To Afford a House in Los Angeles, They Had to Become Landlords
The New York Times • • technology
Key Points:
- Lauren Plaxco and Bryan Keith, former bartenders with contrasting styles, transitioned from hospitality to homeownership, aiming to offset housing costs through rental income by purchasing multi-unit properties or homes with accessory dwelling units (ADUs).
- Their search focused on quieter neighborhoods in the San Fernando Valley and Pasadena to accommodate their son’s schooling at Waldorf schools, seeking turnkey duplexes, triplexes, or single-family homes with potential for ADUs.
- Leveraging Plaxco’s mortgage lending expertise, they utilized renovation loan programs like FHA 203k and Fannie Mae HomeStyle Renovation, which allow renovation costs to be included in the mortgage based on post-renovation appraised value.
- Working with Sotheby’s International Realty agents, they addressed seller concerns about renovation loans by providing clear communication and educational materials to ensure smooth transactions.
- Their budget for purchasing ranged from $750,000 to $1.3 million, influenced by the number of rental units and existing tenants on the property.
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