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!!