Tyra Banks is never out of the real estate columns for very long at a spell. Her most recent acquisition is a unique investment opportunity in PacPal that she paid $3.1 million for—that’s about 7% over ask for the home. The savvy businesswoman apparently sees a bit ’o gold hiding in the neglected 1,610 square-footer.

And, as it stands, the house certainly looks to be tailor-made for an express overhaul and quick, profitable flip. The location’s a beaut, and the interiors are only lacking a considerable update to bring them into line with their million-dollar neighborhood.

Looking beyond the battered parquet and the ‘big floral’ c. 1980 kitchen finds a cottage which, treated tastefully, will blossom into a charming haven or near-beach retreat. Stripped of its somewhat claustrophobic compartmental feel, its period wood paneling, and a few non-supporting walls, the house will develop quickly. The living space is waiting to be opened up.

The home’s existing layout packs four bedrooms and only two baths into the square footage; not ideal for a contemporary expression in the leisure-oriented, affluent area. But the location offers splendid views of the ritzy laid-back community, and the ocean beyond, and a full-floor master and a guest room will do admirably.

All of which indicates parlaying a home in need into a tidy profit. But, then, Ms. Banks is familiar with the market in Pacific Palisades. Last year she sold a pair of homes in the city, making about $2.5 million in gross profits.