Oh to have our knowledge and start again at about age 10.
Prices are dropping in my Temecula ‘hood. There was a mini peak in ’09-’10, during which we bought, naturally ($123/sf), but with our upgrades and location, we’ll still take in $750+/mo positive. I can’t complain about that even if the houses around us are going for $10-20k less than we paid, and besides, we’re not the ones who will be paying off the loan. Contrast that with one particular couple we know who bought in Carlsbad in ’08 for $1.6m, while their neighbors are now unable to sell for $1.2m. They’re in no danger of defaulting, but even so it must absolutely sicken them. With that in mind, I have no fear whatsoever of buying rentals in Temecula even at prices 10% higher than they were 3 years ago, because it’s still such good value, and still my number one choice.
My own heartbreak is from selling a family-owned 4-bdrm in a decent area of Escondido about 25 years ago. It had maybe $80k to go on the loan, and at the time the small amount of cash ($15k each) that it netted us kids seemed much more important than any long term benefit. It rents for $1,800+ now. I’m constantly kicking myself for abandoning that cash cow, and the hundreds of thousands it would have made for us. The neighborhood is still nice, too.
