Example of how much some L.A homes have gone up since 'crash' (Los Angeles: for sale, low crime)

[jm1982]

I had looked at this tiny house for sale in the silverlake/echo park area (90026 zip)
back in 2009
I had favorited it on Redfin and just got an email that it sold for $635,000

https://www.redfin.com/CA/Los-Angele...6/home/7051638

It sold for $179,000 ,sure it's been some years..but that's like 3.5x more.
Plus if one was able to get some kind of financing the return would be even higher.

The listing is written weird/quirky..but I guess it worked because they got like $40,000 over asking price.

It wasn't even on a nice street or anything, barely any lot size, and I think there was an apt building right next door..but because it's in a hipster area, people will pay a huge amount per square foot.

[LuvSouthOC]

Originally Posted by jm1982

I had looked at this tiny house for sale in the silverlake/echo park area (90026 zip)
back in 2009
I had favorited it on Redfin and just got an email that it sold for $635,000

https://www.redfin.com/CA/Los-Angele...6/home/7051638

It sold for $179,000 ,sure it's been some years..but that's like 3.5x more.
Plus if one was able to get some kind of financing the return would be even higher.

The listing is written weird/quirky..but I guess it worked because they got like $40,000 over asking price.

It wasn't even on a nice street or anything, barely any lot size, and I think there was an apt building right next door..but because it's in a hipster area, people will pay a huge amount per square foot.

That little house had some charm though. Not feeling the fence and particle board in back. 640 huh...for that upgraded shack... 200 more and you can live in a nice much bigger SFR in OC. I guess OC is dirt cheap compared to Silver Lake.

[socal88]

Unbelievable someone would pay $663/sq. ft. for a place that is right up against the 101 freeway in the dumpiest part of Silver Lake. Makes absolutely zero sense unless someone has some extra cash and is making speculative bets with no intention to live there.

I give kudos to whoever spruced the placed up and found a sucker to overpay so they can hear freeway noise and breathe in toxic fumes.

[jm1982]

Originally Posted by LuvSouthOC

That little house had some charm though. Not feeling the fence and particle board in back. 640 huh...for that upgraded shack... 200 more and you can live in a nice much bigger SFR in OC. I guess OC is dirt cheap compared to Silver Lake.

Yeah the prices of these small little shacks are pretty nuts.
I haven't been through that street recently, but it seemed pretty run down..but maybe that just adds to the 'hipster charm'.

[jm1982]

Originally Posted by socal88

Unbelievable someone would pay $663/sq. ft. for a place that is right up against the 101 freeway in the dumpiest part of Silver Lake. Makes absolutely zero sense unless someone has some extra cash and is making speculative bets with no intention to live there.

I give kudos to whoever spruced the placed up and found a sucker to overpay so they can hear freeway noise and breathe in toxic fumes.

Yeah but the time to make the speculative bet would of been back when prices were low.
The 'bottom' price in L.A in general is so high that it doesn't make it too attractive for investment.
It seems worth looking at gentrifying areas in other cities and states for opportunity that have more upside.

I mean it's possible it could go up more..but is that the best use of money?

In the valley you can find a 'real house' (decent size with yard) in decent areas (low crime , houses kept up ,etc) for less.

You could still have money left over to even take Uber over to Echo Park or Silverlake to hang out whenever you want and still come out ahead.

[Joe Van Fossen]

Back in 2009 the house sold for $333K. It sold at $180K as an REO to an investor in late 2008. The price per sf of the current sale is actually $709 ($663 is based on the redfin estimate price), but that's actually on the low side for this neighborhood:

https://www.redfin.com/CA/Los-Angele...6/home/7051664

[Mr_Geek]

That listing was a bit too hip for me.

[jm1982]

"3405 Plata looked me in the eye and said, "Ain't nobody dope as me. I'm dressed so fresh, so clean (So fresh and so clean clean). " Then Plata put its arm around me and said, "You see, some people might call me a Silver Lake Bungalow, but not me. I'm a Silver Lake BANG-ALOW! Because I got so much going on, it's like BANG! Look at my floors! Makes you want to strap on your roller skates, put in that 8-track and glide through my two bedrooms with en suite bathrooms, into my impeccable kitchen and outside into my outdoor space with drought tolerant landscaping. Then find your path on my climbing wall and once you've worked up a sweat, we can hit my studio, step into the vocal booth and sing the song that makes the whole world sing. Whatever you want to do, I'm here for you! Got an electric car? I got a 2 EV Car Charger. Want to stay cool? My mini ductless HVAC system keeps you ice-cold. Looking for a home to love? Well, you're looking for me. I'm 3405 Plata. Can't wait to meet you. "

I think I threw up a little bit while reading it..

[West of Encino]

I predicted in 2008 that Los Angeles would be a home only available for the rich and upper middle class.

[ryanms3030]

my favorite pastime is to look at Redfin and see what that $600k would get me in someplace like MI? How about a 3000 sq foot house on 5 acres?

https://www.redfin.com/MI/Canton/508.../home/59326127