Investment Properties

4 acre, gated, private estate property just reduced in Bermuda Dunes, CA. $2,950,000

Reduced over $200,000.  Bermuda Dunes Estate.  Sellers are motivated, come see this amazing property on 4 private, fenced, irrigated acres of land.  It feels like you are in the country, but the property is located just off of Washington St.  If you are looking to sell in the Coachella Valley, give local agent, Kim Kelly a call at 760-285-3578.

42605 Byron Pl., Bermuda Dunes is one of the last remaining multi acre residential estates in the area.  Sellers have remodeled and updated the 1981 custom home of approx. 4800 sf, and featuring 4 bedrooms and 5 bathrooms.  This spanish style home offers multiple brick arches throughout, venetian tile and floating wood floors, vaulted ceilings with wood beams, custom granite counter tops of varying materials, custom backsplashes, modern kitchen and bathrooms, wet bar, two fireplaces.  This home is incredible.  Triple attached garage, again with a cathedral ceiling.  Now, let’s go outside…

Indoor/outdoor flow right to the incredible backyard with it’s pool and spa, outdoor cook station, over 70 mature trees, birds singing, mountain views and green pastures.  There are 3 full irrigated pastures, dual entry gates, two circular driveways, a private well AND city water to site, IID for cheaper electricity, a tack/feed room, dog kennel, 6 stalls and peace!  Short term vacation rentals are ok in Bermuda Dunes, and this large parcel supports another home or ADU as it’s zoned now, with the future possibility of more homes/acre if you wanted to develop.  Take the tour below..

5 design elements to enhance your property

5 Design elements that add value to your home.  Thinking about listing your property?  If so, put on your buyers shoes, and really LOOK at your home.  You still have to live in it while it is being marketed, or at least own it, so be sensible, but keep in mind that some of the $ you invest will have higher returns than others.  If you are looking to buy or sell your Coachella Valley property, give local agent, Kim Kelly a call at 760-285-3578.

5 Design Elements that add value to your home 

1.  Whole Home Automation:  Buyers love to be able to monitor their home’s special functions remotely.  Turn on the heater or A/C.  Heat the spa or pool and spa.  Control the fireplace, the window shades, just about everything is able to be programmed now, so make it happen!
2. Use a variety of colors, textures, design patterns.  Be eclectic, but not crazy.  The same old gray and white is so out!
3. Use Color:  Buyers love color contrasts as long as they make sense.  Use a professional realtor, or hire a designer who hears you.  Make your home memorable.
4. Outdoor living/dining spaces:  Buyers in the Coachella Valley move here because they can be outside most of the year.  Misters, a smashing pool/spa/hardscape.  An outdoor entertainment area with pizza oven, wine refrigerator, grill, asada area, just make it feel like a retreat.
5. Landscape Design:  This one is critical as more and more buyers are aware of the local weather and environment.  Lots of beautiful uplights, twinkling solar fixtures, hanging pots of flowers, walkways, succulents and desert scape with artfully located benches or conversation areas.  Entice them to stay!

It’s the green parcel at the lower part of this photo..

Is a 1031 for Investment property only?  The short answer is yes.  If you are looking to do a 1031 tax exchange when you buy or sell a property, be sure to consult and hire a 1031 exchange company and work closely with your accommodator.  There are strict rules and regulations, time restrictions and other things you must be aware of and adhere to.  If you are looking to buy or sell a property in the Coachella Valley, give local resident and agent, Kim Kelly a call at 760-285-3578.

From the IRS Fact sheet:  To qualify as a Section 1031 exchange, a deferred exchange must be distinguished from the case of a taxpayer simply selling one property and using the proceeds to purchase another property (which is a taxable transaction). Rather, in a deferred exchange, the disposition of the relinquished property and acquisition of the replacement property must be mutually dependent parts of an integrated transaction constituting an exchange of property. Taxpayers engaging in deferred exchanges generally use exchange facilitators under exchange agreements pursuant to rules provided in the Income Tax Regulations. .

(courtesy of Exchange Resources, Inc.)  Is a 1031 for investment property only?  We are regularly asked if owner-occupied or personal-use property is exchangeable. It’s important to remember that the intent of the §1031 Exchange must be specifically for property held for investment purposes. However, there are some situations where investment and personal use might conflict or even overlap.

The most common example would be a duplex, a multi-unit property, or a property with an ADU where the owner occupies one of the units.  The essential questions for the taxpayer to ask are:

• Have I been reporting a portion of the property and any income from it as investment property?
• Have I been using a portion of the property for ‘Productive Use’ in a trade or business OR renting the portion at FAIR MARKET RENT.

If YES, then that portion could be eligible for a §1031 Exchange…

This 9.7 acre organic date farm would be a great 1031 business exchange.  Offered at only $795,000!

ROI; a critical part of your investment due diligence.

ROI; Return on Investment:  There are many different types of real estate investments.  Maybe you are buying land to develop.  Maybe you are buying rental properties.  Maybe you are looking at Commercial properties.  Maybe you are looking at Short Term Vacation Rental properties, or event spaces.  Whatever type of investment interests you, the ROI, Return on Investment, should always be a part of your calculations. Local Coachella Valley resident and agent, Kim Kelly 760-285-3578.

Your return on investment (ROI) is how much money you make or lose on a property investment. It should be enough to cover expenses and have positive cash flow. ROI can vary greatly, depending on the formulas you use.

The 2% rule. This rule states that the monthly rent for a rental property should be at least 2% of its purchase price. If you paid $300,000 for your home, you should be able to rent it for $6,000, as $300,000 X 0.02 = $6,000. This figure may be unrealistic in most markets.

The 1% rule. Let’s say that monthly rents for single family homes like yours are closer to $3,000. That’s only a 1% return on your $300,000 home. Is it worth it? Yes. If you combine the costs of your first mortgage and equity loan at $240,000, and the projected monthly rent of $3,000, you’ll net $600 a month in addition to the renter paying your mortgages. $240,000 X 0.01 = $2,400. $3,000 – $2,400 = $600. $600 X 12 = $7,200.

ROI for rental properties is determined by subtracting the total operating costs from the total rental income for the year and dividing this number by the mortgage amount. Operating expenses don’t include mortgage costs, but it does include repairs, maintenance, taxes, utilities, vacancy losses, management fees, etc. $3,000 X 12 = $36,000. Monthly operating costs are $800 X 12 = $9,600. $36,000 – $9,600 = $26,400. $26,400 / $240,000 = 0.11 ROI.

ROI should increase the longer you own the property.  Take a short walk tour of the yard area of this Indio Short Term Vacation Rental that is for sale, asking $3,950,000.

Coachella Valley real estate update

Coachella Valley, especially multi acre properties are hopping!

Things are hopping here in the Coachella Valley to end 2021 and begin 2022.  Not exactly news since real estate is selling pretty much everywhere right now.  Residential listings do not sit on the market unless they’re so extremely over priced for their community that it just doesn’t make any sense for a buyer.  The most interesting thing from my perspective is all the NEW money and buyers coming into our Coachella Valley..in particular the Eastern Coachella Valley.

Our beautiful Eastern Coachella Valley cities of Vista Santa Rosa, (which is unincorporated), Indio, Thermal, Coachella and even further East are drawing a lot of investment.  The land is still relatively inexpensive, it just isn’t that “far out”, as people once thought, and the development and activities moving Easterly continue to expand.

My vacant land  listings are generating interest, showings, and sales.  The price/acre hasn’t changed much, except that any land listings that are more Westerly..meaning closer to La Quinta amenities and nearer Coachella Festival grounds, have risen.  There isn’t a lot to choose from; certainly not if the location is close to the famed Coachella Music Festival grounds and polo fields.

Some recent changes in our Eastern Coachella Valley are the following..

1. Empire Polo Club no longer will host actual polo games. Goldenvoice has leased the Empire Polo Club grounds through 2050.  They will be having events year round!
2. Eldorado Polo Club right next door to Empire is already owned by Goldenvoice, but there are currently no plans to end the seasonal polo tournaments.
3. There are several water parks planned. Not sure what stage they are in with them.
4. There is a private golf course currently under development in Thermal.
5. The Jacqueline Cochran airport has had extensive additions and renovations over the past several years.
6. Multi acre properties in the county are generating strong sales. This is mostly due to local city ordinances limiting short term rentals and events, pushing buyers to the County.

Take the tour of this incredible listing at 54250 Monroe St., Indio.  It’s 9.4 fenced, secure and gated acres a walk or bike ride away from the Coachella Valley festival grounds.  Listed at 9.5 million and generating a strong short term lease return, this property is a great investment!