Dear Investors,

The Marin apartment market was quite active the last quarter of 2007, where well priced properties in good locations, sold to local investors. Gross rent multipliers on closed sales moved to 13-14 times rents in San Rafael for smaller (5-10 unit properties) down 1 point from the previous year. At the same time average Marin County rents increased last year nearly 7%.

In 2008, industry insiders are predicting even more rental increases for the County, with asking rents predicted to move up between 7 and 8%. Those people who bought in the past year will be very happy with their investments by the end of 2008, by seeing an expected 24 month rental increase of nearly 15%! Add that to your gross annual income and the value of your property has increased by thousands of dollars.

For example, say you have an annual gross income on your small income property of $122,000 per year. You raise rents this year by 8% (for a total of $9,760). The value of your building at $122,000 per year income times average gross rent multiplier of 14 brings the current value to $1,708,000. By increasing the rents to market with an additional $9,760 in income, the value of your property at 14 times rents will now be $1,844,000. This is a whopping increase of $136,000 all by just increasing rents.

Market Update

Look to see apartment loan rates to continue to drop as rates go down. In an effort to stimulate the housing market, the Feds are looking to lower rates in the next few weeks and income properties owners and buyers will be positively affected. Rates on 3, 5, 7, and 10 year interest only products are starting at 5.78 to 6.5 for the 10 year rate! These are fantastic rates!

With plentiful inventory and rising rents it is an excellent time to trade up from smaller properties in to larger projects. By increasing your income stream to larger properties your cash flow will increase with each rental increase.

Below are properties available through my office. Call me on my cell at (415) 302-7730 for more information and a private showing.

252 Red Hill, San Anselmo 

6 spacious units in San Anselmo (up to 1,100 sq. ft.) with garage. Easy commute.

Below are listed available properties in the 2-4 unit range that are best buys or added value situations from my viewpoint. Some have owner's units (added value) and some have a great location and potential for increased rents. These are not my listings; call me for further information.

4 Plex in Mill Valley - Includes a 3br/1.5 bath unit - $1,125,000 

Great Strawberry location, fully managed fourplex near shopping and restaurants.

4Plex in Novato - Units are condos - $899,000  Bread and butter property with all 2 bedroom, 2 bath units

4 Plex  in Novato - Includes a 3br unit! - $1,100,000  Pride of ownership property in downtown!

3 Plex in San Anselmo - Well maintained with views - $899,000  Well priced 3 units, with decks, laundry, nice units

Duplex in San Rafael - Includes 3br unit - $1,040,000  Classic building in Forbes area!! Great entry level property!

3 Plex in San Rafael - Three large units w/views - $1,095,000  Great brown shingled property with garages and laundry!

Duplex in Sausalito - Bay views and garages! - $895,000  Finally priced right!   Great starter investment!

11 units in Corte Madera - Corner lot, across from park - $3,000,000  17.3 GRM  Remodel and sell off as TIC's

5 units in Fairfax - Mixed use, totally remodeled - $1,100,000  15GRM   Reduced twice! Motivated owner!

23 units in Greenbrae - Prime location for conversion! - $6,000,000  12.6 GRM Great project for partners!

8 units in Novato - Bread and butter downtown! - $1,295,000   Needs work but 13.8 GRM

12 units in Novato - On 2 separate parcels - $2,100,000  12.8 GRM Lot split?

17 units in Novato - Bread and butter property in C location - $2,380,000   12 GRM

58 units in Novato - Spectacular hillside setting - $9,850,000  11.1 GRM Best deal for the money!

8 units in San Rafael - Bread and butter units, needs work! - $1,295,000   12 GRM

12 units in San Rafael - C- property, needs work - $1,775,000  11.7 GRM

13 units in San Rafael - Best location in Gerstle Park!!! - $2,499,000  13.9 GRM Owner is motivated!

15 units in San Rafael - Large units/ w owner's unit - $2,900,000  11 times projected rents

18 units in San Rafael - Central location - $3,300,000 11.1 GRM

21 units in San Rafael - waterfront in the Canal area - $3,750,000  10.4 GRM Always rented, big units

32 units in San Rafael - C- property in industrial area - $5,695,000  12.2 GRM

36 units in San Rafael - Great Gerstle Park location - $6,750,000  12 GRM Needs work, portfolio sale

43 units in San Rafael - Central San Rafael - $7,200,000  11.6 GRM Same portfolio sale, needs work

43 units in San Rafael - Canal area bread and butter units - $8,975,000  11.6 GRM

6 units in Sausalito - Totally renovated - $2,550,000  20 GRM - Can be sold as TIC's, views, parking

9 units in Sausalito - Gorgeous, spacious units w/parking - $4,250,000  21.6 GRM Huge units with spectacular views