Jeannie Niles Real Estate Investment
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Great Real Estate Buys in 2009
PALM SPRINGS, CATHEDRAL CITY, PALM DESERT, (COACHELLA VALLEY)
It’s unbelievable what multi-family (duplexes, triplexes and four plexes) prices are!
Here’s an example of the type of property I like and recommend to clients.
| Monthly | Annually | ||
|---|---|---|---|
| Rents | 2,100 | 25,200 | |
| Vacancy @5% | 105 | 1,260 | |
| Gross Operating Income | 1,995 | 23,940 | |
| Water and Electric | 50 | 600 | Projected |
| Gardening | 100 | 1,200 | Projected |
| Pool Service | 125 | 1,500 | Projected |
| Repairs and Mainenance | 100 | 1,200 | Projected |
| Insurance | 85 | 1,020 | Projected |
| Property Taxes | 220 | 2640 | Projected |
| Management | 200 | 2394 | 10% of gross rents |
| Total Operating Expenses | 880 | 10,554 | |
| Net Operating Income | 1,116 | 13,386 |
Listing Price: $209,900
A 6% cap rate???? Haven’t seen this since the mid 90’s. I prefer units that have a tile roof, ceramic tile flooring, no older than 1986 and in moderately good condition. I don’t mind doing paint, carpet and cosmetics, but I stay away from structural issues. Too many unknowns!
The attached photos are an actual property available for sale. Great condition, nice size units, strong rental area. Rental range will be from $1050 to $1200 per side.
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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
