[quote=FlyerInHi]BG, turnover is comme ci, comme ca. Some evictions, some section 8, some good tenants. There are hassles, but considering his cost basis, he will recoup his investment in less than 10 years and then the cash flow is safer than any pension promise.
I hate the area but there is a lake and plenty of jobs and industry. Lots of Hispanics who, I was told, are better tenants than low-class whites and blacks (who know the system better and milk it).
Sometimes you’re full of it, BG. There are benefits to the suburbs in comparison to the old run down-sections of LA. You have to be objective and look at real estate detached from your own lifestyle.[/quote]
I actually live in a (close-in) suburb, FIH. But Moreno Valley is one of the furthest-away exurbs from LA County’s work centers. It’s prices are what they are for a reason. It became severely overbuilt in the early 2000’s, with its subdivisions losing 60-85% of their value by 2007-8.
There was a very good reason for that.
Downey and Montebello likely didn’t lose any value at all during the downtown … or if they did, it was only a short blip on the radar screen.
There is a very good reason for this, as well.
All three of these areas have similar “demographics,” except the homeowning cohort in the LA County cities is more well-established and thus “stable.”
The best any homeowner can ever hope for is “stability” within their own neighborhood.
Without it, wildly plummeting property values within them are one of the direct causes of real and strategic default when homeowners wake up one by one and realize they really never “owned” anything.
I for one wouldn’t want my home’s value to be completely dependent upon the whims of a highly-transient surrounding-resident population, but that’s just me.
For the same reasons, I don’t like the Las Vegas, NV market (even though it is much closer to jobs).
Your “friend” likely bought all of his MV houses for a song in recent years (not taking into acct at least 20 yrs of pesky MR left on most or all of them) but their fundamentals remain the same. They are where they are and thus attract the tenants they attract.
