The Los Angeles housing market is full of flips—a person can make a nice profit putting a formerly distressed property up for sale, or, in this case, an 11,200-square-foot monster of a spec house in Beverly Hills. Just over a year and a half after being sold for $31 million, a megamansion at 1201 Laurel Way is back on the market, listed for $42 million. It's a bit of an infamous house too, with a history chock full of borderline illegal permitting and neighborhood lawsuits.
Back in 2006, then-owner Papcap Laurel Way LLC (Richard Papalian) wanted to tear down a 4,318-square-foot, one-story house that had been on this lot since 1957, in order to build an elaborate spec house. Papalian informally queried the neighbors' on the project and found they were quite against it. Fearing that the city wouldn't grant him a demolition permit if angry neighbors showed up at the public hearing, Papalian instead applied for a much less strict remodel permit. The city allowed Papalian to tear down 50 percent of the original house for a "remodel," but he just went ahead and tore down 90 percent instead.