Monday Money Maker - 24 Sept 2012 - Riverside CA (Riverside County Income Properties)

The Triplex being featured this week has some really nice Money Making potentially especially since it is in the City of Riverside and it currently fully rented (even though one of the units is under normal rent possibilities).

The marketing agent has not provided a photo as of this writing therefore sorry to not be able to share one with you at this time however send me an email and it would be my pleasure to send you the address to do a drive-by and look for yourself. This income property is can fill your pockets with steady rents ranging from $675 for one unit and $800 each for the other two units. That means a monthly gross income of $2,275.

Of course like usual the reason this property has gone unseen for the past week is because it way over priced for it's current income because the easy / safe value is only at $172,125 and the Tim Taggett Value is $193,375 yet the listing company is currently listing it for $330,000.

Current listing price is way over the true value based on income earning potential however a property with kind of income deserved to be recognized especially since all the other properties listed this week were all vacant and currently (if mentioned at all) being marketed based on potential rents.

REMEMBER .... never acquire a investment / income property based on the sales price of anything around it and instead ensure the income can take care of the property without you handing over money every month. That said someone with a large amount of 1031 exchange and the need for an up leg property to be in the $300,000 range it might make sense to purchase this however I would personally say go pick up 2 properties that are generating income and valued at $150,000 each instead because in the long term your portfolio will thank you for it!

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Any questions or would like to discuss investment property give me a call directly 760-500-7292 or email at RetireEarly@gmail.com.

Happy Investing!

Tim Taggett

DRE# 01468188

REI Powerhouse

Darryl Self, Broker

Friday Finds - 21 Sept 2012 - Hemet CA Duplex (Riverside County Investment)

This week's Friday Find will earn its future investor over $480 per month even with the current tenant paying below market standard. Today's investment is in the city of Hemet CA, a duplex getting $1,350 a month in a solid industry city within Riverside County.

Current listing price is $119,000 which isn't too far above the safe price of $106,250 or the Tim Taggett Value of $114,750.  Unfortunately the marketing company did not publish the exact number of beds or baths therefore a more solid comparison cannot be done at this time however if interested let me know and I'll be glad to find out further details.

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Don't forget you can subscribe to receive my Riverside County Income Property Blog via email at the upper right hand corner!

Any questions or would like to discuss investment property give me a call directly 760-500-7292 or email at RetireEarly@gmail.com.

Happy Investing!

Tim Taggett

DRE# 01468188

REI Powerhouse

Darryl Self, Broker

Wednesday Wacko - 19 Sept 2012 - Palm Desert (Riverside County Income Property)

It is again time for everyone's favorite blog of the week, the next edition of Wednesday Wacko! This one is a great to point out one of the most common mistakes investors make when buying a small income property such as this triplex which is trying to base the sales price off of what they purchased it for instead of the amount of income it is producing.

The number one biggest mistake a new investor makes when looking at small income property is trying to base the acquisition price on what other investors or owners have paid for a similar property in the neighborhood. Remember just because the bank thinks that's the way it should be valued does not mean that is the most profitable way or the safest way!

This property is located in the city of Palm Desert and has currently been on the market for more than 800 days already, think it's time for a different strategy?

The marketing agent does not even include any current rent rolls, just some scheduled income, yet does not give any kind of break down of what the units are and how much each one is taking in per month. That is just horrible when it comes to income property how can a sound investor make a good decision without even knowing the amount of income?

Current list price is at $349,000 which considering that would be about $100,000 in profit for the seller sounds good for them but definitely not for the new owner because even giving the benefit of the doubt and stating this property is getting $600 per unit the Tim Taggett Value would only be at $153,000 and safe value would of course be the same in this guesstimate since the safe value is always based off of the lowest rent able to be made for all units. Just plain and simple this is being horribly marketed and without it being a short sale or the need for a 1031 exchange I can not see the value of this property being anywhere close to the list price and obviously neither can anyone else considering it has been on the market for more than 2 years already.

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Don't forget you can subscribe to receive my Riverside County Income Property Blog via email at the upper right hand corner!

Any questions or would like to discuss investment property give me a call directly 760-500-7292 or email at RetireEarly@gmail.com.

Enjoy and Happy Investing!

Tim Taggett

DRE# 01468188

REI Powerhouse

Darryl Self, Broker

Monday Money Maker - 17 Sept 2012 - Riverside Ca (Riverside County Triplex)

This week's Monday Money Maker really has me excited for a few different reasons, one being that it is located in the city of Riverside CA which is awesome for location. Another part I am excited about it is a fully rented triplex near UC Riverside which means getting tenants in the case a unit goes vacant should not be a problem. Like always the marketed price is higher that I would prefer but then again that's just the asking value not the true value or necessarily the final value of the negotiated acquisition.

Not a major deciding factor when looking at a multi unit however a huge plus is when it has a separate meter for each one of the units which this property does already have which is another great bonus. This particular Money Maker also has a very diversified set of units with one one bedroom, one two bedroom and one three bedroom which gives a good selection for any potential tenants however by reading any of my previous evaluations you know the safe value is based on the lowest rent received which in the case of so many different types of units that does skew the numbers slightly and therefore a reasonable offer would be based off the actual rents and not based off the lowest rent acquired.

Before I get into the value this property should be marketed at I will state the current marketed price of this triplex is at $240,000 which is about $32,000 more than a smart investor would want to acquire it for. That said the rents from smallest unit to largest is currently set at $550, $900 and $1,000 per unit each month. The safe value would be (once again slightly skewed) $93,500 and the Tim Taggett Value is $208,250 for this triplex in the very desirable rental market in the city of Riverside. With an initial investment of twenty percent and acquired for a reasonable $205,000 this property would net a cash flow just under $800 per month.

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Any questions or would like to discuss investment property give me a call directly 760-500-7292 or email at RetireEarly@gmail.com.

You can also signup for delivery via email on the upper right hand corner of this blog.

Happy Investing!

Tim Taggett

DRE# 01468188

REI Powerhouse

Darryl Self, Broker

Friday Finds - 14 Sept 2012 - Cathedral City - Riverside County Income Property

Who ever thought the income property that would be featured on a Friday Finds is located in Cathedral City California? As stated previously the purpose of the Friday Finds series is to show you some well valued property and the reason(s) why it is such.

Today's property is a little more off balance than I would normally pick when it comes to a duplex because one of the units has 3 bedrooms whereas the other only has 1 bedroom. That said it makes the analysis slightly off and not so ordinary because as the suggested value from this blog is based on the safe price, meaning if all units are 100 percent occupied at the lowest rent well in the case with one being a 3 bedroom and another being only a single bedroom that of course means the entire property will be based off of the lower rents and therefore will be a more stable acquisition yet a little harder to convince the seller of your value.

The simple breakdown is the property is currently being marketed for $139,000 with the larger of the 2 units being rented for $850 per month and the smaller for $675, according to the listing firm they are both long term stable tenants. So the current Tim Taggett Value is at $129,625 with the current rent rolls and an safe value of $114,750. If acquired at the value of $115,000 and putting an initial investment of 20% (like I usually suggest) this property should cash-flow around $580 per month including paying a management company to handle any headaches at 3am.

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Any questions or would like to discuss investment property give me a call directly 760-500-7292 or an email at RetireEarly@gmail.com.

Thanks for reading and Happy Investing!

Tim Taggett

DRE# 01468188

REI Powerhouse

Darryl Self, Broker

Wednesday Wacko - 12 Sept 2012 (Palm Springs Riverside County Income Property)

Today's posting is titled under the series Wednesday Wacko which is setup for our opportunity to look at a property that has been on the property for a long period of time, over priced, improperly marketed and/or the income does not equate anywhere near the amount the property is being offer for.

All of this said keep in mind the primary purpose of showing what is wrong with a property's marketing is to point out what you should be looking for when investing so you can avoid making a mistake because the most important time of an investment is the time you acquire it.

Today's property is currently being offered for $479,000 and has 4 units in the city of Palm Springs California. All of the rooms are 2 bedrooms and 1 3/4 baths however the highest value being currently obtained is $900 per month which in the event all four units were rented for this higher rent it would still not be worth even close to the current offered price. The market has also tried to show them this is the case considering it has been actively on the market for 408 days now without negotiating a successful contract.

My value break down for this Palm Springs income property is really simple just like any other investment with income properties it should be solely based on the amount of current income and the desired return on the investment. Will all units rented at $900 per month each it would have a Tim Taggett Value of $306,000 however considering that is not the case because the other three units are for less the current value is $295,375 and the safe value is at $144,500 which his less than half of the currently offered price! This is officially this week's Wednesday Wacko!

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Any questions or would like to discuss any investment property give me a call on my cell 760-500-7292 or send me an email at RetireEarly@gmail.com.

Thanks for reading and Happy Investing!

Tim Taggett

DRE# 01468188

REI Powerhouse

Darryl Self, Broker

Monday Money Maker - 10 Sept 2012 (Riverside County Hemet)

Since this is the first Monday Money Maker for this blog first let us go over what is the purpose which is to share with you the highest income generating property (stated based on the marketing agent) that has come on the market within the past 7 days and is still being actively marketed. To first tell you what  will not be posted here, you will not see anything that is longer than 7 days old, you will not see anything that has already came on the market and accepted an offer, and you will definitely not see anything on here that is based on the estimated rents (unless it is the only property listed that week).

For all of you that read the blog for Friday Finds or have known me over the years, I do not estimate value or guess based on some made up might get rents. In the event there is a multi unit that is partially rented then the lowest current rent will be used fort the basis of "after fully rented value".

That said, this week's Monday Money Maker is in the nice warm city of Hemet California. This is a single story duplex (2 unit) apartment building which is 100% occupied at some really nice rental rates. Both units are 2 bedroom which is my personal preference because they are generally the easiest to get rented in the event of a vacancy.

The lower of the two units is a two bedroom one bathroom renting for $725 per month and the other unit is currently renting for $750 and is a two bedroom two bath apartment. This building as 2 two car garages one attached to each of the units which is a great marketing point as that is highly desired from a renter.

With everything discussed above all you really probably want to know is how much is the Tim Taggett Value of this property. Well the true easy value I would give is $123,250 which is why this property does not have offers breaking down the owner's door however even if acquired at the offered price of $155,000 and a 20% initial investment the property would still cash flow roughly $260 per month with the current long term tenants staying right were they are at and a professional management company taking the late night phone calls.

There you have it, I have shared with you the best Multi Unit / Apartment building that is generating a steady source of income and at a decent price.

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Any questions or would like to discuss any investment property give me a call on my cell 760-500-7292 or send me an email at RetireEarly@gmail.com.

Happy Investing!

Tim Taggett

DRE# 01468188

REI Powerhouse

Darryl Self, Broker

Friday Finds - Riverside County Income Property 7 Sept 2012

With this being the first posting I would like to explain what the main purpose of this blog is going to be. Of course the name says it all, I will be posting about Income Generating Properties that are ready to be acquired by a new investor. Please do not be mistaken when I state income property I do mean income and with no less than two units on it as the primary function of a single family home is for someone to live in and not to gain income from.

With that out of the way, WELCOME to the blog that will help you understand income properties as I have learned them for more than a decade. My goal is to give you one property to review every Friday at the very least and will be titled as Friday Finds. This will feature a property that I may or may not have a personal interest in liquidating however that will not have any factor in the choice of putting the property on here especially for a Friday Finds as there are plenty of other days throughout the week for me to tell you about those. The base criteria is going to be something is already on the market, at least 2 units (mostly 2 - 4 units as that is entry level property), good value based on others in the area and the overall price within the county of Riverside.

To show there are so many affordable investment properties available right now I actually picked one that is being offered under $100,000 ($100 K).  So I am completely upfront the list price is currently at $98,000 (subject to lender approval). As you develop to know my way of thinking you will see that I do not solely say just because someone has decided to offer a property at a specific price it automatically means their price is right in fact many times (especially with income properties) they are wrong. The standard way to evaluate an income property above 4 units is based on the potential rents to be collected (bad basis because actual income is way more accurate) whereas any property 4 units or below is considered a residential property and therefore is usually valued at the price based on properties sold of similar type within the area.

Enough of a vocabulary breakdown, this property is actually a triplex which has 2 units rented currently at $600 and $550 with one unit vacant, located in the city of San Jacinto. Each unit is a 1 bedroom / 1 bathroom and considering on paper they are exactly the same, I would value the property based on both of them being rented at the lower rate of $550 / month as that is the more guaranteed shot.

Based on the actual rents I would say this property high values at $97,750 with a safe value of $93,500.

If acquired for the safe value and with 20% initial investment this property should yield about $390 per month (already including professional property management fees) at the lower rent and the one unit still remaining vacant. Therefore once the appropriate rental rate could be established and the second unit being rented out to a stable tenant, the cash flow would raise to more than $800 per month.

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Further questions give me a call anytime at 760-500-7292 or send an email to RetireEarly@gmail.com.

Tim Taggett
DRE# 01468188
REI Powerhouse
Darryl Self, Broker