Aisling Swindell was paying so much for rent last year—$2,100 per month to live in a studio in Downtown LA—she figured she might as well buy a place.
“The house I ended up buying was $440,000, which is insane, right?” says Swindell, who works for an online fashion company.
That price tag, which is $178,000 below the median in LA County, sounds unbelievable, especially for what she bought: 870 square feet in the city, plus a little yard, lots of natural light, some stylish updates, and charming, 1930s-era details, like wainscoting and solid wood doors.
But while she’s no longer a renter, she still doesn’t, technically, own a house.
Her $440,000 bought her a share of a larger property: a triplex on an 8,344-square-foot lot in Jefferson Park. Her right to occupy the unit, and her responsibility for maintaining it, are spelled out in a contract with her neighbors, who live in the triplex and, with her, are its joint owners.
Read full article here:
https://la.curbed.com/2019/8/8/20751845/tenancy-in-common-los-angeles-rental-girl
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Are you thinking this would be a great way to sell your multi-unit building in San Diego?
I can help you with that!
Buyers can get mortgages up to $850,000 with a 10% down payment.
Contact me today at (858) 997-3801 or klingerealty@gmail.com.
This is big news for those non-FHA-approved condos:
The Federal Housing Administration has finally issued a long-awaited update to its condominium rules, announcing Wednesday that it is bringing back spot approvals and taking other steps to loosen requirements that make these properties eligible for FHA financing.
Under the revised guidelines – which take effect Oct. 15, 2019 – an individual condo unit in a building of 10 units or more may be eligible for spot approval if no more than 10% of the units are FHA-insured. For units in buildings with fewer than 10 units, no more than two units can have FHA insurance.
The FHA is also extending the recertification deadline for approved condo projects from two to three years, and it will insure more mixed-use projects, or those with more commercial space, to be eligible, stating that approved projects can now have up to 35% of their square footage dedicated to non-residential use.
The agency also loosened restrictions on owner-occupancy rules, stating that eligible condo projects can now be just 50% owner-occupied.
It also said it will insure up to 50% of units in any given project.
The FHA said it expects the updated guidelines to qualify an estimated 20,000 to 60,000 more condo units per year for financing.
Currently, of the more than 150,000 condo projects across the country, only 6.5% are approved for FHA financing.
https://www.housingwire.com/articles/49851-fha-brings-back-condo-spot-approvals
Interesting alternative to condominium-izing the property. The TIC Agreement amongst the TIC owners is, in essence, what CC&Rs are to a condo are critical for the buyer to carefully review. The buyer also has special financing challenges. Nonetheless, it does seem to be an alternative to open up value for multi-unit owners without the expense of the condo permit process…
Thanks Gary, and I agree – with financing being available, this is a great solution for sellers especially.
Those who want to tap some equity without having to sell the whole building could sell off one or two units!