Needs attention
Everything that is open right now, in deadline order. When this list is empty, the deal runs itself.
- Mon Sep 1 — Investigation, insurance, seller docs, and title contingencies expire (10 days from acceptance lands on Aug 31; contract performance rolls Sunday to the next business day). The repair credit ask is in; contingencies come off once the seller responds, or the response deadline forces the call.
- ~Sep 2 — HOA document review closes (5 days after delivery). Before releasing: get a unit-106 dues statement from Topanga, and ask for the SB 326 balcony inspection report and its findings.
- Before Sep 8 — Pick the loan. Morgan Stanley disclosures pending; the 7-year ARM at 5.75% is the leader if the terms check out. Loan contingency runs to Sep 7 (Labor Day), effectively Sep 8.
- This week — Choose the HO-6 (AAA vs Mercury) and order the CEA earthquake companion quote with $100k loss-assessment coverage. Coverage must be bound before closing.
- By Sep 22 — Wire day, at or before the signing. Call Camden Escrow at (323) 463-4480 and verbally confirm wire instructions before sending anything. Never trust emailed instructions alone.
Repair credit covering the inspection list was requested Aug 28; seller response pending. Appraisal contingency (Sep 4) is already satisfied: appraised at exactly $935,000 on Aug 25.
The deal
| Seller | Boyich Living Trust |
| How the price landed | Listed $995k on Jul 30 · cut to $949k Aug 19 · offered $910k Aug 20 · seller countered $935k · accepted Aug 21 |
| Deposit in escrow | $28,050 (3%), wired to Camden Escrow |
| Occupancy | Primary residence |
| Escrow / Title | Camden Escrow (Michele Hunstable) / Fidelity National Title (Loren Goldman) |
| Close of escrow | Wet signing Sep 22 · records ~Sep 24 (slipped from the original Sep 21) |
| Repair credit | Requested Aug 28, covering the full inspection list pending |
| Seller pays | Transfer taxes, owner's title policy, 2.5% buyer-broker compensation |
The appraisal used comps at $920k, $1,020k, and $1,090k on Glencoe Ave, adjusting to $931.6k-$940.6k. Contract price sits in the middle of the adjusted range. 17 competing units were listed in the area at the time.
Inspection & repairs credit pending
LaRocca inspected Aug 25. Everything found is minor - roughly $1-2k of plumber work - and a repair credit covering the full list was requested Aug 28.
- Kitchen sink hand spray inoperative; kitchen drain line corroded (evidence of past leaks)
- Hallway bathroom sink won't drain / stopper stuck
- No drip pan under washer
- Condensate line not visible/verifiable; seismic gas shutoff valve undetermined (meter area locked)
- Fire sprinkler certification: confirm status with HOA
The money
Everything financial in one place: what closing takes, which loan, what a month costs, and what the tax man gives back.
Cash to close
| Item | Amount |
|---|---|
| Down payment balance (after the $28,050 deposit) | $345,950 |
| Escrow, title, and lender fees + ~10 days prepaid interest | ≈ $8,100 |
| First-year HO-6 insurance premium | ≈ $1,800–2,200 |
| Seller credit: property tax proration | − $2,899 |
| Lender credit (US Bank $7,736 / Morgan Stanley $5,610) | − $5,610 to 7,736 |
| Estimated wire | ≈ $346,000–347,000 |
Cori's savings covers the down payment. Everything beyond it nets to roughly $0-1,500 after credits, essentially the insurance premium. Impounds are waived, and the pending repair credit reduces the wire further. Final figures arrive on the Closing Disclosure a few days before signing.
The loan: two applications, one pick decide by Sep 8
| U.S. Bank | Morgan Stanley | |
|---|---|---|
| Product | 5-year ARM (5/1) | 7-year ARM |
| Rate | 5.875% | 5.750% |
| P&I / month | $3,318.53 | $3,273.83 |
| Lender credit | +$7,736 | +$5,610 |
| Lender fee | −$1,495 | −$15 |
| Net at closing | +$6,241 | +$5,595 |
| Payments, first 24 months | $79,644.72 | $78,571.92 |
| Net cash out, first 24 months | $73,403.72 | $72,976.92 |
| Loan balance at month 24 | $546,465.97 | $546,137.69 |
| Cash break-even | Baseline | Ahead from month ~15 |
| Net wealth at a year-2 refi | Baseline | +$755 |
| After the fixed period | 1-yr Treasury + 2.75%, caps 2/2/5, max 10.875% | Disclosures pending |
| Rate lock | Locked to Oct 9 | Locked Aug 28 at 5.750% |
| Impounds | Waived (40% down) | |
| Status | LE issued Aug 27 | disclosures pending |
Working pick: Morgan Stanley, if the disclosures confirm the terms. It wins on rate, wins by two extra years of fixed-rate protection, and roughly ties on closing cash (US Bank's $646 edge is repaid by the lower payment in about 15 months). US Bank stays alive as the locked, appraised, ready-to-close backup until MS issues a clear-to-close for the ~Sep 24 closing. Still to verify with MS: index, margin, and caps after year 7 · whether the 1% credit carries an asset condition · lock expiration covering the ~Sep 24 close.
The four projection rows come from the final head-to-head worksheet (Aug 27): both loans modeled over a two-year hold ending in a refi, both treated as 5-year products. US Bank's $646 closing-cash edge is repaid by the lower payment by month ~15, and MS finishes every later checkpoint ahead. The 7-year fixed period is not in those figures; it only widens MS's lead after year 5.
Why a mortgage and not the LAL (decided Aug 28): the line runs 4.90% today (SOFR + 1.25, floating) against the mortgage's 5.75% fixed, but mortgage interest is deductible here and LAL interest used to buy a home is deductible nowhere, closing the true gap to roughly 0.2 points - and to roughly nothing if California residency lands. A $561k draw would also fail the stress test: a 30% drop in the collateral stock puts the line at 55.6% against the 55% maintenance threshold. Fixed, capped, deductible, and never margin-called beats floating and callable for a rounding error. A smaller, optional LAL draw to re-lever investments can be decided any time after closing; it does not belong inside the purchase.
Monthly cost of owning
| Piece | Monthly | Notes |
|---|---|---|
| Principal & interest | $3,274–3,319 | MS vs US Bank |
| Property tax | ≈ $960 | New $935k basis, ~1.2% + local levies; self-paid, no impounds |
| HOA dues | ≈ $752 | Unit-106 exact figure pending; see the HOA tab |
| HO-6 insurance | ≈ $150–185 | AAA vs Mercury |
| CEA earthquake | ≈ $30–60 | Estimate; quote pending |
| Total | ≈ $5,170–5,280 | Before tax savings of ≈ $300+/mo |
Comfortably inside the $6,500/mo housing-and-saving budget modeled at home.flyhi.ai.
Taxes & standing deadlines
| When | What |
|---|---|
| Nov 1 / Dec 10 | First property-tax installment due / delinquent. ≈ $5,500-6,000, self-paid since impounds are waived |
| Feb 1 / Apr 10 | Second installment due / delinquent |
| After closing | Supplemental assessment: the county re-bases to $935k. The seller's assessed value appears higher, so this may arrive as a downward adjustment rather than a bill - read it before paying anything |
| Once | File the homeowners' exemption with the LA County Assessor (small but free, ~$80/yr) |
| Dec 14, 2026 | HOA master insurance renewal - watch for premium jump and dues impact |
Deduction picture: ~$32k first-year mortgage interest + ~$11.5k property tax against the $32,200 standard deduction returns ≈ $3,600/yr at a 32% marginal rate. If California residency lands (primary residence here implies it), state taxes push itemizing past the SALT cap and the mortgage deduction becomes worth roughly $10k/yr, dropping the effective mortgage rate near 4%.
The building, in brief
Innove HOA runs underfunded reserves, a negative operating account, and no earthquake coverage, and it just changed both its president and its management company. Budget for special assessments. The full picture, problems and facts alike, lives on its own tab.
Insurance
| AAA (final) | Mercury $1M | Mercury $500k | |
|---|---|---|---|
| Annual premium | $1,756 | $2,208 | $1,867 |
| Building property | ≈$150k | $150k | $150k |
| Personal property | $99k | $100k | $100k |
| Liability | $500k | $1M | $500k |
| Deductible | $3,000 | per quote | |
| Loss assessment | not shown on quote | $25k included ($12/yr) | |
Loss-assessment coverage matters in this building for ordinary perils (fire-type events assessed past the master policy), and Mercury includes it. If AAA wins on price, confirm it can add the same rider before binding.
Earthquake: the CEA companion quote pending
With no master quake policy behind the building, a CEA condo policy is the one individual hedge. Target shape: $100k loss-assessment coverage (covers your share of a quake special assessment - the board's own scenario was $85k/unit), minimal contents, 10-15% deductible. Estimated $300-700/yr stripped down; both AAA and Mercury are CEA participating insurers, so the HO-6 agent quotes it in the same breath. Standard HO-6 loss assessment pays nothing in a quake - earthquake is an excluded peril; only the CEA version covers it. Neither flavor covers maintenance assessments (roofs, paint); nothing insures those.
Also useful in the CEA policy: loss-of-use pays temporary housing if the building is red-tagged, the most likely quake outcome for a 2013 code-built structure. And the true worst case is capped: a California purchase-money loan on your own home is non-recourse, so maximum exposure is the equity, not the loan.
The unit
| Layout | 3 bed / 2 bath · 1,388 sq ft · floor 1 of 4 · patio |
| Built | 2013 · condition rated C3 (well maintained, original quality finishes) |
| Systems | Central gas FAU heat + central AC · communal water boiler (via HOA) · in-unit washer/dryer hookups |
| Parking | 2 covered assigned spaces |
| Flood zone | FEMA Zone X (minimal hazard); no flood insurance required |
| APN | 4230-008-63 |
Seller disclosures (TDS) are clean: no known defects, no litigation, no insurance claims disclosed.
After closing
- Give Topanga 7 days notice + $250 fee before the move; don't prop the entry doors or hold the elevator
- Set up LADWP electric; confirm with Topanga exactly which utilities flow through the HOA cost center (gas, water, trash are association-billed)
- File the homeowners' exemption; calendar both tax installments
- Confirm CEA and HO-6 policies in force from day one
- Fix the small plumbing list (or spend the credit on it)
- Locate the seismic gas shutoff valve situation with the HOA
- Attend the next board meeting - reserve funding and the master-insurance renewal are live issues worth a voice
- Decide the optional LAL-and-invest leverage question with a clear head (model to be built)
- Remember: no renting the unit before Sep 2027, hard rule
People
The documents
Everything lives in Google Drive under Finances → Home Purchase → Real Estate → Glencoe Lofts → 13337 Beach Ave $106: purchase agreement and counter, seller disclosures, inspection report, appraisal, loan estimates, escrow statements, insurance quotes, and the complete HOA package (CC&Rs, budgets, reserve study, financials, minutes, master policy).
Companion tool: home.flyhi.ai - the financing calculator this deal's mortgage-vs-LAL decision was modeled on.
Innove HOA at a glance
39 units, built 2013, four stories over garage, elevator, rooftop and courtyard decks, secured entry, central water boiler. Managed by Topanga Property Management since June 2026. Everything below comes from the full HOA document package delivered in escrow: CC&Rs, 2026 budget, reserve study, financials through May 2026, master policy, and six sets of board minutes.
The problems
Ranked by how much they can cost. None is a reason to walk at this price; all are reasons to budget and to show up at meetings.
1 · Reserves are starved: 20% funded
The reserve study holds ~$168k against an $828k fully-funded target and recommends $89,979/yr of contributions. The board contributes $34,000, and in December 2025 it skipped $5,666 of even that. Healthy buildings sit at 70%+; under 30% is the industry's warning zone. Dues have been kept low by not saving.
2 · The 2026 repair plan is bigger than the bank account
The study schedules $209,904 of work this year - building paint $90k, deck coatings and engineering ~$78k, sprinkler repairs, sump pumps - against ~$150k on hand. 2029 brings $233,782, mostly roofs. The gap becomes special assessments or deferral. Working budget: $10k-20k of special assessments over the first 3-5 years. Every $100k the HOA raises is ~$2,600 per unit.
3 · The operating account is broke and borrowing from reserves
May 2026: operating funds −$37,402, the checking account itself overdrawn, and $35,755 effectively borrowed from reserves to pay bills. Three of 39 units are in lien/collections with ~$23.7k receivable. This is cash-flow strain, not yet insolvency, but it removes all cushion.
4 · Earthquake insurance: dropped May 2026
The board let the master quake policy lapse: ~$33k/yr premium, a $3.32M deductible, and a $10M cap on a ~$22M building made it nearly decorative. Defensible for the HOA, but the risk moved onto the owners; the board's own scenario put deductible-scale exposure at ~$85,000 per unit. The individual hedge is a CEA companion policy with $100k loss-assessment coverage (see the file tab's insurance section).
5 · Dues are understated in the lender paperwork
The appraisal and the Loan Estimate both carry $571/mo. The actual ledger figure for a comparable unit is $752.19/mo. Unit 106's exact number is still owed to us - the doc package in escrow was assembled for unit 108. Chase the unit-106 statement before the HOA review contingency lifts.
6 · Governance turbulence
In one May 2026 meeting the board removed its president from office, asked him on the record to resign from the board entirely (he refused; the board noted it would take "appropriate steps"), voted the quake policy dead, and fired the management company. Election rules were being redrafted as of June. Expect a noisy year exactly when the funding decisions land.
7 · Open verification items
The SB 326 balcony inspection (state-mandated for elevated wood decks; the statutory deadline has passed and the study shows deck engineering due in 2026) - ask whether the report exists and what it found. Also: the master policy renews Dec 14, 2026; the building carries a $19.186M limit against a board-estimated ~$22M value, so watch that renewal for both premium and adequacy.
Dues, decoded
| Piece | Monthly | What it is |
|---|---|---|
| Regular assessment | $567.91 | Equal across all 39 units; funds operations + reserves |
| Utility cost center | ≈ $129 | Varies by unit. The HOA buys gas, water, trash, and common electric centrally and bills each unit its share |
| Interim-budget adjustment | $55.50 | Added March 2026 |
| Comparable unit actual | $752.19 | Unit 108's ledger, paid monthly by ACH |
Unit 106's exact figure arrives with the escrow demand. Because the boiler is communal and water/gas/trash run through the cost center, the separate utility bills you'd set up yourself are basically LADWP electric plus internet.
Where the money goes
2026 interim budget: $265,785 of income. The big lines:
| Line | $ / year |
|---|---|
| Utilities (water, gas, trash, electric, comms) | 87,194 |
| Insurance (master + the now-lapsed EQ line) | 60,798 |
| Professional services (management $25.7k, legal, audit) | 36,740 |
| Reserve contribution | 34,000 |
| Repair & maintenance | 26,887 |
| Contracted services (janitorial, elevator, fire, pest) | 22,708 |
| Landscaping | 15,860 |
Note the shape: utilities and insurance are almost half the budget, and both only go up. The reserve line is the one being underfed.
The repair calendar
From the November 2025 reserve study (Strategic Reserves, Level 2 with site visit). What's scheduled and roughly when:
| Year | Planned spend | Headline items |
|---|---|---|
| 2026 | $209,904 | Building exterior paint ($90k), deck coatings + engineering inspection (~$78k), fire sprinkler repairs, sump pumps |
| 2028 | $46,506 | Gate operators, entry phone system, security cameras |
| 2029 | $233,782 | All roofs (~$170k, main building $133k), garage/stairway paint |
| 2031 | $89,359 | Paint touch cycle, deck recoat |
| 2034-36 | ~$400k | Boiler, light fixtures, fire panel, mailboxes, water systems |
| 2044 | $1.31M | The big one: balcony/walkway deck rehab, elevator modernization, planter relining |
The study's own funding plan only works if contributions rise to ~$90k/yr and then grow 5%/yr. At the current $34k pace, the 2026 and 2029 lines force special assessments or deferral. Deferred paint and deck coating tends to become structural repair, which costs multiples.
Master insurance
| Carrier | Farmers / Mid-Century · renews Dec 14, 2026 · premium $26,163 |
| Building | $19.186M blanket, extended replacement cost, 8% annual auto-increase |
| Deductible | $5,000 - charged to the owner whose unit the damage originates in (CC&Rs). Your HO-6 building coverage absorbs it |
| Unit interiors | Original build-out included in the master ("all-in" for original spec) |
| Liability | $1M per occurrence / $2M aggregate · D&O included |
| Earthquake | None since May 2026 |
| Ordinance & law | Demolition $1.11M + increased cost $2.22M included |
What this means for the HO-6: your policy covers your improvements, contents, the $5k master deductible, liability inside the unit, and loss assessment for covered perils. It does not need to duplicate the structure - the master carries that.
Rules that bind
- No renting the unit during the first year of ownership. Recorded CC&R amendment (Nov 2017), binds every post-2017 buyer. Hard rule, runs to Sep 2027.
- After year one: 30-day minimum leases, written lease on a board-approved form filed with the HOA, no short-term or hotel-style use.
- If an owner goes 30+ days delinquent, the HOA can collect the tenant's rent directly.
- Move-in/move-out: $250 fee, 7 days written notice. No propping entry doors, no holding elevator doors.
- Pets: 25 lb weight limit, vet documentation required on move-in.
- The $5,000 master-policy deductible falls on the owner whose unit the damage starts in - a burst supply line in your unit is your deductible.
- Kitchen drains: no grease, rice, pasta, wipes (building has had line issues; hydro jetting was a 2026 board item).
- Violations run through a warning-then-fine schedule; damage to common areas is billed to the responsible unit.
Board & management
| Management | Topanga Property Management · (800) 665-9158 · replaced Associa-PCM June 2026 |
| Board | 5 directors. President: Alison Rosenberg (since May 2026). The removed president remains a director after declining to resign |
| Meetings | Monthly-ish, via Zoom, with a homeowner forum. Minutes show 4-6 owners typically attend out of 39 |
| Elections | New election rules drafted mid-2026 (28-day comment period) - a board seat or at least a vote is genuinely available to a new engaged owner |
| Delinquencies | 3 units in lien/collections as of mid-2026 |
The practical read: this is a small self-governed building where a handful of engaged owners decide everything. The reserve underfunding and the insurance decisions were made by people who showed up. Showing up is cheap influence over your largest shared asset.