Investment Property in Los Feliz Estates

The CC&Rs were recorded on May 2, 1963 by Los Feliz Estates, Inc. and cover three tracts: Lots 1 through 103 of Tract 27460, Lots 1 through 60 of Tract 29326 and Lots 1 through 33 of Tract 24455. The Los Feliz Estates Owners Association enforces them and has been an active nonprofit since August 1963. Here is what an investor reads in them, in order.

• Use. One single-family dwelling per lot, designed for one household, residential only.
• Rentals. Short-term rentals under 31 days are restricted, per the 2021 newsletter. Confirm the current rule with the association for any lease you plan.
• Size. Each house is at least 2,500 square feet, with a possible reduction of up to 300 square feet at the committee's discretion.
• Exterior work. Every exterior change needs written approval from the Architectural Committee before it starts, which sets the pace for any improvement plan.
• Views. Height limits on specific lots keep the view of the city below open. A protected view is written into the documents rather than promised by a listing.
• Common area. The association maintains and irrigates the slopes, the entry gates, the drainage and the parkway strips along Los Feliz Boulevard. The 2021 newsletter says about a third of its budget goes to landscaping and about a third to security patrol.

The lots themselves are hillside lots. Rear south-facing slopes on Lots 11 through 90 of Tract 27460 are common area the association keeps up, and at the rear of the neighborhood the slopes border the park. An investor's inspection covers the house and the slope both.

1. Talk with your CPA about the plan. If a 1031 exchange is part of it, confirm the 45-day and 180-day dates that apply to you before you tour.
2. Get pre-approved with a lender and sign your written buyer representation agreement with Rooster Homes before the first showing.
3. Read the CC&Rs and the current association rules. Match your intended use, a long-term lease or a hold, against them.
4. Confirm the tract and lot of each candidate house, so you know the rules apply.
5. Ask the association in writing about pending matters and about how the Architectural Committee reviews improvement plans.
6. Write the offer. Brandon typically writes an inspection period of 7 to 10 days, and the initial deposit of about 3% goes to the escrow company.
7. Use the inspection period for the house and the slope. Read the disclosures, the permits and the association documents inside it as well.
8. Close through escrow and title, and keep the replacement in the United States if the purchase completes an exchange.

Two exchange facts from the approved rules apply here. Since 2018 a 1031 exchange covers real property only, and the replacement must be identified in writing within 45 days and received by the 180th day after the transfer of the property you gave up. Our post on the 1031 exchange for Los Feliz investment property walks through those rules. This page explains how the process works. It is not tax or legal advice. For your own situation, talk with your CPA or attorney as well.