I've heard a lot about San Pedro recently. It has all of the ingredients to be the next highland park. (huge art and music scene, affordable rent, "authenticity" etc...) I've also seen that they are redevoloping their waterfront. So I took a 25 min drive down there from DTLA and was blown away at how nice it was. I mean tons of beautiful parks, 2 beaches, minutes to Palos Verdes. I was shocked at how relatively inexpensive the property was. I did notice some early 90's venice vibes in terms of crime but all in all seems like a solid investment. Anyone else thinking about jumping in the SFR of multifamily game down in San Pedro?
Investor · Manhattan Beach · Member since 2020 · 9 posts · 11 votes
6y
DUDES. Big ups to everyone here for acknowledging THE most under-appreciated real estate market in CA. Also happenned to hear from a little bird that Elon Musk is bringing back the shelved deal to bring SpaceX to San Pedro. This could be bigger than Highland Park. We might be looking at a Highland/Echo Park/Silverlake/Venice mash up baby. I should know. I bought in Venice in the 80's and everyone laughed at me. They didn't laugh when my house sold for over a mil.
Buena Park, CA · Member since 2012 · 1 post · 0 votes
6y
I used to work at a law firm in San Pedro in the early 2000s. During lunch I would always wonder about purchasing investment property there. It was right off the 110, and on the other side of the hill was PV, RPV, PVE. I would ask the partners at my firm why there was such a price difference. They all answered the same thing. Pollution. San Pedro faces the ports and gets the brunt of the pollution for this reason I never really saw the crazy appreciation in San Pedro vs other cities.
Have you actually noticed a lot of pollution living here? I haven't. I feel like a lot of it misses us and ends up in LB. My theory about the difference in price is that most people/potential investors didn't come here. It's not on the way to anywhere, so unless you know someone here, you would never just drive through. If you do get off the freeway, you are not exactly seeing the potential of the city unless you take the time to explore a little. Plus, some of the people are a little different. Very insulated and resistant to change. Born here, work at the port and die here. :-D
Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
6y
@Rachel S.well put. To each it’s on but when automation takes over at the port San Pedro will get hit the hardest. However investors have a good 15 years to try and do something but trust me it’s coming I literally see it everyday.
@Rachel S.well put. To each it’s on but when automation takes over at the port San Pedro will get hit the hardest. However investors have a good 15 years to try and do something but trust me it’s coming I literally see it everyday.
We've already had this conversation and I still disagree with you. Not everyone in San Pedro is a longshoreman, LA has a lot of diversity in employment opportunities and San Pedro is commutable to a lot of places, even if your job doesn't allow you to telecommute. Plus, in recent years it has been much more difficult for casuals to get enough hours to ever get in. Going forward, younger generations are not going to see the port as the golden opportunity that they once did. If they're smart.
The point about people/investors not coming here was past tense. They are watching the city now because of the larger planned development. I even noticed more traffic coming in just from Crafted and Brewery West.
Toyota was a big employer in Torrance. Their packing up and leaving doesn't seem to have caused much death and destruction there.
I used to work at a law firm in San Pedro in the early 2000s. During lunch I would always wonder about purchasing investment property there. It was right off the 110, and on the other side of the hill was PV, RPV, PVE. I would ask the partners at my firm why there was such a price difference. They all answered the same thing. Pollution. San Pedro faces the ports and gets the brunt of the pollution for this reason I never really saw the crazy appreciation in San Pedro vs other cities.
New to Real Estate · Portland, OR · Member since 2019 · 1 post · 1 vote
6y
@Charles Cooper I would love to receive alerts if you're still offering. I am keeping an eye on San Pedro. We are nearly ready to jump into the game, maybe about a year out. I'm mostly interested in small multi's, or something we can potentially house-hack.
Rental Property Investor · Member since 2018 · 826 posts · 810 votes
6y
I like the debate, and tend to agree that San Pedro may have better days ahead. The question that I have is whether we will see gentrification of south-central before we see San Pedro growth. There is massive appreciation in south bay that puts pressure inland.
Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
6y
@Allan C.ok what is the entry point everyone is talking about? Pedro real estate is just as high as everywhere else in Los Angeles. I’m trying to tell everyone I pass by the city everyday it’s not a gold mine as everyone think. I would have been all over the city as in regards to investing. I’ll see how this turns out but in my opinion it’s an overrated investment.
@Allan C.ok what is the entry point everyone is talking about? Pedro real estate is just as high as everywhere else in Los Angeles. I’m trying to tell everyone I pass by the city everyday it’s not a gold mine as everyone think. I would have been all over the city as in regards to investing. I’ll see how this turns out but in my opinion it’s an overrated investment.
Really? San Pedro, Hawthorne and South Central are as high as places like West LA, and other beach cities in the south bay (Manhattan, Hermosa etc, etc)? I think not. I agree that there is no "cheap" real estate in LA, but there are some areas that definitely haven't realized their full potential yet.
I like the debate, and tend to agree that San Pedro may have better days ahead. The question that I have is whether we will see gentrification of south-central before we see San Pedro growth. There is massive appreciation in south bay that puts pressure inland.
I wonder the same thing. I don't know much about south central so I would have to do a lot of research before I would consider investing there at this point. I also feel that when you consider neighborhoods in south central... You also need to consider how easy it would be for people priced out of west LA and downtown to just move into those neighborhoods and integrate during the earlier stages of transition. At this stage I feel like Hawthorne and Inglewood are safer bets, if you want to bet on people being pushed inland from the south bay beach cities. I feel like south central is one to watch and wait.
Real Estate Agent · Inglewood, CA · Member since 2015 · 295 posts · 150 votes
6y
Pedro is in the path of progress, between LB demand, SpaceX interest on terminal island, the waterfront development and the fact that it is one of the least expensive coastal cities in the LA area. I sold my sister a duplex (that her and her family are house hacking) a few years back. Then and now you see Watts duplexes and San Pedro duplexes listed for the same price, I choose Pedro, especially for my sister. I actually showed a client a few Pedro duplexes over the weekend and though they are South Bay natives they looked at Pedro like a hidden gem. This is not to mention the droves of other buyers that were visiting the same properties. @Delbert Standifer I just purchased a SFR in Carson, hoping the mall development and Victoria Park sports complex gives the city a boost. @Allan C. South Central is gentrified, just certain areas, my sister has gained about $200k in equity in her 3 years in Pedro. @Rachel S. good call, I have been suggesting San Pedro, Hawthorne and Gardena as cities in the path of progress the last few years. My clients that are looking in Inglewood and Pedro tend to favor Pedro as the properties in the $700k plus price point are in areas that are further established than the $700k properties in Inglewood. I love Inglewood and it will soon be more walkable and cool than ever, but that's my recent experience.
Pedro is in the path of progress, between LB demand, SpaceX interest on terminal island, the waterfront development and the fact that it is one of the least expensive coastal cities in the LA area. I sold my sister a duplex (that her and her family are house hacking) a few years back. Then and now you see Watts duplexes and San Pedro duplexes listed for the same price, I choose Pedro, especially for my sister. I actually showed a client a few Pedro duplexes over the weekend and though they are South Bay natives they looked at Pedro like a hidden gem. This is not to mention the droves of other buyers that were visiting the same properties. @Delbert Standifer I just purchased a SFR in Carson, hoping the mall development and Victoria Park sports complex gives the city a boost. @Allan C. South Central is gentrified, just certain areas, my sister has gained about $200k in equity in her 3 years in Pedro. @Rachel S. good call, I have been suggesting San Pedro, Hawthorne and Gardena as cities in the path of progress the last few years. My clients that are looking in Inglewood and Pedro tend to favor Pedro as the properties in the $700k plus price point are in areas that are further established than the $700k properties in Inglewood. I love Inglewood and it will soon be more walkable and cool than ever, but that's my recent experience.
SpaceX flaked for the second time in June though. Even so, I think SP is still a great buy and hold for investors. Although, for me, I would not buy an investment property anywhere in LA right now. Too much uncertainty.
Real Estate Agent · Inglewood, CA · Member since 2015 · 295 posts · 150 votes
6y
I didn't know they flaked again lol, maybe they will start building Teslas there lol. If Ca is nice to Uncle Elon I'm sure it will work out, if not they may be building rockets in Texas. Isnt every mkt uncertain, I'm all ears if you suggest somewhere safer.
Pedro is in the path of progress, between LB demand, SpaceX interest on terminal island, the waterfront development and the fact that it is one of the least expensive coastal cities in the LA area. I sold my sister a duplex (that her and her family are house hacking) a few years back. Then and now you see Watts duplexes and San Pedro duplexes listed for the same price, I choose Pedro, especially for my sister. I actually showed a client a few Pedro duplexes over the weekend and though they are South Bay natives they looked at Pedro like a hidden gem. This is not to mention the droves of other buyers that were visiting the same properties. @Delbert Standifer I just purchased a SFR in Carson, hoping the mall development and Victoria Park sports complex gives the city a boost. @Allan C. South Central is gentrified, just certain areas, my sister has gained about $200k in equity in her 3 years in Pedro. @Rachel S. good call, I have been suggesting San Pedro, Hawthorne and Gardena as cities in the path of progress the last few years. My clients that are looking in Inglewood and Pedro tend to favor Pedro as the properties in the $700k plus price point are in areas that are further established than the $700k properties in Inglewood. I love Inglewood and it will soon be more walkable and cool than ever, but that's my recent experience.
SpaceX flaked for the second time in June though. Even so, I think SP is still a great buy and hold for investors. Although, for me, I would not buy an investment property anywhere in LA right now. Too much uncertainty.
I didn't know they flaked again lol, maybe they will start building Teslas there lol. If Ca is nice to Uncle Elon I'm sure it will work out, if not they may be building rockets in Texas. Isnt every mkt uncertain, I'm all ears if you suggest somewhere safer.
I didn't say the absence of SpaceX made San Pedro a less worthy investment. I don't think it does. There is plenty of other development at the port. I am watching carefully. Plus, Musk is fickle so you never know what knee jerk reaction he's going to have next. He's already left TX once too.
When I said "uncertain", I mean the current climate. I would not invest at a time when I cannot evict non paying tenants. Plus I am not seeing any deals. People are pushing prices up artificially because they are seeing the low inventory and engaging in FOMO buying.