It seemed that not long ago, shortsales and foreclosures were the norm. Those who borrowed badly lost out, but DTLA fans made a killing buying up properties that were oftentimes half of what the previous owners had paid. Now that we're pretty much back at the height, many happy owners are following the old investing adage: buy low and sell high. The really savvy owners are buying low, selling high, and then buying two. Recent client scenario: he sold high, and is using his sizable net profit for downpayments on two properties because borrowing is so cheap right now. He will live in one and rent out the other. And guess what? Because rents are so high, the tenant will end up paying for my client's mortgage, with some extra cash flow to boot. The plan is to hold onto both properties for the next 6-10 years, then sell one off when the value goes up. Seriously, everyone should be doing this.
What about those who didn't buy low? You do the other savvy thing: buy and hold. Then in 6-10 years, when the skyline of downtown has become littered with luxury condos and double the amount of restaurants and retail, then you can sell and upgrade or buy some vacant land to sit on :)
