Indian Creek Villas Palm Desert, CA August '09 UPDATE
/Indian Creek Villas
Palm Desert, CA
Update 8-13-2009
Five condos have gone into escrow since my last report in July.
Listing prices of properties placed into escrow were $64,900 for a fixer with mold to a high of $98,900 for a renovated unit. Market times have declined to an average of 20 days when properly priced!
There are two REO’s for sale. There are two Short Sales available. One Regular seller for a renovated unit at $119,000.
Closed Sales ranged from $77,000 for a unit need renovation to $125,000 for a completely renovated unit.
This condominium complex has great opportunities for an investor.
Cap rates for this complex currently exceed most multi-family buildings. A condo can be purchased for approximately $80,000. Estimated rents of $775 to $825 per month will generate annual net income of $5800(+-).
This is a 7.4% cap rate!
The rental market is difficult at present because of unemployment issues. Be prepared to have some vacancy for the next 12 months most likely. Make sure your unit is the nicest available and $25.00 per month less expensive.
In 2005, a unit could be purchased for $210,000.
In October 2007, a unit sold for $155,000.
In February 2008, we started seeing properties selling for $115,000.
August 2009, properties can be purchased in the $80,000+ range!
I expect prices to continue to increase in this development. This project is the least expensive in Palm Desert for a two bedroom unit! It’s a great location, and walking distance to El Paseo.
In the Coachella Valley, inventory has declined 41% since 1/31/09. It’s a great time to buy as these opportunities will decrease as more investors return to the marketplace.
Rents have decreased due to rising unemployment. Rental income will be $775 to $875 depending on the level of renovation in the interior. These units were built in 1971 and most have been partially or completely redone. Indian Creek Villas is a 300+ condominium project in South Palm Desert…one mile from the shopping area of El Paseo….”the Desert’s Rodeo Drive”….
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.