Anyone invest in Cathedral City, CA?

Question

I found 2 potential deals (both duplexes (3bd/2bth)); HOWEVER, I know the analysis is too good to be true...specifically the estimated rental income.  Just found out that one of the duplexes rents for $1,600/month.  Rent estimations say $3,600/month.  I know I'm new to the game but that's a HUGE discrepancy.  I tried seeing what other similar units rent for in the area but there aren't any available.  A single family home does rent for around $2,500-$3,500 but again that's a different property type (not sure how much that matters).

So I figured I'd reach out the the BP community to see if anyone has any experience in the area.  What's a realistic rental income for Cathedral City (right next to the Palm Springs city border)?  Also, I do know it's mostly blue collar workers but are they mostly decent tenants (i.e., don't take advantage of eviction moratorium)?  Just looking for more market research info on the area.

Thanks!

Shane Zuspan · Answer

@Josh Yamada Cathedral City isn’t issuing new stvr permits and grandfathering existing stvrs until 2022, exception being if your HOA allows it.  But long term rentals are strong across the whole valley.

Josh Yamada · Answer

Initially got it from biggerpockets rent estimator, but I think it was looking at 3/2 Single Family Homes.  What are some of those nicer neighborhoods in the Coachella Valley?

Josh Yamada · Answer

Yah, $1800 - $2500 is more what I would expect.  Thanks!  Is the Coachella Valley more ideal for short term/seasonal rentals than long term?

John D. · Answer

Where did you get the $3600 rent estimate?  Where exactly in Cat City is this?  There are some really nice neighborhoods and some really modest ones you might not want to talk around in at night.  The difference in rents between the two can easily be 2x.

Shane Zuspan · Answer

Yeah, that $3600 is high and may be pulling short term rental data. $1800 - $2500 would be my estimate. You could get that $2500-$3500 for short term or if it's larger or better amenities than a typical 3/2, 1600sqft home over there.