Flip out in Laguna

Today's property is proof people are trying to make a killing buying and then reselling homes in Laguna Beach's Three Arch Bay. Will the $1.7 million investment pay off?

3 S Portola, 92651
Asking price: $2,149,000
Asking price/ sq ft: $1,194
Purchase price: $1,700,100
Purchase date: 5/13/08
Size: 3 beds, 2 baths, 1,800 sq ft (built in 1945)
MLS: S561062 (5 days on Redfin)
HOA dues: $170
Type: Single Family Residence
Style: Other
Stories: 1
Lot size: 6,240 Sq. Ft.
From listing: Single level in private Three Arch Bay! Enter the spacious living room to find hardwood floors and a cozy fireplace. New paint and refinished hardwood floors. Upgraded kitchen with stainless steel appliances and the center island features smooth granite counters. Charming breakfast nook with french doors. Niche features a built-in desk. Grassy front yard, shuffle board in backyard.

Not sure why there are only 2 pictures to go along with a $2 million-plus listing. Really not sure why the second is a grainy cell phone pic.

To be fair, it's not for certain this was a planned flip, considering Redfin says the home last sold in May 2008 - that's a really long time between previous sale and flip. Perhaps the owner meant to live here long term, and extenuating circumstances are forcing them to sell. They just happened to think the house has appreciated 26% since last year, after their upgrades are taken into account.

We do know the current owner appears to have gotten a very good deal on this property - 2003 rollbacks in Laguna are very rare right now unless they're foreclosures or short sales.

Assuming a sale for the full asking price, and we subtract 6% for sales costs, the potential profit is $319,960, before subtracting for upgrades and other expenses.