Foreclosures and Short Sales hitting the North
Bay investment market.
San Rafael-As prices drop across the board on North
Bay properties, investment properties that were purchased in
the past four years have not escaped the downturn. Granted,
there are not nearly as many short sales and REOs as in the
housing market, but the investment market is beginning to see
some great deals in Marin and Sonoma counties.
Four years ago prices were at the peak for two units
or more, with the smaller properties selling at greatly
inflated prices as entry level buyers who could not afford a
home purchased these properties to occupy one of the units.
Duplex prices in central Marin were selling as high as the mid
$900's in 2004-2005.
Now we are seeing the same type of property being
offered at $750,000 with sales closing under $700,000. In
Sonoma county, duplexes can now be purchased below $300,000
when just four years ago they were trading above $500,000.
In 2004-2005 fourplexes in central Marin county were
trading as high as $1,200,000 and now have moved down to
around $1,000,000. I expect those prices to continue to soften
as buyers become more aggressive with price concessions and
anxious sellers just want to "move on."
In the 5 or more unit category, where lending has
become especially conservative, gross rent multipliers have
dropped from a high of 15 times rents in central Marin (up to
18 times rents in Southern Marin) to a more reasonable 12-13
times rents.
Distressed properties in this group are harder to find,
but there are some properties being offered now, where the
sellers are willing to take substantial losses from their
purchase just 3-4 years ago.
I have listed below a number of investment properties
that are being offered in Marin and Sonoma counties at prices
that are substantially discounted. Some are REOs and others
are selling below the amount of debt against the property
(short sales).
Please review the following and call me at 415-302-7730
if you have an interest in any of these offerings:
5+ units, Marin and Sonoma County - Owners
taking big losses:
- 10 units in Central San Rafael, large units, offered at
$2,275,000, 12.3 times current rents, good central location.
5 cap
- 20 units, northwest Santa Rosa near Coddington Mall,
offered at $1,975,000
$275,000 below what owner paid 4
years ago Mix of two's and one bedrooms
6.5 cap rate
2-4 units, Marin County-Short Sales and
REOs:
- Single level duplex with two bedroom units. Washer and
dryers in units.
$599,000 in good Fairfax location.
(Adjacent duplex is for sale at the same price.)
- 3 units with granny unit and unpermitted unit in central
San Rafael. $500,000, this is a short sale.
- Duplex in Gerstle Park in excellent sunny location. Big
units, great rents at $1650 and $1675. Motivated owners!
Possible short sale. Offered at $750,000
- Bay view duplex in Sausalito! Owner bought at REO
auction for $750,000 and is now being offered at $699,000.
Monthly income $2900.
2-4 Units, Sonoma County-Short Sales and
REO's:
- Two southwest Santa Rosa 4 plexes offered for
$465,000 each. Super motivated seller.
- Prime Bennitt Valley fourplex with all 2 bedroom, 900
square foot units, offered at
$699,000.
Katherine J. Higgins
Investment
Broker
Mobile: (415)
302-7730
2043 -
2045 Fifth Ave.
