Multi-Family Palm Springs Area

Multi-family properties have been the hardest hit segment in the desert area for number of sales during the current real estate downturn.

In July, 13 multi-family properties went into escrow, the largest number in over a year! Of the 13 properties, 11 were REO! The two non foreclosure sales were a high end quality 16 unit building in South Palm Desert and a 5 unit moderate building in Central Palm Springs.

All of the REO sales were older, fixer properties with tenant problems or were vacant. There are some opportunities in this area of the market. Investors need to be prepared to spend some time and money to resolve the problems with the properties however. This can often be lucrative so long as you know what you are doing and what to expect.

There have been a fewer number of foreclosure properties in multi-family because this type of property is mostly “investor owned” which means at least 20% down payment was made when properties were acquired. Owners with equity are less inclined to reduce their prices to compete with REO’s.