Desert Hot Springs, CA

This loan is a first deed of trust on a four-unit residential income property in Desert Hot Springs, CA. Located in Riverside County’s Coachella Valley, just north of Palm Springs, Desert Hot Springs is known for its natural hot mineral springs, scenic mountain and desert views, and relatively affordable real estate. The community offers a mix of single-family residences, multifamily properties, and investment opportunities, with convenient access to Interstate 10 and the greater Palm Springs area. The subject property, located at 66365 5th Street, is a four-unit residential investment property situated on an approximately 13,068-square-foot lot. Originally constructed in 1948, the property contains approximately 3,293 square feet of living area, with a total of six bedrooms and six bathrooms. The unit mix consists of two one-bedroom, one-bathroom residences and two two-bedroom, two-bathroom residences, ranging from approximately 716 to 1,122 square feet. The property is rated C4 condition, reflecting average overall condition, with no immediate repairs or significant functional or economic obsolescence noted by the appraiser. Since acquiring the property in 2017, the Borrower has completed several improvements, including updates to kitchens and bathrooms. The property is currently income-producing, generating approximately $5,572 in monthly rental income, compared to an estimated market rent of $5,745 per month. Existing rents are reportedly below market due to long-term tenancy. The property was appraised at an “as-is” market value of $630,000 as of August 31, 2026. The purpose of the loan is to refinance the existing mortgage and facilitate the buyout of an existing partner. The Borrower will contribute additional cash at closing to complete the partner buyout. Upon maturity, the Borrower intends to refinance the property and continue holding it as a long-term investment. The loan will have a maturity of 24 months.