March 7, 2008

The Flip Side of Hancock Park

These days, it’s rare that you see someone attempting to “flip” a property — that is, buy a house, fix it up, and sell it at a profit.  That was common in the heady days of 20 percent appreciation per year, but not so much since the market tanked. 

But the owner of this home at 738 S. Highland Ave. is bucking the trend, trying to “flip that house” in this iffy market.  The house was purchased in July 2006 for $990,000.  Nine months later, another sale was recorded, this time for $1,250,000, but that’s probably the owner refinancing and taking money out for the remodel.

The home is now back on the market, with three bedrooms, two baths, 1,864 square feet, and a listing price of $1,595,000.  What are its chances?

Well, it might help if the home were actually in prestigious, desirable Hancock Park, as the listing states.  However, the southern boundary of Hancock Park is Wilshire Boulevard, according to the map at right from the Hancock Park Homeowners Association, so this house, being south of Wilshire, is more accurately Hancock Park adjacent. 

The remodeled home is lovely, to be sure.  The listing description states that the owner has spent $200K on upgrades, including a new kitchen, roof, windows and central A/C.  But, as we know, there’s no guarantee you’ll get back everything you put in. And the comps indicate it might be a tad high for the neighborhood:

716 S. Citrus Ave., Los Angeles
Sold for $1.017,109 on 1/24/08
3BR/2B/2,229 square feet

925 S. Highland Ave., Los Angeles
Sold for $780,000 on 12/4/07
2BR/1B/1,556 square feet

603 S. Mansfield Ave., Los Angeles (in Hancock Park proper)
Sold for $995,000 on 1/2/08
3BR/2B/1,936 square feet