ICYMI: Investment Firms & the State of Home Buying in the US. A closer look at an interesting trending from around the country related to understanding and limiting #investmentFirms purchasing power of #singleFamilyHomes. #realestateinvesting
https://www.billtrack50.com/blog/investment-firms-and-home-buying/

There's a retail rental property development industry in LA that I don't see much written about. Developers buy distressed single family homes and replace them on spec with small by-right multifamily units, which they then sell to landlords to exploit. You can spot these because they're for sale rather than for rent. They aren't built by landlords but to sell to landlords.

This isn't exactly gentrification and it's not exactly new. Working class residential areas of LA are filled with these two and three unit structures, some more than a century old. But it's not exactly business as usual either. It runs on the scraps thrown off by the large scale engines of gentrification as they pulverize whole superblocks.

These structures are replacing single family homes, some of which were already rentals but others were owner occupied. The new tenants probably won't be gentrifiers at this stage, but the rents will be higher, which increases property values, which makes better loans possible, which makes more direct gentrification pencil out better, which reinforces the gentrification cycle. The cycle is also reinforced by replacing owners with renters, who are much easier to exploit directly.

I don't have conclusions or solutions, just information. Both of these buildings are on 55th Street between Normandie and Budlong.

#LosAngeles
#Gentrification
#RealEstate
#SingleFamilyHomes
#NormandieAve
#BudlongAve
#55thStreet
#Landlords
#Tenants
#LATU
#TheRentIsTooDamnHigh

New on the blog: Investment Firms & the State of Home Buying in the US. A closer look at an interesting trending from around the country related to understanding and limiting #investmentFirms purchasing power of #singleFamilyHomes.
#RealEstate #realestateinvesting
https://www.billtrack50.com/blog/investment-firms-and-home-buying/