2034 5th St Unit C. (Santa Monica)

Redfin link

Pros
  • Up to date amenities. Counter tops, fixtures, tile, etc. seem modern and good quality.
  • A large balcony.
Cons
  • Small toilets.
  • Building feels cheap. There's a hollowness to the floors.
  • There are 4 units on a lot meant for a single family home.
  • Bizarre ownership requirements.
Thoughts

This is a strange property. It sold 5 years ago for 1.7M, and has since been turned it into a 4 unit property. Except it isn't a real 4 unit property. Probably because of zoning restrictions, the owners are attempting to sell portions of a Tenancy In Common ownership. I don't know all the intricacies involved with a TIC, but essentially it is a single legal entity that owns the property and the ownership is subdivided among the Tenants. This is all fine and dandy, except if one tenant defaults on a loan, the other tenants are responsible for it.

In my opinion a TIC is a nonstarter. It seems like a legal vehicle that makes sense if you're bequeathing property to your kids, but not an agreement to enter into with complete strangers. I'm sure the listing agents will have some explanation about why a TIC isn't a bad thing, but I'd be skeptical.

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