Jeannie Niles Real Estate Investment
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August 2008 Multi-Family Report
Palm Springs, Desert Hot Springs, Palm Desert, Rancho Mirage, La Quinta and Indio, California
The REO market is now dominating the multi-family segment of the Sales in our area.
August of 2008, a traditionally slow market here because of the summer heat had seven total sales.
Four were REO’s. Two were Short Pays. One was a traditional sale.
By Area:
Four properties were duplexes in Cathedral City. These duplexes sold for well over $400,000 in 2005/2006. They are now going as low as 199,000….a reduction of 55% from the peak of the market.
One property was a new triplex condo project in Palm Springs.
One property was a high end totally renovated four plex in the Tennis Area of Palm Springs.
One property was a duplex in Desert Hot Springs.
The REO properties are sold vacant and require renovation from minor cosmetics to general contractor type of repairs.
I believe the multi-family market will continue to decline until rents begin increasing.
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Income property has once again become “Income property”.
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There are many small income properties available in the area. Prices here have declined over 50% since the peak of the market late 2005/early 2007.
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It’s possible to obtain some great apartment financing. 25% down payment and interest rates at 6% or slightly below.
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Cap Rate is an investment tool for analysis that enables an investor to compare one investment to another.
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Cap Rate is the best tool for determining the value of an income property.
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Some of the most outrageous episodes in property ownership that the owners lived to tell about.
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Only 5% sales agents or brokers actually own investment property, and only 10% actually sell a property.
Every investor's situation is unique, and I have over 25 years experience solving problems. Use the form below to ask me about your unique needs.
Jeannie Niles Real Estate Investment
P.O. Box 317
Palm Desert, CA 92261
P: (760) 360-4020
F: (760) 340-9069
E: jniles@realestate-investment.com
