Just like every other segment of the real estate market in the Silver Lake area, sales of residential income properties (duplexes, triplexes, fourplexes and apartment buildings) have risen in 2013 any way you look at it.
For the year-to-date through May 7th the total number of closed sales on residential income properties in the 90026 and 90039 zip codes rose by 27% from 52 last year to 66 this year.The average sales price increased from just over $598,000 last year to $629,543 this year, a difference of 5%. The average price per square foot of properties sold increased by 17% from $214.24 last year to $249.59 this year.
What does it all mean? The statistics show that prices are rising and demand continues to be very strong. It is a great time to be a landlord in Los Angeles as the supply of rental properties in Silver Lake, Echo Park and Atwater Village is very low. It is not difficult to find great tenants right now – I get phone calls every day from people looking to rent in the neighborhood.
If you are shopping for a home and not having much luck competing in multiple-offer situations a duplex in a great alternative. Competition for multi-unit properties in Silver Lake and Echo Park is not normally as fierce as it is for single family homes, so you may have a better chance at getting an offer accepted. At today’s insanely low interest rates rental income of a little over $1,300 per month will subsidize $300,000 of mortgage principal and interest payments, so you may be able to afford to spend more on a duplex than you can qualify for in a signle-family.