Santa Monica vs. West LA

[Justin McWilliams]

Hi BP, I'm hoping to get the input of the forum on which would be the best investment. I have had offers accepted on both and have one week to decide. My plan is to live in one of these properties for now but eventually to sell or rent (whichever makes the most sense based on the market). Which do you think makes the better investment?

Option 1: 3BR/2.5BA townhome in Santa Monica, about 1400 sq ft, just S of Montana and about 2 miles inland from the beach. The place was built in the 70s and never had anything done to it. It is a full gut job. There is carpet in the bathrooms, a tiny kitchen that needs to be completely opened up, master bath needs to be completely re-done, probably $100k of work needed (which we will do prior to moving in). it's a middle unit so not super light and bright, but it has a 2-car attached garage and a private entrance. Schools are rated a 10 and it is walking distance to Montana restaurants and shops. Price is $955k and HOA is about $400/month.

Option 2: 3BR/3.5BA detached home in West LA/Sawtelle between Santa Monica and Olympic, 1950 sq ft. Built 10 years ago and no expense spared, it's a beautiful place with lots of amazing design features. It is one of two homes on an R2 lot so no real yard, but it has a beautiful spacious roof deck. Expansive master suite with lots of light and breezes. High-end everywhere. It is walkable to the Sawtelle Japantown neighborhood. Schools though are about a 4 (LAUSD) and it is by far the nicest house on the block, though that is changing as developers swoop in and tear down. Price is $1.35mil and no HOA.

Appreciate any input- really torn on what to do here. Thanks!

Justin