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