Indian Creek Villas
Palm Desert, CA
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.
July 2009, properties can be purchased in the $70,000 to $80,000 range!
One unit that needs renovation is currently offered for $64,900!!!!! This property has been on the market for a long time and the bank should be anxious to accept an offer.
In the Coachella Valley, inventory has declined 38% 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.