2009, and then Downtown LA was among the first to escape hard times as DTLA again exploded, quickly with growth in 2012 when the rest of the country was still waiting for the “wave of foreclosures” that never appeared. Not only is the mainstream news media unable to forecast what it coming up in the economy, the mainstream news is utterly unable to report anything as normal simply because “normal” is not news.

Today, we’re in a normal real estate market as prices are approaching a moderate plateau. Normal means that the economy is growing at a relatively common pace, and PRICES ARE LIKELY TO CONTINUE TO RISE SIGNIFICANTLY BEFORE PRICES DROP SIGNIFICANTLY. The coming plateau will likely provide extended stability, the hottest market is yet to come, and then the following fall in prices will be both late and marginal. Downtown rent prices have been largely stable for the past 12 months, indicating a stabilizing trend for home prices. A great deal of cash today is on the sidelines. After unprecedented quantitative easing by federal governments (electronic printing of money), cash is relatively easy to come by as viewed from historic standards. While it’s not a time for investors to immediately double their wealth in real estate, today’s Downtown Los Angeles real estate market does present a great opportunity for renters to stop renting and lock in a historic low interest rate and affordable monthly payment.

Those who need crazy, abnormal gains quickly will need to invest in Bitcoin. Or let us know what you think will be a faster-growing investment at tips@laloftblog.com

Get a free list of top Downtown LA investments. Fill out the online form:

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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.

Airbnb Los Angeles

Airbnb experiences bring the most profit for investors and landlords.  #airbnb #losangeles

The LA Loft Blog provides an up-to-date breakdown of the best ways to make a profit with short term rentals on Airbnb. This post includes 3 real case studies of Airbnb rentals in the Greater Los Angeles Area including Downtown, Beach Cities and Big Bear, starting with the most profitable and ending with the biggest loser. Airbnb is generally used to find guests to stay in rooms or entire homes for several days to several weeks, or sometimes just one day, usually less than 6 months. The most profitable homes on Airbnb tend to be the short-term rentals that offer the most “experience,” that is a special feeling of fun, excitement or enjoyment from unique attributes such as decor, architecture, furnishings, location and amenities of the short-term rental. Those near tourist areas, theme parks, beaches, snow skiing, lakes, rivers and entertainment venues have the most profit potential.

Popular attractive furnishings, dishes, appliances, games with professional cleaning and maintenance are key to happy guests and maximum price. Investors should check to make sure local hotel prices are rising and not dropping.

Before listing a home on Airbnb, landlords and investors must be aware of the local ordinances and homeowners association rules that govern what homeowners may and may not do with short-term rentals. Most cities and municipalities have laws regarding hotels and hotel taxes. At a minimum, investors and other homeowners with homes listed in Airbnb must collect and pay hotel taxes to the city in which the short-term rental is located. Some localities may not allow short-term rentals under 6 months at all. Most condominiums are not suitable for short-term rentals because the CC&R rules normally specify that condo unit owners may not do short-term rentals at all, and all lease must be for at least 6-months. Additionally, each resident must in most cases coordinate their move-in with the HOA homeowners association manager and pay a move-in fee.

To make a tidy profit, the investor must have or hire someone with skills and experience in local real estate, interior design, hotel management and marketing. The property must be obtained for a cost that will be substantially lower expense than the income that the rental will attract. It must be near public transportation if in the city or provide convenient parking if not.

The “bnb” in Airbnb stands for bed and breakfast, which means that the owner is there helping, conversing and sometimes even cooking for the guests. In many cities, the owner must be staying in the residence with the guests or else the short-term rental is illegal and may face big fines. Owners should have sufficient insurance and take steps to prevent disasters such as wild parties.

Some renters try to sub-rent their leased loft to Airbnb, but this is usually not allowed under most lease agreements.  They usually specify that the unit can not be sub-leased or sub-rented at all without the property owner’s permission.  Because of these rules, it is hard to find Downtown lofts on Airbnb.  When one is found, there is a good chance that the person who listed it is breaking a HOA rule or violating a lease agreement.  That being said, there are some buildings, HOAs and owners who are more or less likely to enforce these rules.  The LA Loft blog often receives word on which buildings are enforcing and which buildings are Airbnb havens.

Here are the three recent real-life Airbnb scenarios, and what made them make or lose money, in order of profitability:

MOST PROFIT:
Teddy Bear’s Cabin in Big Bear – This super profitable modern luxury log home garners $500 to $1,000 per night.  It is a nice, big cabin with modern kitchen and bath, romantic fireplace in the master bedroom, lots of games and videos, and walkable to the lake.  Up to $15,000 per month makes this a super-profitable Airbnb rental.

PROFITABLE:
My Little Paris in Los Angeles – This brick loft is booked up for the next 6 weeks at $135 per night.  That is over $4,000 per month for a loft that normally rents long term for around $2,400 per month. That brings a tidy profit for the owner who is lucky enough to get away with it.

BIGGEST LOSER:
Rancho Palos Verdes house – A traditional large home just a few blocks from the beach was purchased for the purpose of offering short-term rentals on Airbnb, but the RPV community cracked down big time and outlawed short term rentals in residential homes. The investor is struggling to pay their $10,000 per month mortgage, and bleeding cash.

Get a list of the best Los Angeles investment properties for doing short-term rentals on Airbnb. 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. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.