Predicting upcoming areas in Southern California / Buy and Hold

[Bryce Lowe-White]

I would love to hear some of your buy and hold success stories in Southern California. Whether it was an investment or you lived in the property I would love to hear where you bought and when. What neighborhoods were ignored / thought to be too rough / no hope / not safe / etc. but that you believed in and led you to a big profit as the area changed and became desirable.

I bring this up because I was talking with an older friend yesterday about trying to buy my first house this year. I live in San Pedro (Los Angeles) and see some great potential in the next 5-10 years in the neighborhoods surrounding the waterfront. But currently, it is a rough neighborhood down there.

My friend told me he bought his first house in Belmont Shores (Long Beach) for $250k a while back following a gut feeling that the area was going to turn around. It was a rough neighborhood at that time. He didn't say how long he held it but he raised his family there as the town turned around and ended up selling for over $750k 5 years ago. He said the neighborhood is in the $900k range today!

Interested to hear what people have done in the past in Southern California and where they are seeing opportunity in the future. Also if you experienced the opposite - buying too early / failed attempts / big losses - please share!!

[Kiersten Vance]

Hello Bryce!

We bought a run down tiny house in the low income/commercial part of Glendale in 2013 and sold in 2015 for double what we paid for it. We then used that money to buy in a residential neighborhood in Cypress and our house has gone up at least 100k since we purchased it. I do agree with Tim Ryan though that we must be close to the top of the market. We understood that when we purchased our new home and are willing and able to stay if the market drops again. I would suggest if you are looking to buy something, try to find an older home that needs work where you can at least be buying under market value. Best of luck!