Indian Creek Villas Palm Desert, CA September '09 UPDATE

Indian Creek Villas
Palm Desert, CA
Update 9-8-2009

Three condos closed escrow:
72756 Willow #3, Palm Desert    66,000 *
72670 Thrush #2, Palm Desert    74,000 *
72667 Raven #3, Palm Desert     76,250

*sold over listing price

7 condos available for sale as of 9/4/09.

Asking prices are $69,800 to 105,000.
3 are REOs.
2 are Short Sales.
2 are regular sellers.

All the condos are selling quickly at prices under $80,000.

The rental market is firming up. We now have all our units rented. We are getting less rent than two years ago ($925 vs. $775/825).

<td

	Monthly	Annually
Rents	825	9,900	Projected
Vacancy and Credit Loss	41	495
Gross Operating Income	784	9,405

Water & Electric	0	0	Tenant
Gardening	0	0	Tenant
HOA Dues	220	2,640
Repairs & Maintenance	50	600	Projected
Insurance	20	240	Projected
Property Taxes	90	1,080	Projected @ 1.25%
Management	83	990	10% of gross rents collected

Total Operating Expenses	463	5,550

Net Operating Income	321	3,855

Cap rate 5%

Above is a model and no guarantees are implied by broker.

Inventory declined another 5% during the month of August. It’s a great time to buy as these opportunities will decrease as more investors return to the marketplace.</P

Indian Creek is a basic, no frills, bottom line project that is very well maintained by the Homeowner Association and enjoys home owners, second homes and investors that rent their properties to quality tenants.

There are four units to a building. Unit 1 is all on one floor at ground level. Units 2 and 3 are two story and Unit 4 is a one story upstairs. Square footage ranges from 840 to 924. All units are two bedroom, one bath.