Being Connected to an MLS Professional is the Better Option

How the MLS Serves the Client

The multiple listing service (MLS) has been around for decades.  Up until sometime in the 1990s, at least in Southern California, publication of listings was available through printed books, or catalogs, of listings published periodically. Naturally, as the internet became more prevalent, REALTOR associations discontinued printed books. Online access was faster and more accessible, and subsequently, not only were listings available through individual members of the MLSs, but the MLSs licensed the brokers' listings out to internet sites, creating an even faster and wider access to the buying public. Currently, in the California Regional Multiple Listing Service (CRMLS), which is one of the largest in the country, there are 39 participating Realtor Associations and Boards, 8 reciprocal partners and 6 other service areas, which add up to about 148,000 users. In addition, brokers may use an additional service which syndicates their listings to more than 60,000 brokerages and 85 publishers. The brokerages Redfin and Zillow may be familiar names which are included in this wide distribution.

 

In comparison, in the earliest days, listing information about a property was distributed solely by the broker who had the listing, so that in order to find out what was on the market, the buyer (and agent) had to travel to various broker offices to find out about its office listings. In fact, this practice has continued for a long time in other parts of the world.  Can you imagine how long it took to get the word out using this method?

Another example of slow, and limited, exposure would be sellers who put a sign out in front of their house in order to get their own buyer.  That method traditionally depended on someone looking in the classified ads finding their posting, or driving around the neighborhood and coming across their sign. For sale by owners now can upload to the internet, but are dependent on the specific sites they use.

The most important thing for a seller, once a listing is appropriately priced and prepared for market, is exposure to as many buyers as possible. If you list with me, I will take all the appropriate steps as required by the Code of Ethics and the MLS rules to place your property in the MLS on a timely basis, because exposure to the buying public as soon as possible is how you will obtain the best price for your property.

If you have questions about this process and would like more understanding about how the MLS operates and what is included in a listing, I can help you. I have been doing this business for a very long time and my goal is always to sell your property at the best price and terms.

Please visit my website for some area market reports and community resource maps.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

How Building Costs Are Projected to Be Affected

The much discussed tariff impact has been fluctuating, but below are projections as published on April 23 by our California Association of Realtors economist Oscar Wei. The estimates were developed by the Oakland architecture firm of Baran Studios to project impact on building a 400 sq.ft Accessory Dwelling Unit, the size of a standard two-car garage. ADUs are being looked at by many of the fire zone victims to create initial temporary housing on their lots, as well as by many other property owners looking to creating one for extra income, or for other occupancy purposes. 

The graphic below illustrates price increases for framing and woodwork to $39,220, electrical fixtures to $5350; doors and windows to $29,400; appliances to $10,500; plumbing to $5100; drywall and plaster to $10,400; custom cabinets to $26,500; trim to $5300.  The overall increase for an ADU that before tariffs would be $427,570, to a current new total of $434,000.  Keep in mind that for a new replacement house of 1400 sq.ft, the costs would of course be greater.

Estimated 5% Increase - Graphic

I am happy to share information from the professional panels I attend or can obtain information from--if you have a specific question, I may be able to help you.

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

The Residential Market Sales in Long Beach for March through Mid-May, 2025

Condo complex LongBeach

More properties are coming on the market now, so checking selling prices might help you decide if you're going to make a move.

Most properties list and sell on the MLS, although a search of the tax records will sometimes find a few more. The below sales are as reflected in a search on CRMLS.

The condo market is almost one-third of the sales in the last 90 days in Long Beach, with 90 condos ranging in price from $210,000 to $2,075,000, with days on market ranging from 0-263.

Condo Sales Mar-May 2025

Single Family in Bixby Village

The single family home market was 318 sales, ranging in price from $360,000 to $4,740,000, with days on market ranging from 0-347.

SFR Sales Mar-May 2025

 

Mission style 4Plex (AI)

Four plex sales came to 21 for the previous 90 days, ranging from $939,000 to $2,579,000, with days on market ranging from 3-394.

Quadruplex Sales Mar-May 2025

 

Duplex in Spanish style (AI)

Duplex sales totalled 26 for the last 90 days and ranged rom $662,500 to $3,550,000, with days on market ranging from 1- 248.

Duplex sales Mar-May 2025

For a quick search of properties, whether it's a house, condo, multiunit or even a rental, go to this easy property search.  It's direct from CRMLS so you will see all the same property information.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Investors: Calculate Cash-on-Equity Return on a Rental Property (Simple Guide)

Waiting for New Occupant

💡 How to Calculate Cash-on-Equity Return on a Rental Property (Made Simple)

If you already own rental property, you're probably building equity—but do you know how much return you're getting on that equity? Many investors are surprised to find out their true situation.

That’s where Cash-on-Equity Return (also called Return on Equity or ROE) comes in. It helps real estate investors track how well their money is working as the property's value (and your equity) increases over time.

In this post, we’ll explain in simple terms how to calculate it—and why it’s so important for long-term rental property investing.  

🧮 What Is Cash-on-Equity Return?

Cash-on-equity return measures how much annual profit your property is generating compared to how much equity you have in it. It answers this question:

    "How much income am I earning from the money I currently have tied up in this property?"

This is especially useful after you've owned a property for a few years, when the value has gone up and your mortgage balance has gone down.  

📊 Why Cash-on-Equity Return Matters

When you first buy a property, you may focus on cash-on-cash return—your return based on your original investment. But over time, your equity grows, and cash-on-equity return helps you decide:

    Should I hold this property?

    Should I refinance to pull out equity?

    Should I sell and reinvest for better returns?

✏️ How to Calculate Cash-on-Equity Return
    📌 Formula:

    Cash-on-Equity Return = Annual Cash Flow ÷ Current Equity
    Annual Cash Flow = Net income after all expenses and mortgage payments
    Current Equity = Property’s current market value – loan balance

       🏡 Example:

    Let’s say you’ve owned a rental property for 5 years. Here's where things stand:

    Current Market Value: $500,000
    Remaining Loan Balance: $300,000
    Equity: $500,000 – $300,000 = $200,000

    Now let’s say your annual cash flow after all expenses and loan payments is:  $8,000 per year

    Calculation:  $8,000 ÷ $200,000 = 0.04 or 4%

    ✅ Your Cash-on-Equity Return is 4%  

🚩 What’s a Good Cash-on-Equity Return?

There’s no universal "perfect" number, but here’s a general guide:

    Under 4%: Your money might work better elsewhere
    4–6%: Average for stable, long-term rental properties
    7% or more: Strong performance, especially for turnkey or low-maintenance units

If your cash-on-equity return drops too low, it may be time to consider:

    Refinancing to pull out cash and invest elsewhere
    Selling and exchanging into a higher-yield property (1031 exchange)
    Renovating to raise rents and increase income

🛠️ Pro Tip: Reevaluate Your Equity Every Year

Many investors forget to recalculate their returns as property values rise. Even if the rent stays the same, your equity grows, which could lower your return if income doesn’t increase with it.

Set a reminder to check your cash-on-equity return annually—it’s a smart habit for every real estate investor.  

🏁 Final Thoughts: Know What Your Equity Is Earning

Understanding cash-on-equity return helps you make smarter decisions about your portfolio. Whether you’re holding, refinancing, or thinking about selling, this number tells you if your equity is doing enough for you—or if it’s time to reinvest for better returns. Do you need to refinance or sell and acquire a superior property via a 1031 Tax Exchange?

📞 Need Help Evaluating Your Rental Property’s Performance?
Would you like an estimate of your current property equity, and the 5 Steps Guide in calculating return on equity?  Huntsman Properties will help investors assess their cash flow, equity, and long-term ROE.  Whether you're thinking about holding or reinvesting, Huntsman Properties will run the numbers and guide you every step of the way.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Have You Tried Calculating Your PITI Recently?

Sometimes it's important to review basic aspects of financing a new purchase, or maybe you're a homeowner looking at refinancing.

Understanding your monthly mortgage payment is crucial when buying and owning a home. A key concept in this process is PITI, an acronym that stands for Principal, Interest, Taxes, and Insurance. These four components make up your total monthly mortgage payment and are essential for budgeting and loan qualification.

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🧮 What Does PITI Stand For?

1. Principal: The amount you borrow from the lender to purchase your home. Over time, your payments reduce this balance, building equity in your property.​

2. Interest: The cost of borrowing money, expressed as a percentage rate. This is the lender's charge for the loan.​

3. Taxes: Property taxes levied by local governments, typically based on your home's assessed value. These funds support community services like schools and infrastructure.​

4. Insurance: Homeowners insurance protects against damages from events like fires or storms. If your down payment is less than 20%, you might also pay Private Mortgage Insurance (PMI)

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🏡 How to Calculate Your Monthly Mortgage Payment (PITI)

To estimate your monthly mortgage payment, follow these steps:​

1. Determine Principal and Interest:

   • Use a mortgage calculator or the formula:

     
     Where:

     • $M$ = Monthly payment

     • $P$ = Loan principal

     • $i$ = Monthly interest rate (annual rate divided by 12)

     • $n$ = Total number of payments (loan term in months)

2. Estimate Property Taxes:

   • Property taxes vary by location but often range from 1% to 2% of your home's value annually. Divide the annual tax by 12 for the monthly amount. In California when purchasing a new property, the property tax rate is most commonly calculated at 1.25%.​

3. Estimate Homeowners Insurance:

   • Annual premiums typically range from 0.15% to 0.5% of the home's value. Divide the annual premium by 12 for the monthly amount.​

4. Add PMI (if applicable):

   • If your down payment is less than 20%, estimate PMI at about 0.5% to 1% of the loan amount annually. Divide by 12 for the monthly cost.

5. Calculate Total PITI:

   • Add together the monthly amounts for principal, interest, taxes, and insurance to get your total monthly mortgage payment. (See below about HOA dues).
     

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📊 Example Calculation

Suppose you're purchasing a $350,000 home with a 5% down payment and a 30-year fixed mortgage at a 7% interest rate:​

• Loan Amount (Principal): $332,500

• Monthly Principal & Interest: Approximately $2,212

• Monthly Property Taxes: Approximately $583

• Monthly Homeowners Insurance: Approximately $52

• Monthly PMI: Approximately $138​

Total Monthly Payment (PITI): Approximately $2,975​

If HOA Dues for a Condo: Add $350 to $400, Total Monthly Payment (PITI + HOA): approx $3,375.

Try this online calculator from the Fannie Mae site.

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💡 Why PITI Matters

• Budgeting: Understanding PITI helps you determine how much home you can afford and ensures you're prepared for all associated costs.

• Loan Qualification: Lenders assess your PITI in relation to your income to determine loan eligibility. A common guideline is the 28% rule, where your PITI should not exceed 28% of your gross monthly income, however, consult with a loan officer because loan programs vary.

• Financial Planning: Being aware of all components of your mortgage payment aids in long-term financial planning and prevents unexpected expenses.​

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🔍 Additional Considerations

Beyond PITI, be mindful of other potential costs:​

• Homeowners Association (HOA) Fees: Applicable if your property is in a community with shared amenities.

• Maintenance and Repairs: Regular upkeep and unexpected repairs can add to your monthly expenses.

• Utilities and Services: Electricity, water, trash collection, and other services are separate from your mortgage payment.​

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For more explanation of calculating your monthly mortgage payment, you might find this video helpful: 

​

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Understanding and calculating your PITI is essential for making informed decisions during the homebuying process. By accurately estimating these costs, you can ensure that your future home fits comfortably within your budget.​

Sources:  Chase Bank, Bankrate, Lending Tree, Newcastle Home Loans

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Gorgeous Top Floor End Unit with Views in West Hollywood

View to Downtown L.A.

Front Entry

Living/Dining View

Are you looking for the right place in the Los Angeles area in the right location? 

This top floor, end unit, meticulously remodeled luxurious condo in West Hollywood offers three private decks (including a private rooftop deck with panoramic views) and is like nothing you will ever see! It is truly a one of a kind, rare piece of real estate that you can call home! This is an absolute dream spot—flooded with natural light and jaw-dropping views.  The private rooftop and deck offers views of The Hollywood Sign, Griffith Park Observatory, Getty Center, and the Pacific Design Center! Not to mention the unbeatable location—amazing restaurants, shops, and even a farmers' market at Melrose Place. Truly a one-of-a-kind gem which also includes community pool and clubhouse, two parking places. This is a 2 bedroom and 2 bath, plus a loft, unit.

 Are you considering this as your next potential haven, or are you just admiring the possibilities? Either way, it’s exciting. You owe it to yourself to see this one of a kind sanctuary.  Please click on the link below for complete photos and information about the property, the area, and local market values.

 If you are interested in this property, just contact me!

Go here for more information https://portal.onehome.com/en-US/share/1932426d72883 

#westhollywood  #condo  

Listing Broker: Y Realty. Listing marketed with permission of listing agent.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Rent Regulations in California Condominium HOAs - Civil Code 4147

Entryway to Condo Building

At one time, condo boards of directors and HOA members could put various restrictions in their rules and regulations, or CCRs, about restricting the number of rentals in an HOA, or even having no rentals at all.  The reasoning was understandable: no risk of having too many renters in the HOA which could prevent interested buyers from receiving approved loans, and no problems dealing with uncooperative tenants or any absentee landlord owners, or very few, to name a few issues. Another restriction was a qualification for a newer owner to be an HOA member of a certain length of time, such as 2-3 years, before being allowed to rent out a unit.  There were no local, county or state laws which prevented an HOA from putting such restrictions in place.

But those restrictions are no longer allowed, even if the HOA documents still contain the language. Beginning January 1, 2021, a bill signed into California law an Assembly Bill which became Civil Code 4741, an amended version of Civil Code 4741 came into effect January 1, 2022.

Important facts:

    1. As of July 1, 2022, Civil Code section 4741 provides that associations cannot have restrictions in their governing documents, or make amendments to the governing documents, that prohibit or unreasonably restrict “the rental or leasing of any of the separate interests, accessory dwelling units (ADUs), or junior accessory dwelling units (JADUs) in the HOA to a renter, lessee or tenant.”

    2. Restrictions capping the number of rentals to less than 25% are no longer permitted. However,,,,, rental caps can be higher, such as 25%, 30%, etc.

    3. Condos and HOAs can still ban short-term rentals and stop unruly parties from impacting the community. Short term rentals less than 30 days are not allowed, however, owners can now create valid rental agreements lasting 31 days or longer. They are not required to rent out units for a minimum of six months or one year.  

    4. The restriction requiring an owner to own or reside in a unit for a minimum time before renting is no longer enforceable under Civil Code section 4741.

    5. Finally, the new law does not change the right of an owner who was already renting out their unit before the new law to continue renting or leasing their unit.

 So, an HOA consisting of 35 units, the required rental minimum is (8.75, or) 9 units, or 25% minimum allowed rentals, if there are at least that number of owners wishing to rent their units.

While this new law was controversial for a few reasons, it nevertheless was signed into law, and accordingly, "A common interest development that willfully violates this section shall be liable to the applicant or other party for actual damages, and shall pay a civil penalty to the applicant or other party in an amount not to exceed one thousand dollars ($1,000)."

An HOA member wanting to know more about these requirements is advised to consult a legal professonial. More information can be found online at a number of legal sites, including this one about rent restrictions.

If you would like information about selling your unit, or buying into an HOA, please contact me for a list of required disclosures when selling a condominium.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996