All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Coronavirus Content & Resources Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Companies Hard Money Lenders Contractors Investment Companies

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
ForumsArrowLos Angeles County Real Estate ForumArrowShould I sell or keep my 2nd home in San Pedro, CA
  • Newest Posts
    • Newest Posts
    • Unanswered Discussions
  • Trending
    • Top Discussions
    • Trending Discussions
  • Browse Forums
Search Nova
Topic: 1031 Exchanges Topic: Akron Real Estate Forum Topic: Alabama Real Estate Q&A Discussion Forum Topic: Alaska Real Estate Q&A Discussion Forum Topic: Alberta Real Estate Forum Topic: Albuquerque Topic: Allentown Real Estate Forum Topic: Anchorage Real Estate Forum Topic: Ann Arbor Topic: Arizona Real Estate Q&A Discussion Forum Topic: Arkansas Real Estate Q&A Discussion Forum Topic: Arlington Real Estate Forum Topic: Asheville NC Real Estate Forum Topic: Ask About A Real Estate Company Topic: Athens Real Estate Forum Topic: Atlanta Real Estate Forum Topic: Aurora Real Estate Forum Topic: Aurora Real Estate Forum Topic: Austin Real Estate Forum Topic: Bakersfield Real Estate Forum Topic: Baltimore Real Estate Forum Topic: Bankers, Lenders, and Mortgage Brokers Topic: Baton Rouge Real Estate Forum Topic: Beaverton Real Estate Forum Topic: BiggerPockets Business Podcast Topic: BiggerPockets Exclusive PRO Area Topic: BiggerPockets Money Podcast Topic: BiggerPockets Real Estate Investing Summit Topic: BiggerPockets Summer Reading List Topic: BiggerPockets Webinar Discussion Forum Topic: Billings Real Estate Forum Topic: Birmingham Real Estate Forum Topic: Bismarck Real Estate Forum Topic: Boise Real Estate Forum Topic: Boston Real Estate Forum Topic: Bridgeport Real Estate Forum Topic: British Columbia Real Estate Forum Topic: BRRRR - Buy, Rehab, Rent, Refinance, Repeat Topic: Buying & Selling Real Estate Discussion Topic: California Real Estate Q&A Discussion Forum Topic: Cambridge Real Estate Forum Topic: Canadian Real Estate Topic: Cape Cod Real Estate Forum Topic: Cape Coral Real Estate Forum Topic: Casper Real Estate Forum Topic: Cedar Rapids Real Estate Forum Topic: Chandler Real Estate Forum Topic: Charleston Real Estate Forum Topic: Charleston Real Estate Forum Topic: Charlotte Real Estate Forum Topic: Chattanooga Real Estate Forum Topic: Chesapeake Real Estate Forum Topic: Cheyenne Real Estate Forum Topic: Chicago Real Estate Forum Topic: Chittenden County Real Estate Forum Topic: Cincinnati Real Estate Forum Topic: Cleveland Real Estate Forum Topic: Coastal NC Real Estate Forum Topic: Colorado Real Estate Q&A Discussion Forum Topic: Colorado Springs Real Estate Forum Topic: Columbia Real Estate Forum Topic: Columbia Real Estate Forum Topic: Columbus Real Estate Forum Topic: Columbus Real Estate Forum Topic: Commercial Real Estate Investing Forum Topic: Completed Deal Diaries Topic: Connecticut Real Estate Q&A Discussion Forum Topic: Construction & Remodeling Diaries Topic: Contractors Topic: Conway Real Estate Forum Topic: Coronavirus Conversation Topic: Coronavirus Government Assistance Programs Topic: Creative Real Estate Financing Forum Topic: Currently Under Contract Topic: Dallas Real Estate Forum Topic: Davenport Real Estate Forum Topic: Dayton Real Estate Forum Topic: Delaware Real Estate Q&A Discussion Forum Topic: Denver Real Estate Forum Topic: Des Moines Real Estate Forum Topic: Detroit Real Estate Forum Topic: Do it Yourself Topic: El Paso Real Estate Forum Topic: Eugene Real Estate Forum Topic: Evansville Real Estate Forum Topic: FAQ Forum Topic: Fargo Topic: Fayetteville Real Estate Forum Topic: First Time Home Buyer Topic: Florida Real Estate Q&A Discussion Forum Topic: Foreigners Buying in the USA Topic: Fort Collins Real Estate Forum Topic: Fort Lauderdale Real Estate Forum Topic: Fort Smith Real Estate Forum Topic: Fort Wayne Real Estate Forum Topic: Fort Worth Real Estate Forum Topic: Fresno Real Estate Forum Topic: General Foreclosure & Pre-Foreclosure Forums Topic: General Landlording & Rental Properties Topic: General Real Estate Investing Topic: Georgia Real Estate Q&A Discussion Forum Topic: Germantown Real Estate Forum Topic: Get Foreclosure Help - Stop Foreclosure Forum Topic: Gilbert Real Estate Forum Topic: Glendale Real Estate Forum Topic: Goals, Business Plans & Entities Topic: Grand Rapids Real Estate Forum Topic: Green Bay Topic: Greensboro Real Estate Forum Topic: Hammond Real Estate Forum Topic: Hartford Real Estate Forum Topic: Hawaii Real Estate Q&A Discussion Forum Topic: Henderson Real Estate Forum Topic: Hialeah Real Estate Forum Topic: Hilo Real Estate Forum Topic: Home Owner Association (HOA) Issues & Problems Forum Topic: Honolulu Real Estate Forum Topic: Housing News & Real Estate Market Discussions Topic: Houston Real Estate Forum Topic: HUD, VA, and Tax Sales Topic: Huntington Real Estate Forum Topic: Huntsville Real Estate Forum Topic: Idaho Falls Real Estate Forum Topic: Idaho Real Estate Q&A Discussion Forum Topic: Illinois Real Estate Q&A Discussion Forum Topic: Indianapolis Real Estate Forum Topic: Indiana Real Estate Q&A Discussion Forum Topic: Innovative Strategies Topic: Interest Rate Drops Topic: International Real Estate Topic: Investor Deal Diaries Topic: Investor Psychology Topic: Iowa Real Estate Q&A Discussion Forum Topic: Jackson Real Estate Forum Topic: Jacksonville Real Estate Forum Topic: Jersey City Real Estate Forum Topic: Job Loss/Company Closings Topic: Joliet Real Estate Forum Topic: Jonesboro Real Estate Forum Topic: Kailua Real Estate Forum Topic: Kānèohe Real Estate Forum Topic: Kansas City Real Estate Forum Topic: Kansas City Real Estate Forum Topic: Kansas Real Estate Q&A Discussion Forum Topic: Kentucky Real Estate Q&A Discussion Forum Topic: Knoxville Real Estate Forum Topic: Lakewood Real Estate Forum Topic: Landlord Problem Solving Topic: Las Cruces Real Estate Forum Topic: Las Vegas Real Estate Forum Topic: Lewiston Real Estate Forum Topic: Lexington-Fayette Real Estate Forum Topic: Lincoln Real Estate Forum Topic: Little Rock Real Estate Forum Topic: Local Real Estate Networking Topic: Long Beach Real Estate Forum Topic: Long Island Real Estate Forum Topic: Los Angeles County Real Estate Forum Topic: Louisiana Real Estate Q&A Discussion Forum Topic: Louisville Real Estate Forum Topic: Madison Real Estate Forum Topic: Maine Real Estate Q&A Discussion Forum Topic: Managing Your Property Topic: Manchester Real Estate Forum Topic: Manitoba Topic: Marketing Your Rental Topic: Marketplace Topic: Maryland Real Estate Q&A Discussion Forum Topic: Massachusetts Real Estate Q&A Discussion Forum Topic: Meads Real Estate Forum Topic: Memphis Real Estate Forum Topic: Meridian Real Estate Forum Topic: Mesa Real Estate Forum Topic: Miami Topic: Michigan Real Estate Q&A Discussion Forum Topic: Military Investing Topic: Milwaukee Real Estate Forum Topic: Minneapolis Real Estate Forum Topic: Minnesota Real Estate Q&A Discussion Forum Topic: Mississippi Real Estate Q&A Discussion Forum Topic: Missoula Real Estate Forum Topic: Missouri Real Estate Q&A Discussion Forum Topic: Mobile (Alabama) Real Estate Forum Topic: Mobile Homes & Mobile Home Park Investing Topic: Modesto/Merced Real Estate Forum Topic: Montana Real Estate Q&A Discussion Forum Topic: Montgomery Real Estate Forum Topic: Mortgage Payment Suspension Topic: Mt. Pleasant Real Estate Forum Topic: Multi-Family and Apartment Investing Forums Topic: Nampa Real Estate Forum Topic: Naperville Real Estate Forum Topic: Nashville Real Estate Forum Topic: Nebraska Real Estate Q&A Discussion Forum Topic: Nevada Real Estate Q&A Discussion Forum Topic: Newark Real Estate Forum Topic: New Brunswick Real Estate Forum Topic: Newfoundland and Labrador Real Estate Forum Topic: New Hampshire Real Estate Q&A Discussion Forum Topic: New Haven Real Estate Forum Topic: New Jersey Real Estate Q&A Discussion Forum Topic: New Member Introductions Topic: New Mexico Real Estate Q&A Discussion Forum Topic: New Orleans Real Estate Forum Topic: New York City Real Estate Forum Topic: New York Real Estate Q&A Discussion Forum Topic: Norfolk Real Estate Forum Topic: North Carolina Real Estate Q&A Discussion Forum Topic: North Dakota Real Estate Q&A Discussion Forum Topic: Northwest Territories Real Estate Forum Topic: Norwalk Real Estate Forum Topic: Nova Scotia Real Estate Forum Topic: Nunavut Real Estate Forum Topic: Oakland Real Estate Forum Topic: Off-Topic Topic: Ogden Topic: Ohio Real Estate Q&A Discussion Forum Topic: Oklahoma City Real Estate Forum Topic: Oklahoma Real Estate Q&A Discussion Forum Topic: Omaha Real Estate Forum Topic: Ontario Real Estate Forum Topic: Orange County Real Estate Forum Topic: Oregon Real Estate Q&A Discussion Forum Topic: Orlando Real Estate Forum Topic: Overland Park Real Estate Forum Topic: Pearl City Real Estate Forum Topic: Pennsylvania Real Estate Q&A Discussion Forum Topic: Peoria Real Estate Forum Topic: Personal Finance Forum Topic: Philadelphia Real Estate Forum Topic: Phoenix Real Estate Forum Topic: Pittsburgh Real Estate Forum Topic: Pocatello Real Estate Forum Topic: Portland Real Estate Forum Topic: Portland Real Estate Forum Topic: Prince Edward Island Real Estate Forum Topic: Private Lending & Conventional Mortgage Advice Topic: Property Insurance Questions & Discussions Topic: Providence Real Estate Forum Topic: Provo Real Estate Forum Topic: Quad Cities Real Estate Forum Topic: Quebec Real Estate Forum Topic: Questions About BiggerPockets and Official Site Announcements Topic: Raleigh Real Estate Forum Topic: Rapid City Real Estate Forum Topic: Real Estate Agent Forums Topic: Real Estate Crowdfunding Forums Topic: Real Estate Deal Analysis and Advice Topic: Real Estate Development & New Home Construction Topic: Real Estate Events and Happenings Topic: Real Estate Guru, Book & Course Reviews and Discussions Topic: Real Estate Investor Marketing Help & Advice Topic: Real Estate News & Current Events Topic: Real Estate Not-So-Successful Stories Topic: Real Estate Quizzes Topic: Real Estate Rookie Podcast Topic: Real Estate Success Stories Topic: Real Estate Technology, Social Media & Blogging Topic: Real Estate Wholesaling Questions & Answers Topic: Rehabbing and House Flipping Topic: Reno Real Estate Forum Topic: Renters Discussion Topic: Rent to Own a.k.a. Lease Purchase, Lease Options Topic: REOs Topic: Rhode Island Real Estate Q&A Discussion Forum Topic: Richmond Real Estate Forum Topic: Rio Grande Valley Real Estate Forum Topic: Riverside Real Estate Forum Topic: Rochester Real Estate Forum Topic: Rockford Real Estate Forum Topic: Sacramento Real Estate Forum Topic: Saint Paul Real Estate Forum Topic: Salem Real Estate Forum Topic: Salt Lake City Real Estate Forum Topic: San Antonio Real Estate Forum Topic: San Diego Real Estate Forum Topic: Sandy Springs Real Estate Forum Topic: San Francisco Real Estate Forum Topic: San Jose Real Estate Forum Topic: San Luis Obispo Real Estate Forum Topic: Santa Fe Real Estate Forum Topic: Saskatchewan Real Estate Forum Topic: Savannah Real Estate Forum Topic: Scottsdale Real Estate Forum Topic: Seattle Real Estate Forum Topic: Short Sales Questions Topic: Short-Term and Vacation Rental Discussion Topic: Shreveport Real Estate Forum Topic: Sioux City Real Estate Forum Topic: Sioux Falls Real Estate Forum Topic: South Bend Real Estate Forum Topic: South Carolina Real Estate Q&A Discussion Forum Topic: South Dakota Real Estate Q&A Discussion Forum Topic: Southeast NC Real Estate Forum Topic: Spokane Real Estate Forum Topic: Springdale Real Estate Forum Topic: Springfield Real Estate Forum Topic: Stamford Real Estate Forum Topic: Starting Out Topic: St. Louis Real Estate Forum Topic: Stockton Real Estate Forum Topic: St. Petersburg Real Estate Forum Topic: STR Strategies Under Travel Restrictions Topic: Surprise Real Estate Forum Topic: Tacoma Real Estate Forum Topic: Tallahassee Real Estate Forum Topic: Tampa Real Estate Forum Topic: Tax, Legal Issues, Contracts, Self-Directed IRA Topic: Tax Liens, Notes, Paper, & Cash Flows Discussion Topic: Tempe Real Estate Forum Topic: Tenant Screening Topic: Tennessee Real Estate Q&A Discussion Forum Topic: Texas Real Estate Q&A Discussion Forum Topic: Thornton Real Estate Forum Topic: Toledo Real Estate Forum Topic: Topeka Real Estate Forum Topic: Tucson Real Estate Forum Topic: Tulsa Real Estate Forum Topic: Tuscaloosa Real Estate Forum Topic: Upstate New York Real Estate Forum Topic: Utah Real Estate Q&A Discussion Forum Topic: Vancouver Real Estate Forum Topic: Vermont Real Estate Q&A Discussion Forum Topic: Virginia Beach Real Estate Forum Topic: Virginia Real Estate Q&A Discussion Forum Topic: Waipahu Real Estate Forum Topic: Waipahu Real Estate Forum Topic: Warren Real Estate Forum Topic: Warwick Real Estate Forum Topic: Washington D.C. Real Estate Q&A Discussion Forum Topic: Washington Real Estate Q&A Discussion Forum Topic: Waterbury Real Estate Forum Topic: Westchester County Real Estate Forum Topic: Western NC Real Estate Forum Topic: West Gulfport Real Estate Forum Topic: West Virginia Real Estate Q&A Discussion Forum Topic: Wichita Real Estate Forum Topic: Wilkes Barre Scranton Real Estate Forum Topic: Wilmington Real Estate Forum Topic: Wisconsin Real Estate Q&A Discussion Forum Topic: Worcester Real Estate Forum Topic: Wyoming Real Estate Q&A Discussion Forum Topic: Yukon Real Estate Forum
Create post

Should I sell or keep my 2nd home in San Pedro, CA

16 Replies

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
user profile avatar
  • Posts 3
  • Votes 0

Samantha Chang

posted about 1 year ago

I bought a house in Point Fermin, San Pedro, CA two years ago as my 2nd home. It's a SFR and around 2500 sf. Now I don't need it anymore. Should I sell or Keep it? If I keep it, should I do long-term rental or airbnb? TIA

Rotate Log in or sign up to reply
user profile avatar
  • Posts 7.0K
  • Votes 4.7K

Theresa Harris

replied about 1 year ago

@Samantha Chang   We need more information.  How much would it rent for (as either short term or long term rental), what are the mortgage, taxes, insurance and other costs associated with using it as a rental?  If you want to use it as a short term rental, do you have people lined up to do the cleaning and check ins and monitor bookings, plus furnish the house?

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Traditional Financing, and Real Estate Finance
  • Posts 1.1K
  • Votes 1.5K

Julie McCoy
Real Estate Agent from Sevierville, Tennessee

replied about 1 year ago

@Samantha Chang San Pedro is a great area that's had so much improvement over the last few years - you're in a good position just having bought when you did.  @Theresa Harris is right that we need more information.  First, what are your financial goals?  It sounds like you don't need immediate access to your equity, so you have flexibility, but knowing your goals (cash flow, using the equity in the house to re-invest in other real estate, or just offsetting its costs in the name of gaining more appreciation) will shape our advice.  Knowing a bit about San Pedro I'm assuming you've got a decent amount of equity in the property already.

Re: STR - see what the local regulations are before you go down this path. Is it permitted? If so, what laws do you need to abide by and how onerous are they? If the house is in a non-sketchy area, San Pedro is really close to a lot of desirable destination points (the port, the marina, Rancho Palos Verdes, weddings at Wayfarer Chapel, etc) and I think you would see good demand for it as an STR. You can look into a local property manager or just manage it yourself - you'll need a reliable cleaner/s and handyman, but with online tools like Takl, TaskRabbit, and TurnoverBNB you'll have good places to get started looking for them.

If you don't want to/aren't able to do STR for whatever reason, LTR may be a good solution - I doubt you'd cash flow, but you could largely offset your costs if you have an interest in keeping the property in order to realize future appreciation. You'll also see the tax benefits of having a real estate investment (you would with a STR as well, of course).

When I was living in LA I had my eye on San Pedro as a real up-and-coming area that's undergone a rapid transformation in the last few years; if I'd bought for an investment in LA, that's probably where I would've gone.  Personally, if I didn't have a need to use whatever equity was already in the property and it wasn't cost-prohibitive to keep, I'd hang on to it for awhile longer, as I expect more appreciation will be coming in the next several years.  

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Real Estate Finance, Team, and Single Family
  • Posts 87
  • Votes 58

Daniel Kim
Rental Property Investor from Garden Grove, CA

replied about 1 year ago

Where you are located and whether or not you can/want to self-manage would make a lot of difference. Do you want to be hands-on (STR and even LTR will require more effort on your part) or just rent out the home and not think about it?

Also was the home was bought in cash or do you carry a mortgage? 

I lived a few years near San Pedro and worked there a year. Although the Point Fermin neighborhood is one of the best neighborhoods of San Pedro it is still LAUSD schools. A family who can afford to rent a (2bed? 3 bed?) 2500 sq ft home is probably want to send their kids to PV, Torrance, etc. schools. Also I just did a search for your size homes for rent on Zillow in the Point Fermin area and nothing came up. San Pedro is kind of a far drive from everything with only one way (the 110) out so you would really need to find renters who work in the area.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 25
  • Votes 10

Dustin Lang
from Irvine, CA

replied about 1 year ago

As others have mentioned, it really depends on your financial goals! Besides the financials, make sure to factor in the opportunity costs of either holding or selling the house. San Pedro is a growing area and the market is at an all time high; if you choose to sell, that’s a large lump sum of cash you can use to invest elsewhere like out of state RE, stocks or bonds (if you’re close to retiring) or do a cash out refinance and rent it. Weight out every possibility and how it aligns with your financial goals. 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 3
  • Votes 0

Samantha Chang

replied about 1 year ago

Hi Dustin, do you have any idea how much I can rent it for? Thank you!

Rotate Log in or sign up to reply
user profile avatar
  • Posts 3
  • Votes 0

Samantha Chang

replied about 1 year ago

Thanks for all the information. My monthly cost for mortgage, insurance, taxes.....are less than $2800. I think I can rent it for $3300-$3500 per month(not quite sure). There won’t be too much cash flow but it’s okay for me. I want to know if it’s worth to keep this property in Pedro. I think if I sell it now I can make $100,000 before taxes. The house has 3 bedrooms and 3 baths with nice ocean/harbor views. Lot is small though. Only 2500 sq. 

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Residential, Taxes & Accounting, and Rentals
  • Posts 15K
  • Votes 9.5K

Will Barnard (Moderator) -
Developer from Santa Clarita, CA

replied about 1 year ago
Originally posted by @Samantha Chang :

Thanks for all the information. My monthly cost for mortgage, insurance, taxes.....are less than $2800. I think I can rent it for $3300-$3500 per month(not quite sure). There won’t be too much cash flow but it’s okay for me. I want to know if it’s worth to keep this property in Pedro. I think if I sell it now I can make $100,000 before taxes. The house has 3 bedrooms and 3 baths with nice ocean/harbor views. Lot is small though. Only 2500 sq. 

Based solely on these numbers, it would be better in my opinion to sell and use that $100k profit to reinvest in another high yield investment (many choices there). With ~$2800 in hard costs and $3500 rent max, you still have repairs, maintenance, vacancies, legal, accounting, property management (even if you self manage, you still need to pay yourself for that as it takes time). If you have $100k in equity already (after resale costs), then you can do a lot more with that than some tiny cash flow.

On the other side of the coin, you should find out how much expected appreciation this home may have as well (no way to know for sure but law of averages for area can help) as this could be a good payday down the road if you add it to the small cash flow years down the road.

 

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Residential, Taxes & Accounting, and Rentals
  • Posts 15K
  • Votes 9.5K

Will Barnard (Moderator) -
Developer from Santa Clarita, CA

replied about 1 year ago

Also, if you can prove you lived there for 2 of the previous 5 years, you can have a nice tax exemption of $250k if you are single, $500k if married and avoid any cap gains on your $100k profit making the argument for selling even higher (based only on the info you provided thus far).

Rotate Log in or sign up to reply
user profile avatar
  • Posts 9
  • Votes 5

Brandon Oldham

replied about 1 year ago

@Samantha Chang with the market booming in the southbay I would consider selling it or pulling out the equity and investing the cash in more popular areas that area fast growing, like Long Beach, Lakewood, or Bellflower. From a rental perspective these home are tend to have a better occupancy rate and they are appreciating at +6% a year. The cost are about $100k more on market but off market you can find some deals around $450k that comp out at $650+. I think it is worth exploring weather you keep it and do a Heloc or sell.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 12
  • Votes 7

Eric Yao

replied about 1 year ago

If you were you, I would hire a broker to look at a couple of reinvestment options, ask the broker to build a simplified spreadsheet model to compare the returns of the three investments (the two new one and the existing). Besides the money, you might also want to consider other valuable things associated with the investments: time, happiness/proud, risks(uncertainty of each of these three deals), etc.. Finally I agree with people here that San Pedro is a dynamic area. Congrats!

Rotate Log in or sign up to reply
user profile avatar
  • Posts 122
  • Votes 68

Jeffrey Almonte
Rental Property Investor from Los Angeles, CA

replied about 1 year ago

@Samantha Chang It really depends on your goals and how much time you are willing to allocate. Will brought up an excellent point about the tax exemption. If you qualify for that, that would push me more towards selling the house while you have the tax exemption still. I agree that there are many other investments out there that will yield you more return with much less effort.

If your goal is to get even deeper into real estate, then another option is to sell the property and purchase a multifamily property. Being in Southern California, the returns will be less than stellar and it would be time consuming. The new California Rent Control Laws will make it more difficult too. But you would gain landlord experience to help you grow your real estate portfolio.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 5
  • Votes 11

Mo Brentwood
from Los Angeles

replied 12 months ago

Absolute best area for short and long term investment if you have enough

capital is San Pedro. Last affordable coastal property in Los Angeles.

over 1Billion dollars worth of construction in or around the water front

is set to begin or be completed in 2020-22. Property that is 500K now

will double in 5 years or less. Urbanize LA Articles on San Pedro

Rotate Log in or sign up to reply
user profile avatar
  • Posts 1.3K
  • Votes 504

Brett Goldsmith
Investor from Los Angeles, California

replied 12 months ago

@Samantha Chang It really depends on how much equity you have, your age, and what your future financial goals are. How much is your mortgage payment? I can give you idea of what the rent would be. Reach out to me if needed. 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 28
  • Votes 16

Maggie W.
Rental Property Investor from Los Angeles, CA

replied 12 months ago

@Samantha Chang as a general rule, property near the coast in California is an asset which I would only sell if I were losing money or in exchange for another piece of California Gold.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 145
  • Votes 45

Robert Chuang
Realtor from Arcadia, CA

replied 12 months ago

@Samantha Chang Instead of saying what you should do. I am gonna offer what I would do in your situation lol if you dont mind.

It depends on your attached/detached garage. I would turn them into ADU/JADU. Let's say one-bed studio rent for $1400. 2-bed rent for $2000. and 3-bed rent for $3000. Cash flowing at $6400/month. Mortgage plus your maintenance and repair lets say 2800+300. You are looking at $3,300 in cash flow. Now depending on the situation and what you want to do...I would use the surplus toward the mortgage itself. To pay off the house asap. Then go after a HELOC while looking for another place to repeat the same. Btw you don't get tax if you cash-out refi or HELOC your house.

This is one way of looking at it, really depends on people's tolerance with being a landlord and what they want to do with their money. After all my experience, I have learned that I don't want to sell any assets I own and I repositioning my strategy toward keeping everything

Rotate Log in or sign up to reply
user profile avatar
  • Posts 278
  • Votes 133

Clarence Johnson
Real Estate Agent from Inglewood, CA

replied 12 months ago

Suggestions to explore building an ADU above would definitely be worth looking into. I love the San Pedro market and believe it will continue to grow in demand as the waterfront development is finished. I would explore the possibility of adding an ADU and holding out for increased equity/cashflow. I sold my sister a duplex in San Pedro a few years ago and she has had massive appreciation, and we have seen the area improving. Making $100k would be great, but to be totally honest if your not taking that money to a different market then it's probably not worth it. You would need $100k to buy a $500k property, multi's in San Pedro are averaging $580-600k right now. Don't sell without a plan, explore all options, and good luck. @Will Barnard had good tax advice above, also if you do not qualify for the owner occupant exemption a 1031 exchange may be an option.

Rotate Log in or sign up to reply
  • 1
Resources Read, see, and learn more!
Link Real Estate Investment Calculators
Link BiggerPockets Blog
Link Path to Purchase
Link Mortgage Loans
Link Find a Contractor
Link Real Estate Agents
Link Hard Money Lenders
Link Real Estate Listings

Top Contributors

Will Barnard
Will Barnard
Santa Clarita, CA
7.38
Score
Mark F.
Mark F.
Bergen County, NJ
5.78
Score
Rick Albert
Rick Albert
Los Angeles, CA
5.14
Score
Sammy Lyon
Sammy Lyon
Los Angeles, CA
4.13
Score
Dan Schweit
Dan Schweit
Santa Clarita, Ca
3.91
Score

Los Angeles County Real Estate Forum Trending Discussions

  • FHA 203k loan experience?
    7 Replies
  • Experience "BRR"ing Primary Residence?
    0 Replies
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.