In Southern Marin smaller apartment properties were trading at about 15 times rents in the non view areas and upwards of 18 times rents if the property commanded Bay views or other outstanding amenities.

 

Rents are now flattening out in Marin county after increasing almost 30% in the past three years. In Southern Marin the average one bedroom rent in Sausalito is $1700 per month and two bedroom rents are $2300 per month and up. Tiburon rents are very similar, although buildings with outstanding locations and amenities can command anywhere from $1800 for a one bedroom to $3500 for a two bedroom.

 

In central Marin rents are also flat, with Gerstle Park one bedrooms at $1375 and two bedrooms as high as $1800 in Sun Valley. Of course, the exceptions are apartments that are extremely upgraded and in that case rents could be as high as $2900 for a two bedroom with outstanding amenities.

 

Financing for purchases is still readily available in the low 6's, with downpayment requirements of 30% for investors in the 2-4 unit range and 30% and up for 5 or more units. Underwriting criteria is fairly stringent, although I don't see it too much different than before the "easy money" lending from 2003-2006. Lenders in Marin will always lend on a well located and well maintained investment property as it is very low risk for them. Occupancy factors in Marin rarely dip below 95%, making this a very safe investment.

 

This month, loan rates were researched and provided by Nevin Miller of First Security Loans in San Rafael. His number is 699-7919 for more detailed information.

 

I expect closed sales prices on investment properties to slowly decline through much of this year and flattening out in the third quarter. There will be no dramatic price drops similar to the housing market because the stable rental market here in Marin will firm up values. As in the housing market, income property buyers are looking for good value and those properties that are well priced will sell within 60-90 days.

 

This is a great time to buy investment property with prices and mortgage rates finally affordable again.

 

Happy hunting!

Katherine J. Higgins
Investment Broker
Mobile: (415) 302-7730