Jeannie Niles Real Estate Investment
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October 2009 Multi-Family Report
MULTI-FAMILY REPORT
PALM SPRINGS, PALM DESERT,CATHEDRAL CITY, DESERT HOT SPRINGS, RANCHO MIRAGE, LA QUINTA, INDIO, COACHELLA VALLEY
October 2009
Income properties selling for income…not speculation.
Cap rate of 6 to 7 are the average range for valuation.*
Most properties have multiple offers within days of coming on the market.
Many properties are selling for all cash.
Interest rates still at all time lows.
There are 7 multi-family properties in “pending” and 7 multi-family properties in “contingent other” for the month of October. All of the pendings are Bank Owned REO properties, while the “contingent other” properties are all short sales.
Short Sales are becoming far more prevalent in the current sales market. Six months ago it was next to impossible to get a lender to even talk to you about a short sale on income property. Major shift in lender attitude in the last 90 days….which is a good thing for the market. I believe this change in attitude will preclude a huge wave of foreclosures that everyone was anticipating.
13 Closed Escrows in October
| City | Type | # of Properties | Total Sales |
|---|---|---|---|
| Cathedral City | REO | 4 | 5 |
| Regular Sale | 1 | ||
| Desert Hot Springs | REO | 4 | 5 |
| Short Sale | 1 | ||
| Palm Springs | REO | 2 | 3 |
| Short Sale | 1 | ||
| 1000 Palms | Short Sale | 1 | 1 |
* Cap rate is the net operating income divided by the value. Net income is all gross scheduled income minus all operating expenses but does not include your mortgage payment. Any questions….let me know.
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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
