Investment Property in The Oaks

Association rules, in one place only. Most of The Oaks has public streets and no owners association. The exception is Briarcliff Manor, the 1911 McCray-Thorkildsen Estate at 5750 Valley Oak Drive, which the survey notes now sits within a gated residential community. A property inside that pocket comes with CC&Rs to read first, because they shape how the home can be used and changed. A property anywhere else in The Oaks has the City's rules and nothing more from a private association.

Historic status. The survey identified an Upper Oaks Period Revival Residential Historic District with 76 properties and 67 contributors, significant from 1926 to 1948. The City found it eligible for listing, which is not a designation, so no overlay rules attach today. A few homes are individually designated. The Samuel-Novarro House at 5609 Valley Oak Drive, a 1928 Lloyd Wright design, is a City Historic-Cultural Monument. Designated status changes the conversation about exterior work, so we look up each address before you tour.

Mills Act contracts. If a home carries one, it is a revolving 10-year agreement that renews each year and passes to the new owner when the home sells. We ask for a copy early in escrow so your CPA can read it alongside the purchase.

The hillside itself. Sloping sites carry drainage, retaining wall and access questions that a flat lot never raises. Permits and plans for past hillside work belong in your inspection-period file. Where the property sits matters too. The Oaks Neighborhood Association draws the boundaries at Fern Dell Drive, Foothill Drive, Canyon Drive and Griffith Park. Mailing addresses use 90068 rather than the 90027 of Laughlin Park next door. Our post on buying a historic home in Los Feliz shows how to check a home's status with the City.

• Whether the property sits inside the Briarcliff Manor pocket. If it does, request the CC&Rs and read them during the inspection period. If it does not, there is no private association to consult.
• The City's records on the house. Historic-Cultural Monument, contributor in the eligible Upper Oaks district or no status. Each one leads to a different conversation about future work.
• Any Mills Act contract. Get a copy early. It travels with the title.
• The 1031 calendar. Since 2018 a 1031 exchange covers real property only. The replacement must be identified in writing within 45 days of transferring the property you gave up and received by the 180th day, or by your tax return due date if that comes first. A replacement in another state means California asks for Form FTB 3840 each year until the deferred gain is recognized. Our post on the 1031 exchange for Los Feliz investment property works through the rules.
• Rental rules for the specific property. Confirm with your attorney what the City and any association allow before you plan on income.
• Hillside permits. Retaining walls, decks, additions and foundation work should each have a permit you can read.
• Measure ULA as context. Measure ULA is a City of Los Angeles transfer tax on higher-priced sales, and it shapes how some homes near its thresholds are priced.
• The offer dates. An initial deposit of about 3% goes to the escrow company. Brandon typically writes a 7 to 10 day inspection period, set in each offer.

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.