540 Avalon Street, Morro Bay, California 93442, Morro Bay, 93442 - 2 bed, 3 bath
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540 Avalon Street
Morro Bay, California 93442
ACTIVE
CONDITION: EXCELLENT
2Beds
3Baths
907Sq Ft
2,800Lot Size
Property Price
LIST PRICE$779,000
EST. MARKET VALUE
$814,010
4% BelowMARKET VALUE
SUMMARY
This versatile coastal property represents a High-Potential Investment Opportunity, listed at $779,000—positioned well below the $814,011 Fair Market Value by 4%. This valuation gap offers $35,011 in Instant Equity. Featuring a Turnkey Condition Rating with recent renovations, the dual-unit layout includes a Granite Kitchen and a Sunny Upper Deck with ocean views. Located near top-rated schools like Morro Bay High, this property is an ideal acquisition for Buy-and-Hold Investors or Owner-Occupants seeking a flexible, income-generating residence.
Estimated Market Value
$814,010+$35,010 Equity Potential
Based on Realkey algorithm analyzing recent comparable sales in Morro Bay.
Condition Analysis
See Full ReportOVERALL CONDITION SCORE
Excellent
TeardownExcellent
Property is new construction or fully renovated.
While originally built in 1949, the property has undergone a comprehensive recent renovation (likely <5 years) featuring new flooring, paint, windows, and heating systems. The kitchens are updated with new granite countertops and modern appliances, and the interior shows no signs of deferred maintenance, meeting the criteria for a high-quality recent renovation.
PROSSTRENGTHS & OPPORTUNITIES
- Income Potential
The dual-unit configuration with separate entrances and kitchens offers excellent versatility for rental income, investment, or multigenerational living.
- Scenic Coastal Views
A sunny upper deck provides iconic views of Morro Rock, the Stacks, and the Pacific Ocean, which are highly sought-after features in the Morro Bay market.
- Turnkey Condition
Extensive recent updates, including new windows, flooring, granite countertops, and heating systems, provide a move-in-ready experience with reduced immediate capital needs.
CONSRISKS & DEFICIENCIES
- MLS Listing Discrepancy
Living area discrepancy between mls listing and other public or private record. mls listing living area = 907, other record living area = 960.
- Compact Living Area
At just 907 square feet divided between two separate units, the individual living spaces may feel cramped for buyers accustomed to larger residential footprints.
- Limited Lot Size
The 2,800 square foot lot is relatively small, restricting outdoor recreational space and potential for future structural expansion.
About 540 Avalon Street
Enjoy ocean views, Morro Rock, and the iconic Stacks from the sunny upper deck of this versatile Morro Bay property. This recently updated home features an upstairs 1-bedroom, 1-bath residence with a kitchen and views from the living area. The separate downstairs unit offers 1 bedroom, 1 bath, its own kitchen, private entrance, and patio. The downstairs kitchen features new granite countertops and a gas stove. Recent improvements throughout include new flooring, paint, windows, ceiling fans, and heating. Separate laundry area with a full bath conveniently located nearby. A charming detached artist studio/office adds versatility, along with fabulous yard space. Ideal for extended family, multigenerational living, or investment, with the potential to live in one residence and rent the other. A unique coastal property with ocean views, conveniently located near Spencer's, shops, and restaurants!
Property Details
Public Facts
- Property Type
- Single Family Residence
- Year Built
- 1949
- Lot Size
- 2,800 Sq. Ft.
Interior
- Total Bedrooms
- 2
- Total Bathrooms
- 3 (3 Full, 0 Half)
Exterior & Parking
No exterior & parking available.
Utilities & Misc
- HOA Fee
- $0 / Month
Neighborhood Insights
Morro Bay Unified Schools
Del Mar Elementary School
Grades K-5 • 0.7 mi
7/10
Los Osos Middle School
Grades 6-8 • 4.5 mi
7/10
Morro Bay High School
Grades 9-12 • 0.4 mi
7/10
Sensitive Facilities
No sensitive facilities data found.
Neighborhood Comparison
| Feature | Subject | Average Home |
|---|---|---|
| Beds | 2.0 | 2.9 |
| Baths | 3.0 | 2.4 |
| Square foot | 907 | 1,617.875 |
| Lot Size | 2,800 | 3,978.5 |
| Price | $779.0K | $1.02M |
| Price per sq ft | $859 | $625 |
| Built year | 1949 | 1979 |
| HOA | $0 | $135 |
| Days on market | 9 | 62 |
Pricing History
Listed for Sale
Oct 15, 2026
$779,000
Initial Listing
Sold
Jun 21, 2024
$550,000
Public Record
Sold
Dec 19, 2003
$385,000
Public Record
Sold
Jul 21, 2000
$210,000
Public Record
Sold
May 15, 1995
$118,000
Public Record