Southern California apartment rents are expected to continue rising through 2018 (Los Angeles: rental, HOA)

[Mr_Geek]

I'm pretty sure rents will keep rising forever.

[seain dublin]

Originally Posted by Astral_Weeks

Let's put this into context: the 8% increase is from 2015 (last year) to 2018. That is three full years.

From the article,"L.A. County rents rose nearly 5% to $1,307 last year from 2014, a pace that will slow to 3.1% this year, 2.4% in 2017 and 2.5% in 2018, according to the forecast."

That is not bad at all.

Thank you, the voice of reason.

The news love to embellish, just like the $15 minimum wage. You would think it was starting next week by the way it's being reported , instead of years away.

As far as people moving from back east out here, that isn't something new.

I did it in the late 80s, people did it in the 90s, and people did it in the 60s and 70s. And before that.

Some act like it's a new trend.

[Finper]

When I lived in a apt in Huntington Beach you could only sign a one year lease and every year they raised my rent 100.00 .. Reality is different then percentages and there's no cap on what they can do. My friend in a apt in foothill ranch is going through the exact same thing. She pays her rent on time and never causes trouble they don't care she is forced out of her apt now, who knows what the next renter will be like?? All they want is more money ..It's a horrible messed up system

[MItoBH]

Originally Posted by nightlysparrow

Rent a room in a house and scrimp until you can buy something. It's really the smartest move now.

https://www.roomster.com/location/los-angeles--ca

Thanks for the link!

[pacific2]

Originally Posted by SandyCo

This is the result of more jobs, yes, but also the brutal winters back east (with the exception of this most recent one). Most ex-New Yorkers who now live here say it's 99% the weather that enticed them to move here. I'll pray for mild winters there, so people won't see southern California as such an attractive place to live.

That includes me, an escapee from Manhattan's cold winters and muggy summers, and I'm not going back.

Well, bribe me and I might consider it.

[YoungTraveler2011]

good. by that time i'll be out of LA and have my recently purchased condo completely renovated. could definitely milk a good 3,200/mo for it now, image years from now LOL

[YoungTraveler2011]

Originally Posted by PDF

"LOL @ the people who pay crazy rent prices that I came up with for my crib." -YoungTraveler2011

fixed.

[NOIGUY]

Originally Posted by YoungTraveler2011

good. by that time i'll be out of LA and have my recently purchased condo completely renovated. could definitely milk a good 3,200/mo for it now, image years from now LOL

Yeah you can milk a good negative cash flow after paying taxes, ins, debt service, HOA, management fees, r&m, etc.

[ryanms3030]

Originally Posted by YoungTraveler2011

good. by that time i'll be out of LA and have my recently purchased condo completely renovated. could definitely milk a good 3,200/mo for it now, image years from now LOL

It generally takes 10 years to break even on a rental property before you start making money unless you bought it outright with cash

[jm1982]

In the real estate investing world that's called an alligator property.

DEFINITION of 'Alligator Property'
In real estate, when the cost of mortgage payments, property taxes, insurance and maintenance on a rental property is greater than the income it brings in. If this situation is not corrected, it will eat up all of the owner's profit, leaving him or her with negative cash flow.
Alligator Property Definition | Investopedia

Instead of milking it, you might find it milking you.
There's nothin' funny bout losin' money.

It's pretty much impossible to find any property in L.A now on the market where you can make a profit after all ACTUAL expenses.
Realtors and sellers pretty much always leave out the true costs/expenses when calculating the cap rates.
Even 4% is likely a fantasy after the actual costs.

People are buying purely on speculation of an increase in rents and an increase in property values (appreciation).

Rents are high in L.A..but not high enough to cover mortgage and all expenses and have profit left over.