More Pricey Sales Become Rentals

By Dave Fratello | October 8th, 2013

It's no big surprise to see investors flocking to Manhattan Beach real estate. But still, the numbers involved in some rentals might surprise you.

We first looked at this sort of issue back in February. In "Buy It, Rent It," we gave a few examples of "investors parking cash, taking out low-rate loans and putting pricey properties out for lease."

Each property we mentioned in that story was sold around $1.9M-$2.0M. Rents being sought ranged from $6,500/mo. to $9,000/mo.

Several recent sales have come right back out as rentals, though not all are examples of investors looking long term. We'll examine a selection below. (In each case, the property address links to the sold property, and we provide a link to the rental, also.)

448 1st St. (4br/4ba, 2825 sq. ft.) is a reasonably large 80s home with a couple of unusual features.

First, it's got just about the biggest backyard in MB – the Robinson school playing fields just beyond the back fence. Also, along one side of the property, a grassy strip of city property gives the illusion of a much bigger lot.

This home just sold for $2.305M in mid-September.

It's now listed for rent at $8,500/mo.

In this case, though, it's not a long-term offering. They're looking to get a tenant through Summer 2014, when, presumably, the new owners are ready to make their move.

Getting pricier...

301 Anderson (4br/3ba, 2900 sq. ft.) is a lovingly remodeled family home with ocean views in the Hill Section. It's custom, with a private yard and a great mix, inside, of modern amenities and classic style.

In something of a bolt from the blue, this one sold off-market in June for $2.610M.

All very well, we figured – it's a gorgeous must-have property, easy to see why someone wanted it.

But it turns out they wanted it to rent out.

This one's now listed for rent at $10,000/mo.

301 2nd (3br/4ba, 2100 sq. ft.) is a South End ocean-view TH that has had the benefit of some modernization since its 1991 construction, but it's not complete.

Still, it was the subject of a notable bidding war, going for $1.930M in July, well over its $1.779M start price. (It's also $300K more than the 2010 sale, as we noted in "How One Townhome Has Fared.")

It's now listed for rent at $11,000/mo. furnished.

Watch for it to be offered as a vacation rental. There is good money in that game, we keep hearing.

3013 Poinsettia (5br/4ba, 3100 sq. ft.) is a home that's a bit of an oddball, as almost anyone walking through could attest.

But its corner lot is on a great block north of Valley, and whatever our concerns about layout, that's a lot of square footage to see these days at the start price they gave it: $1.639M. We figured that they were "pricing in" the need for a buyer to remake the house to a degree.

There was a bidding war and it went nearly $100K higher: $1.730M in September.

But for the foreseeable future, it doesn't look like they'll be tweaking the floorplan or making the exterior less, er, unique.

It's now listed for rent at $8,500/mo.

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