Jeannie Niles Real Estate Investment
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Indian Creek Villas Palm Desert, CA October '09 UPDATE
Indian Creek Villas
Palm Desert, CA
Update 10-5-2009
Three condos closed escrow in September:
72685 Raven #1 75,000
72763 Willow #1 81,000
46835 Frontage Rd. #1 98,900
Market times were 24 to 33 days. All sold at listing price or very close to it.
Unit 1’s are the front unit, all on one floor and seem to be the most popular model since it’s similar to “a little house”.
Five condos went into escrow this month. When a good property becomes available, there are multiple offers very quickly. If you are serious about purchasing, have your qualification letter from your lender as well as proof of funds, since these items must be attached with your offer to purchase.
7 condos available for sale as of 10/3/09.
Asking prices are $63,806 to 115,000.
3 are REOs.
3 are Short Sales.
1 is a regular seller.
Least expensive condo sold for $66,000 in August. This property was a fixer and had mold issues.
View from Indian Creek Villas
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).
| 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.
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.
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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
