Jeannie Niles Real Estate Investment
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May 2009 Multi-Family Report
MULTI-FAMILY PALM SPRINGS, PALM DESERT,CATHEDRAL CITY, DESERT HOT SPRINGS, RANCHO MIRAGE, LA QUINTA, INDIO, COACHELLA VALLEY
A total of twenty multi-family properties went into escrow in May, 2009.
| City | Type | # of Properties |
|---|---|---|
| Cathedral City | REO | 7 |
| Desert Hot Springs | REO | 6 |
| Short Sale | 1 | |
| Indio | REO | 3 |
| Palm Desert | REO | 1 |
| Regular Seller | 1 | |
| Palm Springs | Regular Seller | 1 |
| IN ESCROW | Asking Price | Age | # of Units |
|---|---|---|---|
| 81363 Miles, Indio | 72,500 | 1977 | 2 |
| 44709 Palo Verde St,Indio | 79,900 | 1945 | 2 |
| 82412 Valencia, Indio | 114,900 | 1940 | 3 |
| 73770 Santa Rosa, Palm Desert | 199,999 | 1984 | 2 |
| 45310 Sunset, Palm Desert | 759,900 | 1992 | 3 |
| 222 W. Via Sol, Palm Springs | 899,000 | 1958 | 3 |
| 32735 Desert Vista, Cathedral City | 130,680 | 1985 | 2 |
| 32580 Wishing Well, Cathedral City | 156,750 | 1986 | 2 |
| 33225-33227 Wishing Well, Cathedral City | 149,900 | 1985 | 2 |
| 33320 Wishing Well, Cathedral City | 159,900 | 1980 | 2 |
| 33205 Moreno, Cathedral City | 178,800 | 1993 | 2 |
| 32425 Monte Vista, Cathedral City | 184,500 | 1986 | 2 |
| 32550 Shifting Sands, Cathedral City | 329,900 | 1986 | 4 |
| 66660 3rd st, Desert Hot Springs | 25,000 | 1966 | 2 |
| 66442 Estrella, Desert Hot Springs | 39,250 | 1946 | 3 |
| 13655 Sarita, Desert Hot Springs | 89,900 | 1992 | 2 |
| 13960 Quinta Way, Desert Hot Springs | 89,900 | 1980 | 2 |
| 66304 Desert View, Desert Hot Springs | 135,000 | 2005 | 2 |
| 66298 Desert View, Desert Hot Springs | 156,000 | 2005 | 2 |
| 66878 Vista Pl, Desert Hot Springs | 204,900 | 2005 | 2 |
Market times were 4 days to 194 days for the REO properties and 105 to 310 for the non-reo sellers.
Activity will increase substantially for the rest of 2009. There will be many more REO’s as investors decide to let their properties go back to their lender.. Investors that have more than ten loans cannot obtain any additional loans.
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0902.pdf
It is anticipated foreclosures will be at an all time high by the end of July because of investor foreclosures as well as the moratorium on foreclosures that ended in March of this year.
Rents are declining in the area because of high unemployment in the service and construction sectors.
Rental income has fallen $100 to $200 per unit. A smart landlord will negotiate with any tenant that is considering vacating. Much better to have a lower rent than a turnover with some vacancy time thrown in.
Enough Negatives?????
Income property now produces “INCOME”. Cap rates * are a minimum 6% and occasionally as high as 12%.
Check out Great Real Estate Buys in 2009
There is a short period of time where millions of dollars can/will be made.
*Cap Rate Annual net income divided by the value of the property. A cap rate of 5% means you are earning 5% of the property’s value each year from rent
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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
