Flippin' for $ in Laguna Niguel

It's been a while since we profiled what looks to be a very likely flip attempt in South OC. Nothing against the remaining flippers still trying to operate out there; we didn't forget about them. It's just been hard finding any of their properties lately.

The MLS is a crowded place these days you know...

25332 Via Piedra Blanca, 92677

Asking price: $675,000*

Asking price/ sq ft: $450
Income requirement: $168,750
Purchase price: $560,000
Purchase date: 8/02/2007
Size: 3 beds, 2 baths, 1,500 sq ft (built in 1971)

MLS: R711857 (75 days on Redfin)

ZipRealty price tracker: Price Reduced: 11/08/07 -- $759,900 to $749,000
Price Reduced: 11/20/07 -- $749,000 to $724,900
Price Increased: 12/6/07 -- $724,900 to $750,000
Price Reduced: 12/11/07 -- $750,000 to $695,000
Price Reduced: 1/05/08 -- $695,000 to $675,000
2006 property tax: $2,252
Type: Single Family Residence

Style: Spanish

Stories: One Level
Lot size: 7,840 sq ft
From listing: Compare to new this completely remodeled/redesigned home. All New Maple cabinets Granite counters Travertine Versi floors Mahogany Front doors, Carriage style Garage doors with belt drive opener, New paver drive way and Patio Custom base Boards and door casing, custom paint, New upgraded fixtures etc. no association fees home looks brand new. Valley view from back yard room to add on

What's with the entry way? Notice the...umm...distressed-looking wall to the left of the door? We're assuming the pictures were simply taken during the "complete" remodel/redesign.

Allow me to play Captain Obvious for a moment: Things are not going too well with this property. Assuming this house wasn't purchased for all cash, the potential profit on this place is continuing to shrink as the months (and more importantly the loan payments) tick by.

If Redfin is correct, the owner now has held the property for around five months - probably about two-and-a-half longer than they had hoped. When this property was first listed at $759,900, the potential gain would have been a cool $199,900 before remodeling, holding and sales costs. That would probably have been one heck of a payday.

After some time on the market and four price reductions (plus one price increase!), the potential profit is still unrealized and this property is languishing without a buyer. If we assume a sale at the current high asking price of $675,000 and subtract 6% for sales costs, the profit would be $74,500. Still pretty sweet, but again, this does not take into account money spent fixing up the house and making mortgage/interest payments.

It's hard to estimate just how much money went into fixing this house to ready it for a sale. Considering the amount of work that went into this place, it wouldn't be surprising if the costs were substantial.

The photos are interesting. As you can see, some images with the listing show the property during the renovation.

If I were a real estate agent, I'd wait until everything was done so I could show off how the property turned out - its peak form. Instead it sort of comes off like, "here's how I spent my flip - in pictures."

The bottom photo on the left looks like a security cam screen grab. If you decide to go out and see this house, don't forget to smile just in case! :)

* - Redfin has this one at a price range of $659,000-$675,000