Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California

Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California
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Showing posts with label eviction. Show all posts
Showing posts with label eviction. Show all posts

Wednesday, April 17, 2024

Rent Control Causes Rent Increases, Loss of Housing and Costs Cities Billions by Mary Cummins

rent control, rent increase,homeless, mary cummins,real estate appraiser,real estate appraisal, los angeles, california,eviction, decontrol, affordability


rent control, rent increase,homeless, mary cummins,real estate appraiser,real estate appraisal, los angeles, california,eviction, decontrol, affordability


Rent control causes rent increases, loss of housing and neighborhood degradation. It also causes the public and cities to lose billions of dollars every year for the sake of a select few who would normally have just moved to a less expensive area. I'm writing an in depth article about the problems with rent control but in the mean time here's a very good article on the subject. Rent control harms the people it's supposed to help. It also hurts everyone else.

"Rent control appears to help affordability in the short run for current tenants, but in the long-run decreases affordability, fuels gentrification, and creates negative externalities on the surrounding neighborhood. These results highlight that forcing landlords to provide insurance to tenants against rent increases can ultimately be counterproductive. If society desires to provide social insurance against rent increases, it may be less distortionary to offer this subsidy in the form of a government subsidy or tax credit. This would remove landlords’ incentives to decrease the housing supply and could provide households with the insurance they desire." 

https://www.brookings.edu/articles/what-does-economic-evidence-tell-us-about-the-effects-of-rent-control

#housing #rentcontrol #marycummins #realestateappraiser #affordablehousing #rent 


Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.


Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin

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Monday, June 24, 2019

An example of one cause of housing crisis. Apartment buildings sell and new owner raises rents. Mary Cummins

436 - 440 W Imperial Ave, El Segundo, California was listed for sale on the MLS and Loopnet for $5,000,000. It sold for $5,000,000 June 9, 2019. It was previously owned by a trust. It looks like the landlord was an elderly person who just didn't raise the rents for years. Tenants were paying $1,100 to $1,400 for a 650 sf two bed one bath unit. The new rent will be $2,100. Tenants were basically saving the difference between market and actual rent all these years.

The property was listed as a "value-add property." It states rents are 35% under market which they are. Cost per unit is $312,500 which is low. LA CPU more like $500K though this building built in 1954 and probably needs kitchen, bath upgrades. Gross rent multiplier is 19 which is very high. It's high because rent is low. It market rent were used it'd be 12 which is about right.

Below is MLS listing.

https://drive.google.com/file/d/1YKMlj4IwqtmtbYe_7WK7E8I926yBBMFo/view?usp=sharing

Below is Loopnet listing.

https://images2.loopnet.com/d2/tEOAoY9dFRSdUIKzJ92ID0Lh2lOrDnRTt8QwUr6xZTg/document.pdf

This has been happening all over Los Angeles County and the state because of the housing rebound. It's one reason for the housing crisis. The current tenants will not be able to find another two bedroom unit for $1,100. They will have to pay $2,100 which is market rent. As the units are all two bedrooms at least two people live in each of them paying half each or $550/month which is insane cheap rent. Time will tell what happens to these tenants. A wise tenant would have realized that cheap rent wouldn't last forever. They should save money and look for a higher paying job. People on fixed income, retired, won't be able to find another place at this rate.

New owner will raise rents, tenants will move, they will renovate unit and re-rent for market rent.

Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the
Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game and the USDA. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.


Google+ Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary Cummins-Cobb, Mary, Cummins, Cobb, wildlife, wild, animal, rescue, wildlife rehabilitation, wildlife rehabilitator, fish, game, los angeles, california, united states, squirrel, raccoon, fox, skunk, opossum, coyote, bobcat, manual, instructor, speaker, humane, nuisance, control, pest, trap, exclude, deter, green, non-profit, nonprofit, non, profit, ill, injured, orphaned, exhibit, exhibitor, usda, united states department of agriculture, hsus, humane society, peta, ndart, humane academy, humane officer, animal legal defense fund, animal cruelty, investigation, peace officer, animal, cruelty, abuse, neglect #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit

Tuesday, June 18, 2019

Flop houses in shitty areas sold, rehabbed and re-rented as "luxury" rooms in Los Angeles - cause of rise in homeless

1409 1411 w 25th st, los angeles, california, 90007 duplex, slum, dangerous, usc, rental, sale, mary cummins, real estate appraiser, flop house, half way house, homeless, tripalink, high crime area, murder, stabbings, death, shootings, the zoe, tripalink

A flop house owned by "Second Chance" at 1409-1411 W 25th St, Los Angeles, CA 90007 sold late 2018 for $749,000. Months before that it sold for $485K. It was originally owned by a woman who is now elderly or dead. It's located off an alley and behind an auto store right off Vermont across from a Jack in the Box and a liquor store. It was sold as a two unit with four beds, two baths each. It was broken down into eight rooms rented separately to near homeless people. They would panhandle across the street at the Jack in the Box or in the Ralphs parking lot. People were frequently passed out in front of the building or they were smoking pot, doing drugs on the porch. It was built in 1904 and is in a Historic Preservation Overlay Zone. It was a total fixer. Below are some pics of it before. It was boarded up to keep the ex-tenants and homeless out.

1409 1411 w 25th st, los angeles, california, 90007 duplex, slum, dangerous, usc, rental, sale, mary cummins, real estate appraiser, flop house, half way house, homeless, tripalink, high crime area, murder, stabbings, death, shootings, the zoe, tripalink

1409 1411 w 25th st, los angeles, california, 90007 duplex, slum, dangerous, usc, rental, sale, mary cummins, real estate appraiser, flop house, half way house, homeless, tripalink, high crime area, murder, stabbings, death, shootings, the zoe, tripalink

1409 1411 w 25th st, los angeles, california, 90007 duplex, slum, dangerous, usc, rental, sale, mary cummins, real estate appraiser, flop house, half way house, homeless, tripalink, high crime area, murder, stabbings, death, shootings, the zoe, tripalink

They renovated the place and it's already listed for rent. Here's the ad listing. Mind you it's in a very, very dangerous area where people have been murdered. Someone was murdered at the Jack in the Box across the street. Another person murdered a block up. Within last six months someone murdered two blocks away. A USC couple murdered two blocks to the west. Cars are broken into every night. People steal mail. It's within 500 feet of the 10 freeway which is dangerous for your health. It's also located next to a very, very busy intersection. The air pollution, sound, constant police sirens, police helicopters, people fighting, yelling... The address of the owner is a Marcus & Millichap office. The people who were evicted from there now live on the parkway and still hang out there as they are now homeless. The spelling errors below are not mine. The site seems to be run by Chinese people as it's also in Chinese.

"Enjoy private relaxation and high-quility living experience in this luxury house close to USC and DTLA. This duplex is located in UPC Patrol Areas (DPS patrols) which provides safe and private space for every resident. Situated in a convenient location, surrounding by multiple restaurants, 3 minutes’ walk to Ralphs and 4 minutes to USC by riding. This duplex is equipped with all the amenities needed to feel right at home. Brand new mattress, beddings, and solid wood furniture will be provided to giving you a place for the most comfortable rest and study.With a cozy living room on second floor including sofa, coffee table and carpet."

https://www.tripalink.com/#/cityDetail/36

It's already for re-sale for $1,200,000. It's allegedly master leased to a student housing group. It's actually illegal to rent out the rooms separately as this is not zoned for a boarding house. I wonder if leasing  to a corporation who subleases to individuals gets it out of rent control? The master lease includes 3% increase in rent per year which is Los Angeles City rent control. Do the sublessees have tenant rights since they aren't the main tenant? Maybe this is how they are getting the units out of LA City rent control. Per rent control even if you rent a room in a boarding house for 30 days plus you are covered by rent control. By July 2019 the landlord can increase your rent by 4%.

https://www.loopnet.com/Listing/1409-W-25th-St-Los-Angeles-CA/15814642/

They said they added heat and cooling, new copper plumbing, electrical. They say there are two units with four beds and four baths each. I think only two baths are legal. Everything else was done without permits. They state it was built in 1907. It was built 1904 and moved in 1907.

I pity anyone who rents a room there for $1,400/month. There are eight rooms. You have to rent for 12 months so it's not student housing. The site advertises itself as communal living. It's now called "The Zoe." I bet they paint over graffiti every morning and roll homeless people off the grass. Whoever cleaned out the building just dumped everything on the sidewalk and parkway across the street in front of Jack in the Box. The homeless people didn't do that. The contractor did. This is where all the trash and dumping is coming from. When you evict a poor person they can't afford to rent another place, move, pay for storage so they have to leave everything. Landlord, contractor dumps it on the street and blames the tenants. The tenants wouldn't dump their stuff on the street. They'd just leave it. I've appraised properties like this with evicted poor tenants. They leave almost everything because they can't afford to move it and have no place to move it to.

1409 1411 w 25th st, los angeles, california, 90007 duplex, slum, dangerous, usc, rental, sale, mary cummins, real estate appraiser, flop house, half way house, homeless, tripalink, high crime area, murder, stabbings, death, shootings, the zoe, tripalink
And this is why there was a huge increase in homeless. Investors are buying slum buildings cheap, renovating and re-renting for market rent. This is the real estate cycle of revitalization though some call it gentrification. It's good for the community and city bringing jobs, money, taxes, business but it displaces a few of the poorest people in the city.

I'll post a few more of these that I've seen. Chinese investors are buying up a lot of slum homes, apartments to turn into individual room rentals. When you ask them what are their plans for the building they lie and tell you they are going to move into it ;-)


Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the
Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game and the USDA. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.


Google+ Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary Cummins-Cobb, Mary, Cummins, Cobb, wildlife, wild, animal, rescue, wildlife rehabilitation, wildlife rehabilitator, fish, game, los angeles, california, united states, squirrel, raccoon, fox, skunk, opossum, coyote, bobcat, manual, instructor, speaker, humane, nuisance, control, pest, trap, exclude, deter, green, non-profit, nonprofit, non, profit, ill, injured, orphaned, exhibit, exhibitor, usda, united states department of agriculture, hsus, humane society, peta, ndart, humane academy, humane officer, animal legal defense fund, animal cruelty, investigation, peace officer, animal, cruelty, abuse, neglect #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit