Selling an LA Apartment Building? Don’t Rent That Vacant Unit Yet

Should you rent a vacant apartment before selling your Los Angeles apartment building? Not necessarily. A vacant unit may be producing zero income today, but to the right buyer it can represent an opportunity to renovate, reposition the property, and achieve higher market rents. In this video, I explain why apartment owners should think carefully before automatically rehabbing and renting a vacant unit—especially if they're considering selling. I also share a real case study from a 14-unit Studio City apartment building I recently sold for $4.4 million. The 91-year-old seller had five vacant units when I took the listing. Some were rent-ready, some needed cosmetic work, and one needed a complete renovation. I advised the seller not to rent them. The eventual buyer actually valued those vacancies because he wanted to renovate the apartments himself, upgrade them to a higher level, and reposition the building. But there was another side to the story: financing. The property had an assumable Chase loan, but Chase would not allow more than three vacant units. The buyer ultimately obtained a new loan from another lender that was comfortable with the vacancies and used the appraiser's projected rents when underwriting the property's income and NOI. In this video, I also discuss: • Why vacancies can be especially valuable in duplexes, triplexes, fourplexes, and smaller apartment buildings • Why today's buyers may need to reposition older properties with below-market rents • How higher interest rates, reassessed property taxes, and operating expenses affect a new buyer's numbers • Why some buyers use cash, bridge loans, or hard-money financing to acquire and stabilize properties • Why vacancies can be particularly important when a property has development potential • How tenant relocation and buyout costs can affect what a developer is willing to pay • Why you shouldn't automatically spend money rehabbing a vacant unit before selling The bottom line: If you're considering selling an apartment building and you have a legitimate vacancy, find out what that vacancy may be worth before you rent it, rehab it, or otherwise change the situation. Every building is different. The right strategy depends on the rents, condition, tenant situation, financing, buyer profile, and potential future use of the property. If you'd like me to take a look at your Los Angeles apartment building and discuss how I would position it for sale, feel free to contact me confidentially. ================================================== 📚 FREE RESOURCES FOR LOS ANGELES APARTMENT OWNERS 🏢 Apartment Owners Resource Center Everything you need to know about owning, managing, and selling apartment buildings in Los Angeles. https://www.derrickruiz.com/apartment... 📋 SCEP Inspection Survival Guide Learn how SCEP inspections work, what to expect, and how to prepare before the inspector arrives. https://www.derrickruiz.com/apartment... ⚠️ Los Angeles REAP Program Guide Understand how REAP works, how buildings end up in the program, and your options if your property is affected. https://www.derrickruiz.com/los-angel... 🏢 Thinking About Selling Your Apartment Building? Learn how I help owners maximize value—even if the property has vacancies, deferred maintenance, tenant issues, SCEP, or REAP challenges. https://www.derrickruiz.com/sell-apar... 💰 Free Apartment Building Valuation Find out what your apartment building may be worth in today's market with a confidential valuation. https://www.derrickruiz.com/building-... 📚 Free Buyer & Seller Guides Download free educational guides for Los Angeles apartment owners and investors. https://www.derrickruiz.com/buyer-sel... 🏆 Recent Apartment Building Sales & Case Studies See how I've helped Los Angeles apartment owners successfully sell properties with real-world challenges. https://www.derrickruiz.com/sold 🎥 Real Apartment Owner Case Studies & Videos https://www.derrickruiz.com/videos 📰 Apartment Owner Articles & Market Insights https://www.derrickruiz.com/articles ================================================== 📞 CONTACT DERRICK RUIZ 🌐 Website https://www.derrickruiz.com 📱 Call or Text: (310) 308-3174 📧 Email: derrick@derrickruiz.com ▶ Subscribe for weekly videos:    / @derrickruiz   ================================================== LEGAL DISCLAIMER This video is provided for general educational purposes only and should not be considered legal, tax, financial, or investment advice. Every property and situation is different. Please consult with qualified professionals regarding your specific circumstances. ============================== 👍 If you found this video helpful, please Like, Subscribe, and click the notification bell so you don't miss future videos about Los Angeles apartment ownership, SCEP, REAP, rent control, apartment investing, and real estate strategies.