Bought for $9.7M. Sold for $8M. What I Learned From This 17-Year Investment.

Operator Takeaway

What I Learned From This $1.7 Million Loss

What surprises me most is that this house reportedly sold for $9.7 million in 2009 and just sold for $8 million.

That's a $1.7 million loss on the purchase and sale prices, or about 17.5%, over 17 years.

During a period when Los Angeles home prices generally went up, this property sold for substantially less than its reported purchase price.

And that doesn't include 17 years of property taxes, insurance, maintenance, financing, and selling costs.

Now Comes the Repair Bill

The new buyer also faces roof and leak repairs.

Could the repairs cost $500,000? Could they cost $2 million? I have no idea. Until someone properly inspects the property, it's impossible to know.

I may reach out to the broker to see if they need help evaluating the work.

My Take

I've owned real estate long enough to know that buying in a great location doesn't guarantee a good investment.

The price you pay matters. The condition of the property matters. And sometimes holding a property for 17 years doesn't work out the way you expected.

At $8 million, the new buyer may have an opportunity, depending on the repair costs.

What I learned from this sale is simple: Even in one of LA's most desirable neighborhoods, you can hold real estate for 17 years and still sell it at a loss.

The lesson for me is simple: A great location doesn't automatically make a great investment.  

What it could be worth

A 2024 house on North Doheny sold for about $1,452 per square foot. If I use $1,450 here, a fixed house could be worth about $10.75 million. 

Broker Information

Shout out to Benjamin Bacal and Victoria Cronin of Revel Real Estate. They listed the house. Benjamin Bacal also brought the buyer, so he was on both sides of the sale.

What Else Sold

Nearby home sales

Older homes, for lot size (none confirmed as teardowns; prices include the houses)