Home Buying in 90018>Question Details

Erink, Home Buyer in Los Angeles, CA

There is a house for sale in los angeles that says "Possession: Tenants Rights" under the Listing Information. If this is a regular sale,

Asked by Erink, Los Angeles, CA Thu May 27, 2010

why wouldn't the seller do cash or keys and have it vacant. It's also Drive by only, bidding sight unseen. If I want to occupy this property why wouldn't they just have to move out and why would i have to pay them a relocation fee? In 30 days it already dropped $14,500. Is that a sign that this could just be more headache than it's worth? It's in my price range but not sure i have thousands of extra dollars to get them out.

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The City of Los Angeles and some of the surrounding cities have extremely tenant friendly laws. Especially if the home was taken back by the bank in a foreclosure. You will have to do your homework to figure out how much of a headache this will be. Your lender will also have to be notified that you will not be able to take occupancy immediately.

In some instances, you just have to wait for the lease to run out and give the tenant proper notice that the lease will not be renewed. If the tenant is on a month to month rental, you will have to give the appropriate notice to the tenant to move, usually 60 - 90 days. If, however, the tenant is covered by rent control laws, then in addition to the proper notice, you will have to pay a relocation fee when the tenant agrees to move out. This can be well over $10,000 in some areas, so make sure to factor that in when make your offer.

If you are a first time homebuyer, or you are planning to use FHA financing, then this home is not your best choice. You might not have the right to perform inspections or even have an appraiser enter the house (which will prevent you from getting financing). If you would like more specific information regarding the home, please feel free to contact me. I would be happy to help you gather the information you need to make an informed decision. If you are already working with an agent, then they should be able to get you the additional information you need. If this home does not work out for you, I am sure there are others that might. Inventory is a little low right now, however, patience and perseverance seems to pay off for all my buyers. Let me know if I can help and Dare to Dream.

Shel-lee Davis, CDPE, SFR, QSC
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
http://shel-lee.listingbook.com
0 votes Thank Flag Link Thu May 27, 2010
Need more detail to help you out. Or any one of my colleagues can help you out here, it's just such a situation that would need more info to answer correctly.
Best of luck to you!
0 votes Thank Flag Link Sat Jan 12, 2013
Yes i have a realtor. I don't think she thinks this is the best opportunity for me. Unfortunately in my low price range investors are like vultures in Jefferson Park buying stuff up full cash. It's very discouraging. It is an REO and my realtor is trying to find out more about the tenants, how long they have lived there, how many people, how much do they pay, how long is the lease. . . . she is saying often times these banks have no idea though. it's probably not the best idea since i need most of my money for downpayment, closing and repairs. It's just unfortunate that anything around or under $200,000 has some horrible catch to it. Thanks!
0 votes Thank Flag Link Fri May 28, 2010
Are you asking these questions of your Realtor? It is clear that you need one if you don’t already have one. The property you are considering is a complicated potential purchase and certainly not something that you should attempt without professional assistance.
0 votes Thank Flag Link Thu May 27, 2010
Hello Erink,

Depending on where the property is located in Los Angeles. If it is a single family home you may not have to pay a relocation fee as most single family homes aren't in rent control. If it's a regular sale perhaps they are selling it as an REO. If there is a valid lease in tact you won't be able to remove the tenants. Sometimes, if the numbers work it's best to write an offer subject to inspection.

I know a lot about tenant issues so if you need assistance, let me know.

Best,

Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
mcarrabba@kw.com
(323) 899-2900
0 votes Thank Flag Link Thu May 27, 2010
It's in Jefferson Park area of Los Angeles. 90018.

Why wouldn't the seller give them 60-90 days to move out before closing? Also, its' hard to bid when you have to bid without seeing it and right now it's at my max asking price. I wonder if i can just lowball since a) i have no idea how much work the house needs but it says it has a lot of the original charm entact, and b)i have no idea how much it will cost to get these people out. how many? how long have they been there? are they elderly? are they disabled? Can i low ball with that many unknowns?
0 votes Thank Flag Link Thu May 27, 2010
What area is the property in? Some areas, like Santa Monica, may not allow an eviction under any circumstances. In either event, you'll have to factor in the costs of any relocation into your price, as will any buyer, and you may be able to get a decent value for this exchange.

If you have any questions, I just purchased a home for myself in an identical situation,

Richard Schulman
#1 Listing and Selling Agent
Keller Williams Westside Realty
schulmanrd@yahoo.com
http://www.RichardSchulman.com
310-482-0173 - A few hours ago
0 votes Thank Flag Link Thu May 27, 2010
Perhaps, it might be more of a headache for you, but it sounds like an interesting opportunity for me.
0 votes Thank Flag Link Thu May 27, 2010
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