Expert: Hans Weber, Licensed Broker Associate - 11/4/2005

Question
Hello again,

According to the seller agent with whom I have just spoken, it's a private runway. So it's not really an airport as we know. Even if it is, it must be a very small one. So it doesn't seem that bad. And yeah I will request the sales statistics you mentioned. One realtor advised me that this area is really really warm (a desert in San Bernardino near Palmspring) almost up to 110 during the summer, and even if it's white populated area, they are low income people that the area doesn't really have much investing value. I mentioned surrounding businesses built including car dealership and many big names and he said that's what happens always in a new town, so doesn't necessarily mean anything good. It's not necessarily a sign of booming but rather merely fulfilling what residents need. He said he wouldn't invest and also said people would eventually move to Orange County, Riverside area anyway. So that was an interesting point of view. I'll let you know more later.

Thanks.


Answer
Hi Eric,

Thanks for the update.

Sounds like the airport is more of a novelty than an issue.

Ok, check other recent sales and maybe just keep an eye on the property you want to see if it lingers on the market or comes down in price.

One thing though, rents will probably not decrease.  So, as long as the rent covers your expenses you will have positive cash flow.

Hans