Make $1,000/Day At Home

By Dave Fratello | January 7th, 2015

If someone promises you huge profits for no work, be skeptical.

Unless it's a timely real estate investment in Manhattan Beach.

2305 Bayview Drive Manhattan Beach CAIn another measure of how our local real estate market has rocketed recently, we now see a closed sale that comes in more than $1M above the most recent sale, which occurred just 2 1/2 years ago.

2305 Bayview Drive Manhattan Beach CAIt's 2305 Bayview (3br/4ba, 2570 sq. ft.), a modern remodel of a 2004-built TH. 

The open floorplan on the top level is nice, and it's got a bonus few townhomes offer: A good-sized separate living room downstairs that's been outfitted as a home theater. 

2305 Bayview Drive Manhattan Beach CAThere are ocean views, but really they're the standing-up type.

The home's easy to like. That's probably why in its June 2012 sale, it got bid up a bit, from $2.249M to $2.300M.

But now...

The sellers came out in Nov. 2014 asking $3.399M (+$1.099M/+48% over acquisition).

And they got every dollar of it, in a sale that closed this week: $3.399M.

The comp that makes sense out of this one is a sale we called "ceiling-busting" back in November: 304 27th (4br/4ba, 2700 sq. ft.) – an off-market sale in late October that came in at $3.540M. (See "New High for an MB Townhome.")

304 27th Street Manhattan Beach CAJust take the PPSF from that Mediterranean townhome at 27th (which fronts Highland) and take it to 2305 Bayview, and you're at $3.362M.

So that was basically the (successful) argument for $3.399M.

As we said in our first post about 2305 Bayview, "camping out at 2305 Bayview was an outstanding decision by these sellers for the past couple of years."

We pulled out our calculator here at MBC HQ and ran some quick numbers. Assuming 5% costs of sale, the $3.399M sale price, less the $2.300M acquisition price, over 30 months averages out to gross profit/income of $1,032 per day that the sellers lived in the house.

So see, you really can make $1,000/day by doing nothing. Just buy right and cash out when the wind is blowing perfectly your way.

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