In real estate time beats inflation.
My parents moved to San Pedro in the 50's from NYC.
They always had commercial/retail property down on Beacon St.
My dad was a wise guy so the properties had multiple uses, lets just say. He played the horses & cards & was the known bookie of SP.
I went to work w him from age 5 & watched him do buz in every bar, mens clothing store, gift shop, car wash, deli, & restaurant. So lets just say I am good w the numbers. I was in the bar buz for 30 yrs. & thanks to my real estate investments am now retired from that.
He also invested in real estate.
Our first house we bought for $10,000 /324 N Walker St.
We sold it for $20,000 to move up on the hill.
That house today is worth over $400,000.
We bought 2104 W.Crestwood st. /$20,000 and sold it for $37,000 in 1972. Thats when my mom burned the bra for womens lib! (divorce).
Today that property is worth over $700,000.
One time while living on Crestwood a bunch of FBI agents raided our home. It was just like The Godfather, they hit everyone at the same time of day that was working for my dad. I memo letting the guy in my room, I thought he was the real estate agent!!!!!!
So then we rented. We lived at Miraleste Pines which used to be the old Hacienda. Then we moved to the low income housing for white trash on 19/Western for 20 yrs. I moved away to HI. for 20 yrs. But when I moved back the rent control rent was $250 for a 3 bed at Southwinds in 1988. They paid everybody to move & lied about landslide area and built the Cape.
We rented on 25th st for 10 yrs. A 2bed back then was $650, now its about 12-1500$ in SP.
It was then I bought my first condo for $117,000 in SP.
It is all paid off, so if I had rented I would have no retirement money.
It went up to 400,000 in the boom and now its 275,000$
If I would have continued to rent I would not have equity for retirement.
4 plex are cash cows too.
I own one in Alhambra that a partner and I paid $490,000 in 2005.
It doubled in value and we pulled out our equity , a check of $400,000.
Its now worth about $850,000 w great tenants.
We will cash out again on the next roll over in a few years.
As a kid, we rented on 13th/15th/ & 2nd. st.
I bought a townhouse in Newport Beach in 2001 for $235,000.
It went up to 750,000 in the boom. I had a bad neighbor, but I refused to move, cause I loved it, 2 skylights, 2 fireplaces.
I sold in 2009 for 500,000 & doubled my money.
Rule #1 : Do not get emotionally attached to property.
Rule #2: Bad neighbor is a sign to move!!
Rule #3 The beach will always be there.
Its all about time. And now is a great time to buy.
As Mattucci calls it, the perfect storm w low interest rates.
Call me to invest in property before time runs out & the market changes and that it will.
As my dad once said history always repeats itself every 30 yrs.