Another Short Hold and Profit

By Dave Fratello | October 29th, 2014

We're not always going to be in a market where reselling shortly after buying a house will get you out whole.

It's not always like that.

But in a rising market, people keep pulling it off.

The little remodel at 3612 Poinsettia (2b1/1ba, 865 sq. ft.) was purchased only last year for $935K (June 2013).

The resale now: $1.170M.

Neither is a big number for Manhattan Beach real estate, but the net jump in market value is 25% year-over-year. We'd guess that the sellers walked away with $180K (pre-tax).

This year was different for the property. It ran just 3 weeks before a buyer knocked.

Last year, the same house in the same condition had accumulated nearly 100 DOM before someone wrote an offer.

The notion of profit from a sale on this little, largely original home near Rosecrans is also new.

The sellers last year probably didn't make much money on the deal.

They had acquired the home 5 years earlier (July 2008) in rental-caliber condition for $849K.

They're the ones who put in the work to gussy up the kitchen and baths, ripped up the carpet and restored the hardwood floors. But when they resold for $935K, we'd hazard that they just about broke even, given the costs of the remodel and the costs of sale.

Had they held on for a year, they'd have been positioned for a nice windfall.

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