Interested in how this million dollar house in Encino, CA is going down

[Fernando Corrado]

On my way to work I noticed this 5000+ sf house in Encino, CA  that is all boarded up.  Looked it up on Zillow and it looks from my untrained eye that it:

- Went to auction for somewhere betwen 500 and 800k.
- Sold for 1.1m
- New owner will fix it up for a few hundred thousand
- And possibly sell for 2m?

Any thoughts on my analysis?  Here is the house: http://www.zillow.com/homedetails/5040-Hayvenhurst...

thanks!