How and When Did You know?

[NotCranky]

“sell it for more than six times what I bought it for less than than 10 years prior

Where was this house? Is “Pimp Daddy” still around? ”

bsrsharma
The house was in Normal Heights. I missed the peak and I was a motivated seller :). At least one smaller shabbier house sold for more and mine was the low price leader or pretty nearly so, on ppsf for at least a year on both sides of the sale. Didn’t want to get greedy.

I typed a very long response as to why this happened and not only to me but to some of the other properties. I lost it on account of a faulty key stroke somewhere, sorry.Basically it was a convergence of the bubble, gentrification of this specific area and some houses benefitting greatly from infrastructure, businesses and housing stock improvements(tear downs, condo conversions and rehabs).

I googled “Pimp Daddy Limousines” I find a company but I don’t think the neighborhood “Pimp Daddy” had anything to do with it. The house he rented has sold and I have no idea where he is.

[Anonymous]

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[4plexowner]

2002 – the numbers stopped working to purchase the 2 to 4 unit properties I was focussed on – from 2000 to 2002 rents were rising so it was possible to believe that rents would eventually cover the negative cash flow from a property purchased during that timeframe (and/or the monthly expense could be covered easily from other income sources like a job)

in 2002 it was no longer possible (for me anyway) to pretend that buying multi-unit property made any sense – I began researching economics, investing and financial manias at that point – as it dawned on me that I was speculating in the local market and NOT investing, I began selling my property

(in simple terms, if you are writing a check every month to support your ‘investment’, or you won’t actually ever own your ‘investment’ because you aren’t paying down principle, you might want to research the difference between investing and speculating)

the ‘crash’ that I have been expecting since 2002 arrived in the summer of 2007 with the two Bear Sterns hedge funds blowing up – unfortunately for us these funds were just the tip of the iceberg – we have been seeing more and more of the ‘berg over the last six months with investment banks writing off billions in losses – I believe the bulk of the iceberg is still being hidden below the waterlines in the form of $500-700 trillion of derivative paper that isn’t worth what the book-keeping ledgers say it is worth – the bailout of the monoline insurers is an attempt to keep the iceberg from rising higher out of the water – many more bailouts are coming our way

[4plexowner]

2002 – the numbers stopped working to purchase the 2 to 4 unit properties I was focussed on – from 2000 to 2002 rents were rising so it was possible to believe that rents would eventually cover the negative cash flow from a property purchased during that timeframe (and/or the monthly expense could be covered easily from other income sources like a job)

in 2002 it was no longer possible (for me anyway) to pretend that buying multi-unit property made any sense – I began researching economics, investing and financial manias at that point – as it dawned on me that I was speculating in the local market and NOT investing, I began selling my property

(in simple terms, if you are writing a check every month to support your ‘investment’, or you won’t actually ever own your ‘investment’ because you aren’t paying down principle, you might want to research the difference between investing and speculating)

the ‘crash’ that I have been expecting since 2002 arrived in the summer of 2007 with the two Bear Sterns hedge funds blowing up – unfortunately for us these funds were just the tip of the iceberg – we have been seeing more and more of the ‘berg over the last six months with investment banks writing off billions in losses – I believe the bulk of the iceberg is still being hidden below the waterlines in the form of $500-700 trillion of derivative paper that isn’t worth what the book-keeping ledgers say it is worth – the bailout of the monoline insurers is an attempt to keep the iceberg from rising higher out of the water – many more bailouts are coming our way

[4plexowner]

2002 – the numbers stopped working to purchase the 2 to 4 unit properties I was focussed on – from 2000 to 2002 rents were rising so it was possible to believe that rents would eventually cover the negative cash flow from a property purchased during that timeframe (and/or the monthly expense could be covered easily from other income sources like a job)

in 2002 it was no longer possible (for me anyway) to pretend that buying multi-unit property made any sense – I began researching economics, investing and financial manias at that point – as it dawned on me that I was speculating in the local market and NOT investing, I began selling my property

(in simple terms, if you are writing a check every month to support your ‘investment’, or you won’t actually ever own your ‘investment’ because you aren’t paying down principle, you might want to research the difference between investing and speculating)

the ‘crash’ that I have been expecting since 2002 arrived in the summer of 2007 with the two Bear Sterns hedge funds blowing up – unfortunately for us these funds were just the tip of the iceberg – we have been seeing more and more of the ‘berg over the last six months with investment banks writing off billions in losses – I believe the bulk of the iceberg is still being hidden below the waterlines in the form of $500-700 trillion of derivative paper that isn’t worth what the book-keeping ledgers say it is worth – the bailout of the monoline insurers is an attempt to keep the iceberg from rising higher out of the water – many more bailouts are coming our way

[4plexowner]

2002 – the numbers stopped working to purchase the 2 to 4 unit properties I was focussed on – from 2000 to 2002 rents were rising so it was possible to believe that rents would eventually cover the negative cash flow from a property purchased during that timeframe (and/or the monthly expense could be covered easily from other income sources like a job)

in 2002 it was no longer possible (for me anyway) to pretend that buying multi-unit property made any sense – I began researching economics, investing and financial manias at that point – as it dawned on me that I was speculating in the local market and NOT investing, I began selling my property

(in simple terms, if you are writing a check every month to support your ‘investment’, or you won’t actually ever own your ‘investment’ because you aren’t paying down principle, you might want to research the difference between investing and speculating)

the ‘crash’ that I have been expecting since 2002 arrived in the summer of 2007 with the two Bear Sterns hedge funds blowing up – unfortunately for us these funds were just the tip of the iceberg – we have been seeing more and more of the ‘berg over the last six months with investment banks writing off billions in losses – I believe the bulk of the iceberg is still being hidden below the waterlines in the form of $500-700 trillion of derivative paper that isn’t worth what the book-keeping ledgers say it is worth – the bailout of the monoline insurers is an attempt to keep the iceberg from rising higher out of the water – many more bailouts are coming our way

[4plexowner]

2002 – the numbers stopped working to purchase the 2 to 4 unit properties I was focussed on – from 2000 to 2002 rents were rising so it was possible to believe that rents would eventually cover the negative cash flow from a property purchased during that timeframe (and/or the monthly expense could be covered easily from other income sources like a job)

in 2002 it was no longer possible (for me anyway) to pretend that buying multi-unit property made any sense – I began researching economics, investing and financial manias at that point – as it dawned on me that I was speculating in the local market and NOT investing, I began selling my property

(in simple terms, if you are writing a check every month to support your ‘investment’, or you won’t actually ever own your ‘investment’ because you aren’t paying down principle, you might want to research the difference between investing and speculating)

the ‘crash’ that I have been expecting since 2002 arrived in the summer of 2007 with the two Bear Sterns hedge funds blowing up – unfortunately for us these funds were just the tip of the iceberg – we have been seeing more and more of the ‘berg over the last six months with investment banks writing off billions in losses – I believe the bulk of the iceberg is still being hidden below the waterlines in the form of $500-700 trillion of derivative paper that isn’t worth what the book-keeping ledgers say it is worth – the bailout of the monoline insurers is an attempt to keep the iceberg from rising higher out of the water – many more bailouts are coming our way

[Anonymous]

Beginning of 2002. I was getting the family house ready to go on the market and the realtor’s estimate of what the listing price should be was changing week to week. First it was $275k. Two weeks later, after $2k of hardwood floor refinishing, it was suggested we list at $300k. Then a week after that as we went to list, he suggested we try for $325k. House sold in one weekend for $25k above asking. Crazy. And this was a 1300 sq ft 1920’s house with NO updates since the 60’s except copper plumbing and a new roof at some point. We needed to buy a larger home immediately (needed to get my father out of an assisted living facility) and bought a brand new 2700 sq ft $265k house in Temecula. By early 2004, the builder was selling our model for $425k and we knew that was just ridiculous for a house in the middle of nowhere (French Valley). We put the house on the market, sold in a week for asking at $435k and sat on the cash for a few years. If you want to know how the story ends, we are now in a perfectly nice 1981 2800 sq ft house with a pool in North Dallas which was $240k.I am so happy to be out of the madness. I love San Diego and may come back and live in a tiny apartment as an old lady, but living in Dallas and visiting San Diego certainly has been the smart thing for my family’s monetary situation.

[Anonymous]

Beginning of 2002. I was getting the family house ready to go on the market and the realtor’s estimate of what the listing price should be was changing week to week. First it was $275k. Two weeks later, after $2k of hardwood floor refinishing, it was suggested we list at $300k. Then a week after that as we went to list, he suggested we try for $325k. House sold in one weekend for $25k above asking. Crazy. And this was a 1300 sq ft 1920’s house with NO updates since the 60’s except copper plumbing and a new roof at some point. We needed to buy a larger home immediately (needed to get my father out of an assisted living facility) and bought a brand new 2700 sq ft $265k house in Temecula. By early 2004, the builder was selling our model for $425k and we knew that was just ridiculous for a house in the middle of nowhere (French Valley). We put the house on the market, sold in a week for asking at $435k and sat on the cash for a few years. If you want to know how the story ends, we are now in a perfectly nice 1981 2800 sq ft house with a pool in North Dallas which was $240k.I am so happy to be out of the madness. I love San Diego and may come back and live in a tiny apartment as an old lady, but living in Dallas and visiting San Diego certainly has been the smart thing for my family’s monetary situation.

[Anonymous]

Beginning of 2002. I was getting the family house ready to go on the market and the realtor’s estimate of what the listing price should be was changing week to week. First it was $275k. Two weeks later, after $2k of hardwood floor refinishing, it was suggested we list at $300k. Then a week after that as we went to list, he suggested we try for $325k. House sold in one weekend for $25k above asking. Crazy. And this was a 1300 sq ft 1920’s house with NO updates since the 60’s except copper plumbing and a new roof at some point. We needed to buy a larger home immediately (needed to get my father out of an assisted living facility) and bought a brand new 2700 sq ft $265k house in Temecula. By early 2004, the builder was selling our model for $425k and we knew that was just ridiculous for a house in the middle of nowhere (French Valley). We put the house on the market, sold in a week for asking at $435k and sat on the cash for a few years. If you want to know how the story ends, we are now in a perfectly nice 1981 2800 sq ft house with a pool in North Dallas which was $240k.I am so happy to be out of the madness. I love San Diego and may come back and live in a tiny apartment as an old lady, but living in Dallas and visiting San Diego certainly has been the smart thing for my family’s monetary situation.

[Anonymous]

Beginning of 2002. I was getting the family house ready to go on the market and the realtor’s estimate of what the listing price should be was changing week to week. First it was $275k. Two weeks later, after $2k of hardwood floor refinishing, it was suggested we list at $300k. Then a week after that as we went to list, he suggested we try for $325k. House sold in one weekend for $25k above asking. Crazy. And this was a 1300 sq ft 1920’s house with NO updates since the 60’s except copper plumbing and a new roof at some point. We needed to buy a larger home immediately (needed to get my father out of an assisted living facility) and bought a brand new 2700 sq ft $265k house in Temecula. By early 2004, the builder was selling our model for $425k and we knew that was just ridiculous for a house in the middle of nowhere (French Valley). We put the house on the market, sold in a week for asking at $435k and sat on the cash for a few years. If you want to know how the story ends, we are now in a perfectly nice 1981 2800 sq ft house with a pool in North Dallas which was $240k.I am so happy to be out of the madness. I love San Diego and may come back and live in a tiny apartment as an old lady, but living in Dallas and visiting San Diego certainly has been the smart thing for my family’s monetary situation.

[Author]

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