Jeannie Niles Real Estate Investment
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September 2009 Multi-Family Report
MULTI-FAMILY REPORT
PALM SPRINGS, PALM DESERT,CATHEDRAL CITY, DESERT HOT SPRINGS, RANCHO MIRAGE, LA QUINTA, INDIO, COACHELLA VALLEY
September 2009
Fifteen properties went into escrow this month
Inventory has declined from 181 properties in January to 110 available properties in October. There has been a shift from REO properties to more short sales as lenders become more willing to work with investors.
The investment market continued to improve throughout the summer, even with temperatures well over 100 degrees.
My favorite area for small investment property is Cathedral City Prices are starting to increase. As of 9/30/09 there were only 8 duplexes for sale. There are no REO properties currently available in this area. One duplex sold this month for $219,000….as compared to six months ago when units were selling in the mid to high 100’s.
Good properties sell fast so it’s imperative that you have your qualification letter and proof of funds so an offer can be tendered quickly.
Example of a duplex in Cathedral City area
Most units have tile roofs, are 3 bed/2 ba, on sewer with garages.
Attractive financing is available with 25% downpayment. Rates are at 6.25% interest, 30 year fixed, one point. This applies only to one to four unit non-owner loans.
Closed Escrows in September
| City | Type | # of Properties | Total Sales |
|---|---|---|---|
| Cathedral City | REO | 3 | 4 |
| Regular Sale | 1 | ||
| Desert Hot Springs | REO | 8 | 8 |
| Palm Springs | REO | 2 | 4 |
| Regular Sale | 1 | ||
| Short Sale | 1 | ||
| 1000 Palms | Short Sale | 1 | 1 |
If you are looking for a Pride of Ownership building with no deferred maintenance in the downtown Palm Springs area, call me! There’s an 18 unit building available that anyone would be proud to own!
There’s also several 6 to 9 unit buildings in the Cove area of Cathedral City that have cap rates of 8%. With the development planned for this area, these units should perform very well.
Interest rates are still low and the market is improving.
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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
