Any Palm Spring Deals Out There

8 Replies

Hi BP community!!

Ive posted a few times now in the forums, but I am still trying to find my feet. Ive caught the bug, and can not stop thinking about getting that elusive first deal. I know that the current market in southern California isn't necessarily ideal for novices, but its what Ive got to work with. I live in north county San Diego where property is hot! which is why Im looking for opportunities elsewhere. Are there any investors in the Palm Springs area that are willing to give me some insight into what the long term rental demand is there? There seem to be some opportunities to purchase some cashflow positive properties, I just have no idea what the demand is there for  rentals...

Hey @Jeremy Leech welcome to the BP community.

I live in Palm Springs. Properties are definitely less expensive out here than the San Diego area. However, Palm Springs does not have many multiunits, what really works works here for cash flow and what most investors have are vacation rental properties. The returns can be great if you own a Vacation rental property. A few years ago people would just rely on the big events such as modernism weekend ( now there’s two full weeks of this), Coachella, stagecoach, oldchella, etc but now it’s becoming an all year spot for tourists.

I hope this helps! Message me if you have any other questions.

There's a really good REIA out there that you should go to and I'm sure you can get a lot of answers. It's run by Larry and Janet French and I think it's called the Coachella Valley REIA.

@Albert Melo thanks for the insight! It is greatly appreciated.  I will do more research about owing vacation rentals. Do you own vacation rentals? I would imagine that they are a little bit more hands on the traditional long term rentals... Looking forward to hearing back!

@Bruce May Thanks! Definitely going to check it out. I see your a hard money lender in San Diego. Where are you located? Do you work with many novice investors?

Originally posted by @Jeremy Leech :

@Albert Melo thanks for the insight! It is greatly appreciated.  I will do more research about owing vacation rentals. Do you own vacation rentals? I would imagine that they are a little bit more hands on the traditional long term rentals... Looking forward to hearing back!

@Bruce May Thanks! Definitely going to check it out. I see your a hard money lender in San Diego. Where are you located? Do you work with many novice investors?

 Jeremy, we lend across Southern California. I'm responsible for San Diego County and I work mostly from home in Oceanside. Yes, we work with novice investors all the time so let me know when you'd like to talk about a loan.

I have 10 residential lots in 29 Palms right by Joshua Tree National Park. I'm interested in either selling them or developing them as rental homes due to the Marine Base.

@Jeremy Leech , I live in Carlsbad and researched Palm Springs awhile back. The conclusion I came to was while the price of real estate is more affordable, there were too many cons to pursue. Such as

- seasonality of STR - no one wants to go to Palm Springs when it is 100+.
- distance from my residence - far drive to fix things or hire local management, which eats into profit.
- high utility costs due to heat - I know residents in Palm Desert and they tell me of their high utility bills. This also eats into your profit.

Look local. There is 999 N Pacific in Oceanside and a few other locations coastal that may perform better year around as a STR.

I own a STR in Carlsbad Village, a 1 BR condo that I rent out on AirBnB and VRBO, self managed.

@Nick Foster Thanks for the info. My office is in the heart of Carlsbad Village. How'd you like to get together for a cup of coffee one of these days? Im out of town for the next two weeks but when I'm back that would be great!

@Bruce May Will do! id love to hear about the details 

@Jacqueline Carrington Can you send me the details? I don't think I'm necessarily a "player" for those right now but would love to see your analysis to get a better idea of possibilities in the area.

@Nick Foster Our STR occupancy is higher during the summer when it is 100+ degrees then the year year-long average (although rates are lower), kids are out of school and lots of families are vacationing. If you head towards La Quinta, Bermuda Dunes, Indio, etc. IID power is significantly less expensive.

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