Commercial real estate: The day the mall died

I ran across this article the other day that you might find interesting. We all know what has happened to the single family market, and while the apartment building market seems to be holding steady with only marginal declines in rents, the same does not appear to be so with respect to commercial real estate.

Jim

__________

Steve Christ / Baltimore Personal Finance Examiner
June 22, 11:43 AM

According to the Federal Reserve, U.S. household net worth fell by $1.3 trillion in the first quarter, proving that green shoots are something of a fairy tale for the U.S. consumer, at least.

In fact, since its peak in the third quarter of 2007, household wealth has decreased by 21.6%, or more than a fifth. That is the most dramatic fall in the series since reporting began more than 50 years ago.

Yet somehow, the bulls keep pounding the table, saying there is light at the end of the tunnel, even though consumer spending is over 70% of the U.S. GDP.

Now, I don't understand how anyone could possibly think the consumer is coming off the mat given that type of wealth destruction.

Instead, I'm firmly in the camp that believes a "new normal" has begun, and it's based upon frugality more than frivolity.

Meanwhile, caught between a rock and a hard place during this change is a worsening outlook for the commercial real estate market.

Unfortunately, it gets worse everyday. . .

Commercial Real Estate... in the Crosshairs

That's because as unemployment surges, home prices continue to drop, and more wealth evaporates, consumers are more likely to slam their wallets shut rather than open them.

As a result, without an uptick in jobs and income, another debt-financed binge like the one we just lived through is as likely as a blizzard on the 4th of July in Key West. It simply isn't going to happen.

It can't be re-created either — even though the Fed is trying its best to do just that.

So, what we're essentially left with is a classic case of overcapacity, since the massive demand all that cheap money pulled forward can really only happen once.

As a result, we have too many cars, we have too many houses, and we have too many places to buy $5 cups of coffee. The list is endless.

What we don't have — or what we have a lot less of — are people who can support it all. Sure, money still exists, but it has very little velocity when the game suddenly turns frugal.

That has the effect of turning our consumption-driven society on its head, leaving household names staring down the barrel of bankruptcy. And believe me when I tell you it is going to get worse before it gets better.

Along the way, though, so many things we have accepted as "absolute givens" are going to be stressed to the breaking point.

April 16, 2009: The Day the Mall Died

One of them is the Mall — that icon of consumption itself. In fact, on April 16, 2009, "The Mall" as we know it actually died.

That was the day Chicago-based General Growth Properties (GGP) — the second-largest mall owner in the United States — filed for bankruptcy in federal court.

After all, GGP's bankruptcy filing was simply the tip of the iceberg. With more than $530 billion in commercial mortgages coming due in the months ahead, we could be facing another real estate collapse as dangerous as the one in housing.

That makes GGP the equivalent of a dead canary in a coal mine, as this cycle of distress will undoubtedly take others down. General Growth Properties will certainly not suffer alone.

"This is kind of the beginning of the end," Dan Fasulo of Real Capital Analytics said recently. "This bankruptcy will drive down the values of mall assets in the United States. It's going to put, I believe, more supply on the market than can be absorbed by investors."

In short, it is a complete re-run of what just happened in residential real estate, but this time it's on the commercial side. The only difference in this case is the timing, which shouldn't surprise anyone.

After all, commercial real estate typically lags what is going on in residential by about 18 months. And 18 months ago, Freddie Mac and Fannie Mae were trading over $30. Today, they are wards of the state.

That leaves us with a commercial real estate market that has much further fall.

Here's why.

The Outlook for Commercial Real Estate: Why This Market Has Further to Fall

At this very moment, there are four critical elements to this crisis — and they're all bad news.

1. Commercial property values are in a free-fall — In fact, according to the Wall Street Journal, four years worth of gains in value have been wiped out since the beginning of 2008. And it's possible property values could fall by as much as 50% from their peak when all is said and done. Take a look:

(Click image to see larger version.)

2. Vacancies are soaring — You don't even need me to tell you about this truth. Just take a look around your local mall, shopping plaza, or office complex. In many cases, it's like an absolute ghost town. In fact, vacancies are expected to reach 13.5% for retail and 17% for office buildings by year's end, eliminating a portion of the income necessary to make the mortgage.

The end results are defaults and delinquencies, as was the case with General Growth Properties. Moreover, delinquency and default rates for securitized commercial real estate loans are expected to continue soaring at an astonishing rate, according to research firm Reis Inc.

Here's what I mean:

(Click image to see larger version.)

3. Refinancing is NOT an option — The vast majority of commercial real estate mortgages are designed differently than the mortgage you might typically use to buy a home. In most cases, commercial mortgages are actually designed to be refinanced after a period of 5 to 10 years.

But because of the recession, banks have made the underwriting standards much more difficult these days. Sound familiar?

And as for securitized commercial mortgages? Forget it — as this graph proves, that game is over.

(Click image to see larger version.)

So, with roughly $530 billion in commercial mortgages coming due for refinancing in 2009-2011, and some estimates showing that as many as 68% of loans maturing during that time will FAIL TO QUALIFY for refinancing, you have to wonder how it will all get done. The short answer is... it won't.

As Federal Reserve Bank of Atlanta President Dennis Lockhart said earlier this week, the mortgage bonds due this year and next "are coming up against capital markets not active enough to deal with those maturities." When that happens companies go under.

(Click image to see larger version.)

Unfortunately, as you can see, there's no shortage of paper that needs to be rolled over.

4. Numerous interest-only loans are about to reset — Principal is now coming due on about $179 billion of interest-only loans that were written between 2005 and 2007. As in residential real estate, these loans were designed to give commercial borrowers lower monthly payments to boost cash flow. That allowed them to push the envelope in terms of the amount of money they financed. However, principal payments eventually come due, boosting the mortgage cost.

Now, with soaring vacancies and falling rents, some of these cash-strapped borrowers will undoubtedly have to default. About 87% of mortgages sold in 2007 were interest onlys, compared with 48% in 2004.

And in another mirror image of the housing bubble, loose underwriting and dangerous loan products will only lead to increasing defaults.

Taken together, that makes a commercial real estate collapse the next shoe to drop in this long decline — especially given the massive loss of household wealth.

**********

To read this article at its original source, click here or copy and paste the following text into your web browser: http://www.examiner.com/x-1528-Baltimore-Personal-Finance-Examiner~y2009m6d22-Commercial-real-estate-The-day-the-mall-died

To return to the Investment Property Update home page, click the Investment Property Update heading at the top of this email or type http://www.jjipu.blogspot.com/ into your browser address bar.

To Contact Jim, call (800) 874-0715 or click here to email him.

Click here to read more...

Maintaining Your Investment Property When Money is Tight

Interview with Frankie Alvarez of Buffalo Maintenance
(714) 956-8371 / fax (714) 491-0864
Click Here to Email



(If you are having trouble viewing the above video, click here.)

**********

If you need maintenance work or consultation for your building or project, please feel free to contact Buffalo Maintenance. They are available throughout Southern California. For an appointment please call Buffalo Maintenance, Inc. at (714) 956-8371.

Frank Alvarez is the Operations Director for Buffalo Maintenance, Inc. He has been involved with apartment maintenance & construction for over 18 years. He is also a lecturer & educational instructor. Frank can be reached at (714) 956-8371 or you can click here to email him. Please visit the Buffalo Maintenance web sites at: http://www.blogger.com/www.buffalomaintenance.com

If you would like to recommend a vendor for us to interview, please call us at (562) 236-0088.

To return to the main page of the Investment Property Update Blog, please click here.

Click here to read more...

Power of Attorney Can Be an Extremely Useful Tool

By John Walker
Century 21 Les Ryan Realty
(707) 462-5020 / Email John

The transfer of ownership of property, either real or personal, requires the approval of the owner or seller.

This can become a real problem if the owner is incapacitated or not available at the time of the transfer of the property.

There is a great document known as “Power of Attorney” wherein a person can stand in for the owner and sign documents to complete the transfer of property.

Power of Attorney forms come in two classifications. One is known as a “Special,” and it is used where you want to spell out in detail just what the owner wants the person whom he or she grants the Power of Attorney to do.

An example would be to open a bank account, deposit some specific funds and do something specific with those funds. It might otherwise be used as a directive within a partnership when one partner is not present, yet wants the other partners to do some specific legal transaction, described in the Power of Attorney.

The other Power of Attorney is known as a “General,” and it has within the printed form a multitude of things that the Power of Attorney can be used for. A word of caution: Be careful when you use this general form as it covers so many things. You may not want the person you appoint to sign for you to have such a broad range of legal power.

These forms may be obtained at any good office supply or stationary store. Title companies no longer provide these forms for your use. In fact, when you obtain your Power of Attorney form take it to the title company or your attorney for approval.

Now that you’re on the right track, let’s mention a few hints that will help you in dealing with this valuable tool.

If you are going to send it to a foreign land, then you must have the U.S. consul in that country approve and sign the form. They can also provide the notary public seal for the document. When you take the form to a notary public for witness and seal, be sure to caution them to place the seal in a legible manner. If it is not, the county recorder will not record the document and you’re back to square one again.

Oh yes, it’s a good idea to put a time limit within the body of the Power of Attorney, unless you want it to run for the lifetime of the owner or for the length of time that the ownership of the property is within the name of the granting owner.

Don’t be afraid to attach a legal description of the property to the Power of Attorney as a way of identifying just what property you want transferred or sold. For the elderly, this is a terrific tool to be used within the family to be sure that the wishes of the parents are carried out in a loving and legal way.
__________

John Walker is a Hotel and Motel real estate specialist who has lived in Ukiah since 1974 and currently works with Century 21 Les Ryan Realty at 495-A East Perkins Street, Ukiah, CA 95482. He is a former president of the Mendocino County Board of Realtors and a past winner of the Realtor of the Year award. He has extensive involvement in professional real estate organizations as well as community affairs including the Ukiah Chamber of Commerce, Mendocino County Chamber of Commerce, Healdsburg High School Board of Trustees, and the Mendocino County Muscular Dystrophy Drive. John believes all realtors should be part of the affairs of their community and should work to protect the rights of the property owner.

To contact John, call him at (707) 462-5020, or email him by clicking here.

To return to the Investment Property Update home page, click the Investment Property Update heading at the top of this email or type http://www.jjipu.blogspot.com/ into your browser address bar.

Click here to read more...

Lancaster Proposes Limiting Section 8 Housing

Amendments to the city's rental ordinance would allow business licenses to be withheld from landlords who want to rent to such tenants. Affordable housing advocates condemn the plan.
By Ann M. Simmons / Los Angeles Times

I am often asked what I think about Section 8. My answer is that the people who have it love it and the ones that don’t, don’t. There is a consensus that as long as the number of section 8 recipients does not constitute the majority of tenants, the program works. I know that often in condo complexes the board will frown on a certain percentage of tenants being in the complex.

I thought that the approach and view that Lancaster has on section 8 was interesting. Whether other cities will copy or ignore them will be interesting to watch.

Jim

**********

Determined to slash the number of Section 8 renters in Lancaster, officials are proposing amendments to the city's rental housing ordinance that would allow business licenses to be withheld from landlords who want to rent to low-income tenants with federal vouchers.

Officials contend that there are more than 2,300 residential units occupied by Section 8 tenants in their city, about 12% of the total number of vouchers administered by the Housing Authority of Los Angeles County. The federal program provides rental subsidies for the needy.

"We would not give out any new licenses for Section 8" under the new ordinance, said Vice Mayor Ronald D. Smith. "We would at least like to stem the tide. All we want is a fair and equitable share."

Last year, Smith wrote to U.S. Reps. Howard "Buck" McKeon and Kevin McCarthy, Republicans who represent the Antelope Valley, requesting help in appealing to the federal Department of Housing and Urban Development for approval to amend the city's business license ordinance for rental housing.

The amended ordinance would bar licenses for landlords who intend to rent residential property to Section 8 voucher-holders. It would not affect existing Section 8 landlords and tenants.

Officials at the county's Housing Authority acknowledged that Lancaster has the highest number of Section 8 contracts, out of the 20,095 federal contracts administered countywide. But they put the number at 2,100, or 10% of the county's contracts.

Maria Badrakhan, acting assistant executive director for the Housing Authority, declined to comment on any potential legal implications regarding Lancaster's proposal. But, she said, "there are federal fair housing laws that need to be considered."

She also rebutted allegations by Lancaster officials that her agency was actively encouraging Section 8 voucher-holders to move to Lancaster, stressing that "federal law does not allow us to steer folks anywhere."

More than 100,000 people are on the waiting list for Section 8 vouchers in L.A. County, Badrakhan said. Lancaster is an attractive location because of "the affordability, the quality of housing and the willingness of landlords to participate in the [Section 8] program," she said.

Several affordable housing advocates and landlord groups condemned the city's proposal, particularly when the number of homeless in the county is estimated at about 73,000.

Lancaster's proposal is an "out-and-out attack on low-income people," said Larry Gross, executive director of the L.A.-based Coalition for Economic Survival, a tenants rights group. "They are putting up a sign on the borders of Lancaster saying that poor people are not welcome here."

James Clarke, executive director of the Apartment Assn. of Greater Los Angeles, which represents about 25,000 owners and managers of rental properties, called Lancaster's proposal "outrageous." He said the vacancy rate for rentals in L.A. County had gone from 3% to 8% in the last six months.

"There are empty apartments, and landlords who want to fill these apartments would be more than willing to rent to Section 8, because they are guaranteed the rent," Clarke said.

__________

To read the full article, click here or copy and paste the following text into your web browser:
http://www.latimes.com/news/local/la-me-housing10-2009apr10,0,4953108.story

To return to the Investment Property Update home page, click the Investment Property Update heading at the top of this email or type www.jjipu.blogspot.com into your browser address bar.

To Contact Jim, call (800) 874-0715 or click here to email Jim.

Click here to read more...

Apartment Rents Fall in Southern California

L.A. County rents sank almost 4% in 2008, and job losses continue to hurt demand as new construction inflates supply.
By Roger Vincent / April 8, 2009

Well, this is the headline that many of us have been dreading. Apparently many of our tenants have or are going to “double up.” You might want to make sure that your rents are not above market and if you are thinking about raising rents you might want to make sure you are where you need to be. If you want help in analyzing your rents, give my property manager a call. She handles most areas and can give you an analysis of where your rents should be. She can be reached at (562) 236-0093.

The bottom line is that there are two forces that are coming after the apartment owner:

1) The recession is forcing tenants to double up or to move back home, and
2) First-time buyer incentive programs and unprecedented low interest rates are luring renters back in to home purchases.

We will keep an eye on this development for you and let you know of trends in this arena. In the meantime the word on vacant units is caution. Don’t push rents too high.

-Jim

To Contact Jim:
Call (800) 874-0715
Click here to email Jim.

**********

Apartment rents are falling across most of Southern California as unemployed tenants double up with friends or family and the affordability of foreclosed homes makes some renters into buyers, a new survey has found.

The average rent in Los Angeles County fell almost 4% in 2008 as apartment occupancy rates dropped and new units came online. The decline should continue this year as more renters lose their jobs, according to the annual USC Casden Forecast expected to be released by the university today.

"In L.A. County alone, 41,000 people moved out of apartments last year compared to the 29,000 people who moved in during the last five years," said forecast director Delores Conway.

To keep their units occupied, some landlords are lowering rents or offering concessions for signing a lease, such as a month of free rent or a reduced deposit, she said.

Rents should level out in 2010 as the economy recovers, the report said. The average one-bedroom apartment in Los Angeles rented for $1,397 a month at the end of last year.

__________

To read the full article, click here or copy and paste the following text into your web browser:
http://www.latimes.com/business/la-fi-apts8-2009apr08,0,4736812.story

To return to the Investment Property Update home page, click the Investment Property Update heading at the top of this email or type www.jjipu.blogspot.com into your browser address bar.

Click here to read more...

Investment Advice from a Financial Expert

Investment Property from the Perspective of a Financial Expert
Interview with Gary Flater of MCL Financial Group
(800) 692-6064 x219 / http://www.mcl1031.com/
Click Here to Email




If you are having trouble viewing the above video, click here.

**********

Gary Flater is the founder and chairman of MCL Financial Group, Inc. – Member NASD - SIPC in Santa Ana, California. No specific offer to buy or sell any security is herein implied. This is not a complete description of the subject. All investments and tax strategies have risks. Past performance is never an assurance of future results. No guarantees and/or promises are herein implied. This article’s sole purpose is initial education. Additional information is available by contacting MCL Financial Group at or 800-692-6064 x219.

If you would like to recommend a vendor for us to interview, please call us at (562) 236-0088.

To return to the main page of the Investment Property Update Blog, please click here.

Click here to read more...

IS THIS THE FUTURE?
By James Joseph
Owner of Century 21 Ambassador and Coldwell Banker Ambassador
Century 21 Liaison to Japan
(800) 874-0715 / Click Here to Email Jim

Some of my clients are reporting more vacancies and challenges filling up units. It might be the economy or a combination of tenants moving in with relatives and immigrants moving back to their countries.

For whatever reason, this might be a good time to take a look at your rents and see how they compare with your neighbors’. Recently during my drive into work I came across this sight on Scott Avenue in Whittier. The location is south of Whittier Blvd. I was surprised to see a “for rent” sign on every single apartment lawn on the street.

The signs reminded me of the tough time in the 90s when landlords were giving away free months’ rent as wells as microwave ovens and were loosening credit requirements and security deposits to get the units filled.

Whether or not we are going down that road remains to be seen. I would be interested to hear your comments on what you are seeing in the market.

The income property market has fared much better than the single family real estate market as well as the commercial market. If, on the other hand, rents start to decline, that might be a different story. Unlike single family homes, lenders never did loans will less than 25% down and as a result there is not a dearth of income properties in foreclosure like single family homes. Since rents held their own or went up that gave apartment owners strong reason to keep their properties and brag about the soundness of their investments as compared to stocks, 2% savings accounts, and Bernie Madoff’s portfolio.

If rents slip and vacancies rise, the challenge might increase. We will see. If in the meantime you want to find a buyer for your apartment building and want to get out of the business and take it easy, call, click, or visit me and let me find a buyer for your apartment building. I can find a buyer for your property in the least amount of time for the most amount of money.

In the meantime, tell me your vacancy or rent story. Are we holding rents up or are they slipping?

-Jim

(800) 874-0715
Click here to email James.

**********

James Joseph is a 26-year veteran of the real estate industry and specializes in apartment buildings. He has sold over 2,300 units in his career. The range of cities he covers reaches as far south as Costa Mesa, as far north as Pasadena, and as far east as Ontario. He is recognized for his mass marketing to over 18,000 apartment owners on a monthly basis, and he is well trained and educated in his market and highly recommended by past clients. He has maintained a successful career in listing and selling apartment buildings while juggling office ownership, national speaking, and foreign real estate consulting.

Mr. Joseph is the owner of Century 21 Ambassador at 15201 Leffingwell Road in Whittier and Coldwell Banker Ambassador at 16201 E. Whittier Blvd in Whittier. The office is a 14-time consecutive winner of the coveted Centurion award and now the Double Centurion award for sales excellence. With over 140 agents in two offices, he developed and oversees the Commercial Investment Division. He can be reached at (800) 874-0715. You can also get more information or view his current listings by going to his website at http://www.josephapartments.com/.

To return to the Investment Property Update home page, click the Investment Property Update heading at the top of this email or type http://www.jjipu.blogspot.com/ into your browser address bar.

Click here to read more...

Bureau's power scares homeowner
By Brian Joseph
We here at OC Watchdog believe in justice, and we'd like to think our government does, too. But when we hear about guys like Dan Bader, we start to wonder.

What an absolute nightmare! The bottom line is that a fellow landlord was roughed up by Orange County bureaucrats because of his ad on Craig’s list. This is one of those cases where you win the battle but lose the war. Please use caution when writing your ads for renters. If you need help with ads or want to have someone take the hassle of management off your hands, please feel free to contact my director or property management here at the office. She does a terrific job and we currently have an incredibly low vacancy rate! You can reach Candy Livesey at (562) 236-0093.

Jim

__________

We first wrote about Bader last year, when he was embroiled in a messy dispute with the state Fair Employment and Housing Department and the Fair Housing Council of Orange County.

Back in 2006, Bader advertised on Craigslist a room for rent in his Newport Beach home. As an afterthought, he wrote that the 480-square-foot rental unit was “Well suited for professional adults” and “Perfect for 1 or 2 professionals.”

That might not seem like a big deal to you, but the Fair Housing Council of Orange County thought those few words implied discrimination against people with children. The council filed a complaint with the Department of Fair Employment and Housing, which summoned Bader to a hearing in downtown Los Angeles.

Bader had no idea what he was getting himself into.

You see, it turns out the Fair Housing Council of Orange County is a very special entity. There's only a few dozen like it in the country. The council is a nonprofit charged with enforcing fair-housing laws – the laws that prevent landlords from discriminating against blacks, Jews, gay people, etc.

Our research indicates these nonprofits aren't well-funded, but they do have a way to make money: They have special legal powers to seek money from the people they accuse of discrimination. As one attorney told us, there's nothing to stop these agencies from effectively blackmailing landlords.

“They hold all the cards,” Bader said.

At the hearing in Los Angeles, Bader found himself before a couple of fair employment staff members. The council wasn't even represented. The bureaucrats told Bader they had investigated and found that Bader does not discriminate … but the ads were still a problem.

The complaint would be dropped – if Bader paid the Orange County council $4,000 and agreed to five years of classes at $250 a class.

Bader said no – the state itself said he didn't discriminate. But before he knew it, the state turned around and sued him for discrimination, on behalf of the council, and sought “unlimited” damages.

That's when we wrote about Bader last year. He was determined to fight the system and beat the suit. He countersued the Fair Employment and Housing Department, the Fair Housing Council and the council's CEO, D. Elizabeth Pierson.

Last year, Orange County Superior Court Judge Andrew Banks dismissed Bader's countersuit and said he would have to pay the department, the council and Pierson's attorney's fees.

Then, in the fall, right before the trial on the Craigslist ads, the state dropped the suit. Two years after the initial complaint, all charges of discrimination were dropped. The case went away.

The state told The Orange County Register it dropped the suit because the council told it to drop it.

But by then Bader had spent quite a bit defending himself. He asked the court to award him attorneys' fees.

This month Banks denied his motion to have the department and council pay his legal bills.

**********

To read the full article, click here or type the following text into your web browser:
http://headlines.ocregister.com/news/-24618--.html

To return to the Investment Property Update home page, click the Investment Property Update heading at the top of this email or type http://www.jjipu.blogspot.com/ into your browser address bar.

Click here to read more...

Navigating the 1031 Exchange
Tips for dealing with the difficulties of a common investor transaction
Interview with Derek Phillips of Downstream Exchange
(626) 796-1031 / http://www.downstreamexchange.com/




If you are having trouble viewing this video, click here.

**********

Derek received his Bachelor of Arts degree with Honors from the University of California, Santa Barbara, and his Juris Doctor from the McGeorge School of Law, University of the Pacific.

He has been a California Real Estate Broker since 2005, and he is a member of the Graduate REALTOR® Institute.

Derek works with clients, brokers, escrow officers and attorneys in coordinating the 1031 exchange process. He is also reviews, edits and drafts 1031 exchange documents to insure that they conform to any new rulings. He is responsible for all new marketing materials and programs, and he is involved in the research and design of new tax deferral products for clients selling highly appreciated assets.

If you would like to recommend a vendor for us to interview, please call us at (562) 236-0088.

To return to the main page of the Investment Property Update Blog, please click here.

Click here to read more...

Smart Taxes
Smart strategies for saving on your income property taxes.
Interview with Bruce Jones of Tax Wealth
(800) 300-4723 X 14 / http://www.taxwealth.com/



If you are having trouble viewing this video, click here.

**********

Bruce Jones entered the financial services industry in 1970 and has taught the subjects of tax management and financial strategy planning since 1974. He is President and CEO of TaxWealth®LLC, a tax advisory company which provides comprehensive income and capital gains tax planning solutions for owners of real estate, privately-held businesses and other appreciated assets. In addition to serving its own clientele, TaxWealth® supports CPAs, attorneys, real estate professionals and financial advisors to solve their clients’ tax problems.

Headquartered in Newport Beach, California, TaxWealth® works with clients and professional affiliates nationally. You are encouraged to visit their web site at http://www.taxwealth.com/ or call Mr. Jones toll-free at (800) 300-4723 ext.14 for a FREE consultation to discuss your tax concerns.

If you would like to recommend a vendor for us to interview, please call us at (562) 236-0088.

To return to the main page of the Investment Property Update Blog, please click here.

Click here to read more...

An Exciting New Listing, Newly Built

5 Units in Moreno Valley

I don’t think in my nearly thirty years of selling apartment units I have seen a property as unique as this. The property is absolutely gorgeous. This four-plex was built in 2008, and the construction is top of the line. The lot is large, and the builder/owner tells me he put over $1,000,000 into the property. You have to see how gorgeous this place is to believe it. The property is priced at $925,000. The gross rent multiplier is 9.94 and the annual income is $93,000.

And here’s the kicker: All five units are FOUR BEDROOMS! I don't think I've ever listed a property with four bedrooms in every unit.

This seller wants out. The property is in Moreno Valley. For more information, call (562) 236-0088, or email me by clicking here.

-Jim

Click here to read more...