Long Beach Own Your Owns-OYO-OYOs-Condo Conversions-Income Properties in Long Beach
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What the Heck is an OYO?
Why would I want to own one?
Long Beach has been home to many Own Your Owns over the years. They can be found throughout Downtown Long Beach, Alamitos Beach, Bluff Park and into Belmont Heights; older, usually 2 or 3 story buildings tucked between newer and sometimes taller buildings. Recent Condo Conversions have trimmed the numbers of available OYOs considerably. OYOs used to be a really good investment, selling for considerably less than Long Beach Condos, they proved to be a very desirable purchase. When they successfully converted to condominiums owners realized large profits. Often condo conversion was the motivation for purchasing an Own Your Own.
Many buyers ask about OYOs. They want to know if they are the same as a condo, or more like a stock cooperative.
OYOs are similar in ownership to condos in that they are both fee simple ownership with individual tax bills and deeds. OYOs are a pre-condominium form of ownership, mostly built in the 50s. They generally sell for less than condos and are occasionally candidates for condo conversion, if they qualify, at which time they increase in value dramatically. Often OYOs will not have sufficient parking to qualify for condo conversion.
OYO Financing
At this time there is very limited financing available for the purchase of OYOs. Few are selling, those that do sell are often all cash purchases, or seller financing. Traditionally FNMA and FHA have not supported home loans for OYOs. OYOs are difficult to sell which is a major drawback to purchase.
UPDATE: There is limited financing available for owner occupied OYOs, with strict guidelines:
- Buyer must purchase as their primary residence, no non-owner occupieds will be considered.
- Minimum 20% Down Payment is required - no exceptions.
- Mimimum FICO score is 640.
- Owner Occupancy rate in building must be 55% or higher. (If this standard is not met down payment requirement will be increased to 40% or more.)
- No stated income loans are available.
Condo Conversions
Many existing buildings, which have already been approved for condo conversion, have opted not to convert at this time. Current market conditions of Long Beach Real Estate and the high cost of conversion have made condo conversion cost prohibitive, at this time. This bodes well for our city as the number of conversions in recent years has bitten deeply into the cushion we have in our apartment vacancy rate. The conversions of recent years have removed many rental units from the market here in Long Beach. With the high number of foreclosures many families are in need of affordable rental housing, which is becoming increasingly difficult to find.
Income Properties
The silver lining in all of this is that landlords will profit; income property sales, which have been stagnant will begin to revive, rents will increase and vacancies will not be an issue. Hey, somebody always wins.
| Laurie MannyLong Beach Realtor (562) 212-5420 |
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Main Street Realtors Belmont Heights 244 Redondo Avenue Long Beach California 90803 |
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