Why Sell When You Can Rent?

By Dave Fratello | September 16th, 2008
The slow pace of sales is prompting some MB sellers to offer homes simultaneously for rental and for sale.

A few are even new homes that clearly were never meant for the rental market. There are 3 active SFR listings west of Sepulveda meeting that description, and 4 more newbies that we're aware of that have already gone rental in recent months. You gotta do what you gotta do.

As always, click any highlighted address for more pics & info via Redfin.

New Homes Offered for Sale & Rent

815 2nd (pictured) – a large (5br/6ba, 4550 sq. ft.) new home with ocean views and some delightful little rooms, good finishes. Started at $4.799m in February, now at $4.275m and offered for rent at $15,000/mo. (Also the subject of an MBC pricing poll – results story here.)

332 20th – a plush and gorgeous, large new home (5br/5ba, 4200 sq. ft.) up near the top of the 20th St. walkstreet. It's got class and huge ocean views. Began at $4.795m in January 2008, cut a bit, went dark (we think it was rented for the Summer) and has now returned to the market at $4.154m and offered for rent at $15,000/mo.

4419 Highland – the "Gateway to Manhattan Beach" began last year at $1.695m and drew no interest. Has been priced at $1.265m for a few months. Rental rate is down from $6,500/mo. to $5,800/mo.

Other Active Listings for Sale & Rent

923 1st – the strange, huge ocean-view home we've mentioned several times (see "Unpredictable" for our walk-through review) began at $7.995m and has been priced as low at $7.150m. With a new agent, it's priced now at $7.350m and offered for rent at $18,500/mo. (was as high as $22,500/mo.).

114 N. Poinsettia – a new "Andalucian" home built in 2007 and offered first at $7.750m in May 2008, recently canceled and re-listed at $6.995m. Offered for rent at $16,500/mo.

717 10th – since this large, modern home hit the market in July, it's been priced at $3.850m and also offered for rent, furnished, for $14,000/mo.

312 20th – this sizable (5br/5ba, 4100 sq. ft.), 10-year-old beauty just hit the market at $3.599m and is offered, at the same time, for rent at $11,500/mo.

3210 N. Ardmore (pictured) – just like the previous two on this list, this good-sized home (5br/4ba, 3500 sq. ft.) hit the market simultaneously for rent and sale – buy for $1.999m or rent for $7,500/mo.

612 11th – this home on an odd "flag lot" recently returned to the market after, apparently, a failed escrow. Offered at $1.199m and for rent at $4,500/mo. (short term). That list price, by the way, is $76k below the price the current owner paid in a bidding war last year. (See "Maybe They Lost the War.")

We would also note that an off-and-on listing spanning the past 2 years is 3200 Pacific, a fairly giant (double-wide) and imposing home, is off the market now but offered for rent at $7,900/mo. The initial, stratospheric price was $3.9m and the last price we saw this year was $3.199m in early 2008.

Homes That Rented Instead of Selling

769 33rd (pictured) – a new home first offered, pre-completion, at $4.5m; later cut to $3.950m. The 6br/4ba, 5000 sq. ft. home is on a nearly double-wide lot (7800 sq. ft.) and features an 1100-sq.-ft. master suite. It vanished, unsold, from the MLS, and appears to be rented out. (Not confirmed.)

3305 Laurel – was built by the same builder as 769 33rd, the home next door, and lingered more than 300 days. (Laurel was on the market before 33rd was completed.) It began at $3.75m and slowly cut to to $3.29m before going rental – our information is that the rate was $8,500/mo. For what it's worth, this home was featured in a pricing poll of sorts by Curbed LA (see MBC's story: "LA Doesn't Know MB," which asks who really knows the value of MB new construction – locals or out-of-towners).

3413 Pacific – this was a new home that never hit the MLS but was offered for rent at $9,500/mo. No recent sale has posted. Given the location in clear view of the refinery, we inferred that the builder knew it would have a very hard time selling.

1144 Elm – a new home we first featured in November 2007 because it was the first new home in the Trees we had seen start below $2m in quite a while. (See "First Newbie Under $2m.") It was last at $1.879m but quit in April 2008; we assume to go rental, since no sale has posted.

1308 Elm – this was "Cutie," a little cottage with some bonus space that hit the market at $1.199m and prompted the question from MBC: "How Fast Will Cutie Go?" Turns out, it went quickly (18 days) – as a rental, at a reported $4,500/mo. (See "Cutie's Gone, Not Sold.")

A Recently Sold Home Now Up for Rent

This doesn't speak to the market one way or the other, but it caught our attention nonetheless.

117 7th – is a Strand-adjacent, newer, 2br/3ba, 2350 sq. ft. home that was a minor sensation when it hit the market in late June. They wanted $4m and got $4.325m after multiple bids. Turns out you don't have to pay that mortgage – just rent of $11,900/mo.


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