Jeannie Niles Real Estate Investment
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April 2009 Multi-Family Report
PALM DESERT,CATHEDRAL CITY, DESERT HOT SPRINGS, COACHELLA VALLEY
A total of eighteen multi-family properties went into escrow in April, 2009.
| City | Type | # of Properties |
|---|---|---|
| Bermuda Dunes | Regular Seller | 1 |
| Indio | REO | 1 |
| Palm Desert | Short Pay | 1 |
| Palm Springs | Regular Seller | 1 |
| REO | 1 | |
| Desert Hot Springs | REO | 7 |
| Cathedral City | REO | 6 |
| IN ESCROW | Asking Price | Age | # of Units |
|---|---|---|---|
| 79741 Avenue 42, BD | 395,000 | 1987 | 3 |
| 82412 Valencia, Indio | 114,900 | 1940 | 3 |
| 74070 Chicory, Palm Desert | 226,700 | 1963 | 2 |
| 920 E. Cottonwood PS | 199,900 | 1950 | 4 |
| 514 E. Calle Roca, PS | 302,000 | 1937 | 3 |
| 68070 Hermosillio, CC | 127,900 | 1961 | 2 |
| 68725 33rd St. CC | 160,000 | 1987 | 2 |
| 33750 Sky Blue Water, CC | 209,900 | 1989 | 2 |
| 33225 Wishing Well, CC | 149,900 | 1985 | 2 |
| 33950 Via De Anza, CC | 229,900 | 1986 | 3 |
| 32300 Navajo Trl, CC | 284,900 | 1991 | 3 |
| 66462 Flora, DHS | 39,900 | 1965 | 4 |
| 66338 7th St., DHS | 57,200 | 1951 | 2 |
| 11800 Mesquite, DHS | 69,900 | 1968 | 2 |
| 66060 Desert View, DHS | 79,500 | 1963 | 4 |
| 13600 El Cajon, DHS | 94,900 | 1986 | 3 |
| 13360 Caliente Dr, DHS | 158,900 | 1992 | 2 |
| 13766 Ocotillo, DHS | 179,000 | 2005 | 2 |
Market times were 9 days to 137 days for the REO properties and 155 to 177 for the non-reo sellers.
I especially like the multi-family units in Cathedral City. There is a strong demand for rental units in the area and most of the tenants are hard working folks that are great tenants. Duplexes that were selling in the mid $400’s three years ago can now be purchased around $200,000!
Values have fallen in most cases 50% or more, thus wiping out any equity most investors may have had. I believe many investors are opting to (or will) walk away from their property(s) since they see no potential for profit in the future. Banks have been unwilling to negotiate with investors….hopefully that will change.
A Loan Modification could become the new refinancing tool.
With the ten loan limit imposed by Fannie Mae and Freddie Mac, some investors feel they cannot obtain new loans under any circumstances, so the impact on their credit doesn’t matter.
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0902.pdf
How long will prices stay low? No one really knows. So the question is: “should I buy now when prices and interest rates are at an all time low, or should I wait because they may get even lower?”. Certainly, for a buyer with cash and/or good credit, there hasn’t been an opportunity like this for many years. Income properties can be purchased that will create a fantastic cash flow.
When is the “Best Time to Buy Real Estate”?
‘WHEN NO ONE ELSE IS BUYING’
No one really knows how many bad loans the banks are holding, or what their balance sheets would show if there were “full transparency”. I have several sources advising that banks are holding 80% of their problem loans in order to keep their balance sheets propped up, just waiting for the government to come up with a solution. It seems obvious from all the rhetoric being bandied about, that such a solution will ultimately emerge.
I welcome all comments and questions.
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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
