How do I sell a Silver Lake rental property as part of a 1031 exchange?

1. Meet your CPA or tax attorney and choose a qualified intermediary before listing.
2. Pull the parcel's ZIMAS report for its zone and any overlays that may apply.
3. Gather the rental file: leases, rent history, deposits, notices and any rent registration records.
4. Confirm with LAHD whether the Rent Stabilization Ordinance may apply to the units.
5. Set a showing plan that respects tenants' notice rights.
6. Price from income and sales, then review offers with your advisers.
7. Give escrow the intermediary's instructions so the closing follows the exchange plan.

Plenty, because Silver Lake is mixed. The City's generalized zoning layer shows R2, RD and R3 multi-unit zones alongside R1 single-family zones in the neighborhood, often within a few blocks of each other. A buyer will want to know what the lot allows today, whether an accessory unit may be possible, and what limits apply on a slope.

On hillside lots, City Planning's Baseline Hillside Ordinance (Ordinance No. 181,624) limits floor area by slope band on R1, RS, RE and RA lots in the Hillside Area, and City maps place most of Silver Lake in that area. That shapes what an investor can add. The parcel's ZIMAS report is the starting point; a buyer's architect or the City confirms the rest.

It may. LAHD says the RSO generally applies to rental units first built on or before October 1, 1978, including units in duplexes and properties with two or more houses on one parcel; a single-family home alone on its lot is generally not covered. There are exceptions and exemptions, so confirm the property's status with LAHD before you list. Buyers price RSO status, registration and current rents into their offers.

With notice, a schedule and respect for the tenants' home. Your attorney can confirm the notice rules for entry; I plan fewer, better-organized showings and offer video walk-throughs where tenants agree. On hillside streets, parking matters: some hillside streets have posted Red Flag No Parking signs; on declared Red Flag Days, cars parked there are towed. Parts of Silver Lake are mapped as a Very High Fire Hazard Severity Zone, but not every street is. Check the specific parcel on ZIMAS or the CAL FIRE map, and confirm with the natural hazard disclosure in escrow. Where it applies, LAFD requires year-round brush clearance.

From the rent roll and from recent nearby sales of similar properties, adjusted for condition, unit mix, parking and permit status. Buyers look at income, the rules that may limit rent growth and the work the building needs. My review is a broker opinion of price, not an appraisal.

Federal tax rules set the exchange deadlines; your CPA or tax attorney and qualified intermediary explain how they apply to you, and I plan the listing and closing dates around them. Tell me early if you need a longer escrow, a specific closing date, or time to line up the replacement property, so those terms go into the offer review.

LA County's documentary transfer tax is $1.10 per $1,000 of the sale price; some cities add their own tax, and your escrow estimate shows the exact figure. For qualifying transactions closing after June 30, 2026, Los Angeles Measure ULA imposes an additional 4% tax when the value conveyed exceeds $5,400,000 but is below $10,900,000, or 5.5% when the value conveyed is $10,900,000 or more. The applicable ULA rate is calculated on the full gross value conveyed, not just the amount above the threshold. The City's 0.45% base transfer tax and the County documentary transfer tax are separate charges. Confirm the calculation and any applicable exemptions with your escrow officer.

LADBS requires the seller of residential property in the City of Los Angeles to give the buyer a Residential Property Report before the sale or the close of escrow (LAMC Section 96.300; $70.85 per report as of October 30, 2026). The LADBS Form 9 application says no new report is needed for six months after one is issued, and it lists exceptions, including property exempt from the documentary transfer tax and the first sale of a home in a subdivision whose final map was recorded not more than two years earlier. Check your transfer with LADBS before ordering.

The amount or rate of real estate commissions is not fixed by law. They are set by each broker individually and may be negotiable between the seller and broker.

What to bring to your CPA or attorney: your purchase and improvement records, depreciation schedules, the rent roll and leases, the qualified intermediary's agreement, the estimated closing statement, and details of any replacement property you're considering.

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Sidney Manzo, CA DRE #01108914
In real estate since 1990 · RE/MAX Hall of Fame · Member, Pasadena Foothills Association of REALTORS® and California Association of REALTORS® (C.A.R.)
Brokerage: RE/MAX Dream Properties (ASLG Inc), CA DRE #02142193