Some Flips Work, Some Wait

By Dave Fratello | August 26th, 2020

It's a funny time to be a flipper in MB.

Before this year's consequential events, there was reason to think the market might not have a lot more uphill running left to do. A flip might have dicey prospects.

And then COVID.

Of course, the post-shutdown market has been better than expected.

So how are flippers doing now?

1777 Gates Avenue Manhattan Beach CA1777 Gates (3br/2ba, 1770 sqft.) has a new deal, so there's some news.

The boxy 1960s original was acquired for a tiny $1.000M in December last year, then reworked and readied for market in May this year.

Its $1.649M start price was too rich, though. The seller cut $100K, then fired the out-of-area agent and started new with a more local agent, $150K lighter at $1.399M.

It's that listing which has found a buyer just before hitting Day 30 of the second listing (combined, it has 90 CDOM).

That would be a pretty low number for a single-family home in Manhattan Beach.

Important to note: One whole side of the house is along busy, busy Aviation Blvd.

1776 Voorhees Avenue Manhattan Beach CAJust 2 blocks away, also on Aviation, 1776 Voorhees (3br/2ba, 1525 sqft.) closed in May this year for $1.362M.

Also on Aviation.

Also an out-of-area agent.

Also a high start: $1.650M.

By the time it closed, this one had 250 combined DOM across two listings.

And it has to be a flip that flopped. Acquisition was $1.231M, just $131K less than the finished product sold for this year. The flipper almost paid the buyer to move in.

1148 N Poinsettia Avenue Manhattan Beach CAAnd there's 1148 Poinsettia (3br/3ba, 1975 sqft.), in the Tree Section, so at least it's not on Aviation. Poinsettia is, however, relatively busy as a neighborhood street, and the location is quite close to MB Blvd.

This one debuted in February (with an out-of-area agent) at $1.998M and actually made a deal within 2 weeks (good!).

But the COVID-19 shutdown killed the deal (bad) and convinced the seller it was worth more (maybe worse).

Upon falling out of escrow during stay-at-home in late March, the listing raised its price.

Raised its price! In March 2020!

To $2.100M.

If that looked dicey, well, hey, they made another deal within 2 weeks (good!).

But they lost that one, too (bad), and a series of mostly token price cuts ($1,000) and one larger one brought the price to $2.049M, where it's been stuck for 5 weeks, still priced well above its start.

The acquisition on this one was a lot higher than the two East MB homes, $1.625M back in May last year.

There's still a bit of a margin there that perhaps the seller can work with, but it's not going to be buckets of profit coming from this project. Shall we say, it does appear that they economized on the remodel, so perhaps there's more equity there.

But these flips aren't faring nearly as well as a few that we looked at earlier this year:

707 S Redondo Ave Manhattan Beach CA707 S. Redondo (4br/4ba, 2465 sqft.) (pictured), acquired for $1.292M in April 2019, with the updated version selling $5K over asking at $2.180M. Nice margin ($888K before considering any expenses).

1437 23rd (3br/4ba, 2300 sqft.), acquired in April 2018 for $1.599M, sold for $2.500M ($901K before expenses).

2704 Oak (3br/3ba, 2175 sqft.), acquired in Sept. 2017 for $1.500M, sold for $2.230M in February ($730K before expenses).

Please see our blog disclaimer.

Latest Listings Among
Manhattan Beach Homes For Sale