Fewer New Homes: This measure discourages housing development, worsening the current shortage and raising costs for everyone.
Lower Living Standards: Without incentives for upkeep, properties deteriorate, potentially leading to increased crime.
Lost Revenue: Proposition 33 could cost over a billion dollars in tax revenue, leading to budget cuts or more taxes.
In 2020, Governor Newsom and 60% of Californians voted NO on a similar measure. Let’s stand strong again!
Recently, an investor acquired a 4-unit building in Venice. The property had been underperforming due to very low rents.
Tenant buyouts: To pave the way for change, the investor bought out 3 of the 4 existing tenants. This strategic move allowed for greater flexibility in repositioning the property.
Unit reconfiguration: The investor took bold steps. One unit was removed entirely, and another was split to create an Accessory Dwelling Unit (ADU). Suddenly, the building had 5 units.
Garage demolition and new beginnings: Not content with stopping there, the investor demolished the garage. In its place, 2 detached townhouse-style ADUs were built. These additions not only expanded the property but also increased its overall value.
The numbers tell the tale. The property now operates at a 6% Capitalization Rate (CAP) and generates positive cash flow.
None of this would have been possible without the guidance of Thomas Khammar and Brent Parsons. Their expertise played a pivotal role in turning this complex repositioning project into a success story.
If you’re considering a similar real estate venture or simply want to explore investment options, don’t hesitate to reach out to our team. We’re here to assist you every step of the way.
ABOUT US
POWER PROPERTY MANAGEMENT is California’s premier, full service management company dedicated to providing the highest quality service available in property management, leasing and value add capital improvement projects. We personalize our approach based on our clients’ needs and deliver results to maximize your cash flow. As experienced leasing professionals our team is committed to protecting your assets while acquiring optimal rents. We work tirelessly to maximize awareness of your asset through aggressive marketing efforts in order to minimize the vacancy period and attract the right residents.
