Coachella Valley Real Estate By Kimberley, SFR, HAFA, GREEN
Residential, Equestrian, Land
I Do Real Estate The Same Way I Played Polo – To Win!
Coachella Valley Properties By Kimberley, SFR, HAFA, GREEN
Residential, Equestrian, Land
I Do Real Estate The Same Way I Played Polo – To Win!

Investment Properties

ROI; Return on Investment

Vacation Rental for sale in

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.

 

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Updating your house to get it ready for sale?

Indio STVR for sale

Indio STVR for sale, $3,950,000

Updating your house to get it ready for sale?  I get calls several times a day from investors, flippers, and past clients looking for investment opportunities here in the Coachella Valley.  Are you looking for an STVR?  A potential event site?  Do you have a yearning for a commercial building?  No matter what type of property you may be thinking of investing in, here are a couple things to remember.  Local agent, Kimberley Kelly, 760-285-3578.

While you may not be planning interior decor when it comes to fabrics and furniture, you are making crucial decisions including things such as flooring, lighting, tilework, moldings, paint colors, and all sorts of fixtures that could be anything from shower heads to cabinet pulls. The point is your work has a huge impact on the ultimate feel of the space, even before it’s been furnished and customized by the buyer. Making the right decisions could lead to a quicker sale, and turn a hesitant buyer into an enthusiastic one. A degree in design need not apply, and with that said, here are a few things to get you pointed in the right direction.

1.  What style is the property?  Look at the architecture, feel the vibes, don’t be mixing architectural types too much.  A little eccentric is good, a messy mash up is bad.  One of the first things to think about is the property itself. What style house is it? Traditional, Spanish, modern, etc.? Homes are typically built with a certain style in mind, whether it be contemporary or something more based in the history of the location such as a Spanish revival home.

2.  Don’t get caught up in the most current “trend.”  In the business one of the most noticeable trends is to adopt a “one size fits all” to interior design problems. This results in the grey and white interiors that have proliferated the market in recent years. A brand new remodel has unfortunately become associated with these cold, desolate interiors that ignore any identity the structure may have originally had. The last thing you want is your new investment property to end up looking like a dentist’s office.

If you are looking to buy or sell in the Coachella Valley, give a local agent an opportunity to discuss what locals and non local buyers are being drawn to.  Remodeling is important, but don’t try to appeal to every different type of buyer.  We are trying tog et as many “boots on the ground” as possible, not look for that one needle in a haystack.

This is a little walk tour of the back yard of an STVR that has just come on the market in Indio, CA.  Offered for $3,950,000.

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11 beds/8 baths on 1+ acre in Indio for sale

Indio short term rental for sale: 11 beds/8 baths

This property is a cul-d sac location with 11 beds/8 baths

11 beds/8 baths on 1+ acre in Indio for sale:  Very unusual property just listed in Indio, CA.  It’s hard to find a potential short term vacation rental so near to the Coachella Music Festival grounds, in fact, you can walk across the street and there you are!  Call local agent, Kim Kelly for a tour or information at 760-285-3578

STVR just listed for $4,100,000.  Turnkey furnished by LA based designer, Kari Harlow, everything is new and fresh.  The property, called Seraphina, was a successful 8 bedroom rental before it was purchased and construction began.  As an 8 bedroom, the property brought in over $500,000 in 2023.  The current owner, added 3 more bedrooms and 4 more bathrooms, (all permitted!), for it’s current 11 bedrooms/8 bathrooms count.  This tour below is a short walk tour of the yard, which is spectacular! 

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Coming Soon in the Coachella Valley

Land, ranches & residential in the Coachella Valley.

Coming Soon in the Coachella Valley.  Some new properties are coming up in our beautiful eastern Coachella Valley and the winter season is also coming!  I always look forward to our seasonal visitors coming back and I always look forward to the Polo season starting again.  It’s just fun to have all your friends back again, and the tournament games every weekend with all the crowds, and the real estate market gets crazy again!  If you are looking to buy or sell your Coachella Valley land, horse property or residential, give me a call at 760-285-3578.

New Listings Coming up in the Coachella Valley 2023

59105 Lincoln St.; south views over the pool!

1.  59105 Lincoln St., Thermal, CA.  $1,850,000.  This property will be active by the end of this year, and it’s worth waiting for! Situated on 2 acres, this ranch style Pool home with an elevated, south facing view over ag fields to the mountains beyond.  The permitted 6400 sf Storage garage with roll up doors is ready for it’s new owner.  Near access to the freeway and the Thermal airport, this property could be a great event site, Vacation rental, horse property, or home business.  Spectacular!!

The covered arena at Willowbrook riding Club, north Cathedral City

2.  20555 Mountain View Rd., North Cathedral City, CA. This is a one of a kind equestrian development with a CUP allowing up to 200 horses on this 40 acre property.  Direct access to Fwy 10, approx. 35 minute drive to HITS Thermal showgrounds.  5 arenas, including one covered one, a mobile on a permanent foundation + a second permitted storage shed.  Willowbrook Riding Club is an established boarding and show jumping facility.  The owners are ready to retire; what an opportunity!  Watch the video on this amazing equestrian farm..

 

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Investment farms just listed in Coachella Valley

Coachella Farm for sale

Investment Farms just listed in Coachella Valley

Investment farms just listed in Coachella Valley.  The Eastern Coachella Valley is HOT!  I’ve lived here 40 years, been a local realtor for 21, and have never seen investment farms and land parcels in such demand.  If you’re looking for commercial opportunities in the explosive Coachella Valley, don’t wait.  Leja Farms is a 35 acre date production facility.  How about a 10 acre farm in Thermal?  Call local Realtor, Kim Kelly at 760-285-3578 for more information on Land and Farms in the Coachella Valley.

Leja Farms is a 35 acre family owned date farm in a key Coachella valley location.  On the corner of 52 and Van Buren, the farm is 3 legal APN’s.  There is a hard signalized corner right by the commercially zoned northern portion of the farm.  The middle parcel is home to the date sorting/storage facility, and is zoned medium density residential.  There are two homes on the property, and approx. 1475 palm trees.

A perfect Coachella Valley Event site on 9+ acres.

If you are looking for an established luxury lease event site, I have two for you! Threethumbsupestate.com is a 9.4 acre estate located walking or biking distance from the Coachella Festival grounds.  Offered for 8.5 (recent reduction of 1 mil!), this estate offers 8 beds/7 baths and multiple event sites.  One of a kind!

 

A 10 acre farm at Deer Creek Equestrian Center being offered at $2,995,000, this equestrian farm is in a gated HOA governed equestrian community located in Thermal, CA.  This parcel features a custom adobe home of approx. 1800 sf, gorgeous pastures, a community track and polo field and only 16 parcels in total.

Take a tour of Leja Farms here..

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Coachella Valley real estate update

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!

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Empire Polo Club leases to Goldenvoice!

luxury event sites for sale

This 9.4 acre estate around the corner from festival grounds is for sale $9.5 mil

Empire Polo Club leases to Goldenvoice!  Massive changes ahead for events in the Coachella Valley.  There is no more polo at Empire Polo Club.  Quite a shock for the polo players who played at Empire Polo Club, but great news with regards to real estate here in the Coachella Valley.  Empire Polo Club is being leased to 2050 by Golden voice.

The agreement provides Golden Voice with full operational control of the venue, meaning lots more events and music happenings year round are in the future.  The agreement also provides Golden Voice and their parent company AEG with oversight of Empire Grand Oasis on Avenue 58.  Golden Voice (Desert Sun) says the agreement ensures a broader spectrum of special events, sporting events and other private functions.  Further year round investment in Indio and our eastern Coachella Valley is sure to follow.  My multi acre estates have been in huge demand this past season, and I expect even more interest with this new announcement.

10 acre equestrian farm for sale

Small farms are such great luxury event sites and STVR properties.

One of our popular event venue listings at 9.5 million is Threethumbsupestate.  Another potential event venue is Valor Farm which is a 10 acre Equestrian farm in Coachella.  Valor Farm is currently an equestrian site with 2 amazing barns, turnout paddocks, a hay barn, a remodeled 5 bedroom home, a 7 car garage with an attached sleeping lounge, and a caretaker mobile.  Take a tour of this incredible 10 acre estate that is currently available for 4.5 mil.

 

 

 

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High end market for Investors; a new home model

Small farms are such great luxury event sites and STVR properties.

High end market for investors; a new home model.  What’s left as far as a manner remaining to capitalize on the Coachella Valley real estate market?  With all the recent law change proposals for Short term vacation rentals, and luxury event site rentals, what’s next???  Call local realtor, Kim Kelly at 760-285-3578.

There is a one year old 1.5 billion company named Pacaso that is buying high end Coachella Valley homes and selling shares in them to investors.   Pacaso, (according to the Desert Sun) has bought properties in Palm Springs, Palm Desert, Indian Wells and La Quinta.  The idea is the now buyers who want a second home in the Coachella Valley, can now buy a 1/8 share of a luxury home.  If Pacaso does succeed, the company will probably be followed by others looking to cash in on this form of fractional home ownership.

Sound like a timeshare??  Does to me also.  Timeshares are banned in many areas of the Coachella Valley, and as we have all read, one of their prime problems is that an owner will find it very difficult to sell their time.  Pacaso categorically rejects this notion.  It says that it’s homes’ shareholders are buying shares in real property, not useage rights.  It remains to be seen how this fractional ownership will eventually be classified and if it can expand through our Coachella Valley.  In the meantime, take a tour of this lovely small farm that is for sale in Thermal, 20 acres, $1,775,000.

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Inflation Cools a bit

Farm for sale in Coachella Valley

Investment Properties in the Coachella Valley range from homes, to farms and vacant land!

Inflation Cools a bit and consequently here in the Coachella Valley as everywhere else, mortgage Rates decline just a bit.  With the inventory already low, the reduced Mortgage rates will certainly drive buyers to our beautiful desert!  The following article is courtesy of Brad Tilford, with Franklin Loans, a local lender that can get your loans done!  Call local Realtor, Kim Kelly, if you are thinking of buying or selling your home, land or Equestrian property.  760-285-3578.

Inflation Cools, Mortgage Rates Decline

Overview: Over the past week, investors were mostly focused on the latest inflation data. The reading came in weaker than expected, and mortgage rates ended the week a little lower.
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The Consumer Price Index (CPI) is a closely watched inflation indicator that looks at the price changes for a broad range of goods and services. To get a better sense of the underlying long-term trend, investors generally prefer to look at core CPI, which excludes the volatile food and energy components. In August, core CPI rose 0.1% from July, which was less than expected. On an annual basis, core CPI was 4% higher than a year ago, a very high figure by historical standards. However, this was down from an annual rate of increase of 4.5% in June, a level not seen since 1991. Since inflation is negative for mortgage rates, this lower-than-expected data caused rates to decline.

The Department of Labor releases the total number of new claims for unemployment insurance each week, and the latest reading was 310,000, the lowest level since March 2020. This was down significantly from the inflated figures seen during the early months of the pandemic, but still well above the readings around 220,000 that were typical during 2019.

As expected, the European Central Bank (ECB) announced at Thursday’s meeting that it will reduce its bond purchases, but it did not specify by exactly how much. Rather, the meeting statement said that it will proceed with a “moderately lower pace” of net asset purchases. While the U.S. Federal Reserve has not yet begun to scale back its bond buying program, it is expected to do so before the end of the year.

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Luxury Event Site in Coachella Valley

Enjoy the views at twilight at 52450 Monroe St., Indio, CA.

Luxury Event Site in Coachella Valley.  52450 Monroe St., Indio, CA. is a 9+ acre, gated, exclusive site that is unlike any other in the Coachella Valley.  Listed for sale for $9,500,000, the manicured grounds are hidden behind wrought iron gates, just down a dirt road, off Monroe St.  Location is everything and ThreeThumbsUpEstate, is a bike ride from the Coachella Festival grounds, and approx. 5 minutes from Old Town, La Quinta.  Now being offered by a renowned Coachella Valley Lease company for Events and Daily or weekly rentals.

A new Luxury Event Site is being offered for rentals and events at 52450 Monroe St., Indio, CA.  The property will continue to be marketed for sale at $9,500,000, but until it sells, it is available for bookings.  Avantstay, a luxury lease management company in the Coachella Valley, is managing the rentals and leases.  The annual projected income for this incredible property is well into the upper 6 figures.  With 4 homes, a 12 stall barn, lake, pitch n putt golf course, gorgeous orchard and friendly Asado pit area, this property is incredible!  Take the tour below.

 

 

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