Here's what you can do with a house in LA (and why no one seems to sell unless they have to).

 

Let your kids live in it. And if they inherit it, they get your rock-bottom property taxes too - if they occupy it within a year as their primary home.

 

Rent as a “medium-term” (3-12 months) furnished rental. A designer-furnished $4mil home in Studio City can rent for $25,000/mo. As investors would say…“it pencils”.

 

Rent the backyard for weddings etc. Did you know you can rent your home up to 14 days per year tax-free? Called the “Augusta Rule” (consult your CPA). And the place doesn't have to be epic. A client of mine has a house in Van Nuys next to a parking lot, but with a a nice big tree and a pond. You can't believe the demand for $2500-$5000 wedding venues.

 

Turn it into a duplex or a 4plex. SB9 had a rocky start but this is the future of houses in LA - being turned into 2-4 unit apartment buildings.

 

Rent it to photographers on Peerspace. One of our clients is making so much money doing this they bought a separate home to live in so they can accept 5-10 bookings a week. Note: they are designers and if you're not, hire one. 

 

Put your business in it. Commercial buildings are rare and tough to finance, so why not just buy a house and put your employees in there? When high-end brands want to launch in LA, they often rent houses in trendy areas. And rumor has it there are a half dozen Netflix “writer's rooms” meeting daily in Silver Lake houses. None of this legal and I don't do it, and don't get caught like James Franco did.

🗞 Goldman Sachs is calling the bottom of the national real estate market. 

🎥  Joyce Rey is a legendary Beverly Hills-area Realtor who has twice sold homes that were the most expensive in the country.  Her biggest regret: Not Buying More Real Estate.

💰 Another billion-dollar Realtor who has more money than God…"Rappaport does have a regret: “I wish I had bought more.” (use www.12ft.io to get past the paywall)

🏛️ Los Angeles rent control and eviction laws keep shifting. Here's an up-to-date guide.