$385/sq ft in Laguna

This Laguna Beach property has seen quite a swing in a relatively short amount of time. Right now, it's on the market as a short sale. As you'll see, it's also a bit different than your average single family house...

437 Cypress Dr, 92651
Asking price: $1,929,000
Asking price/ sq ft: $385
Purchase price: $1,740,000
Purchase date: 3/26/07
Size: 10 beds, 8.75 baths, 5,009 sq ft (built in 1937)
MLS: L26112 (429 days on Redfin)
ZipRealty price tracker: Price Reduced: 05/22/08 -- $2,700,000 to $2,695,000
Price Increased: 12/08/08 -- $1,995,000 to $1,999,000
Price Reduced: 05/18/09 -- $1,995,000 to $1,949,000
Price Reduced: 05/27/09 -- $1,949,000 to $1,929,000
Type: Single Family Residence
Style: Cottage, Craftsman
Stories: 2
Lot size: 6,000 Sq. Ft.
From listing: BACK ON THE MARKET AS A SHORT SALE! PRICE REDUCED! North Laguna historic charmer, close to downtown! THE PROPERTY APPRAISED FOR $2,700,000 IN OCT 2007. Short walk to beach, galleries, shops, restaurants, art museum, and movie theatre. Home ideal for owner desiring extra income, or with in-laws or nanny. Main residence has 4 bedrooms(3 upstairs and 1 downstairs)4 baths, office, bonus room. Newly remodeled kitchen: granite counters, Kitchenaid stainless steel appliances, Subzero refrigerator, Thermidor 6 burner professional range & oven. Rare 5 income producing units in the rear: One spacious 2 Bd/1 ba, and 4 studio/1 ba units. Fully occupied. Upper units and main house have ocean views. Partially remodeled. Units have new hardwood floors, kitchens with new appliances, cabinets, and granite countertops. Separate office and community laundry in rear.

As the description states, this is actually an income-producing property (theoretically), along with a larger main house where the landlord could live. If you instead want to simply use this as your own place, you'll first have to honor the existing leases.

The owner tried to make a fast buck in December 2008 by placing the property up for sale for almost $1 million more than they had paid for it in early 2007. Not happening. Now, the asking price has been reduced by 29% and it's a short sale.

Assuming the house can be successfully sold for the current asking price, and we take off 6% for sales costs, there would still be a gain. So, it's safe to assume there is more debt on this property than first meets the eye.