Pool installation: Resale value/ROI - plaster vs. pebble tech?

Question

I'm adding a pool to a property. It is a triplex in Palm Springs that we are either going to flip or hold and rent.  My partner and I have been trying to decide whether we should go with plaster or pebble tech. I know pebble tech is much more durable in the long run (and more expensive), but will we see a ROI when we sell our property? Any input would be much appreciated! Thank you for your time in advance.

John D. · Answer

What's the difference in cost of pebble vs. plaster?  Last quote I got it was only a 20% or so cost difference, in which case I would definitely go pebble.  The savings is only ~$1,000 or so for surfacing cost, if you choose a reasonable color pebble.

Assuming PS doesn't ban R1 rentals on June 5th, a vacation rental may be a very viable strategy.  The multi-family ban that is in place currently only impacts 4+ unit properties.

I'm going to respectfully disagree with Nathan, I think you can get enough of a premium in rents with the pool to justify keeping it.  It also keeps the door open for monthly furnished seasonal rentals which are high demand and may net you more then long term.

Jimmy Dudley · Answer

My advice don't put in a pool. If you buy a rental property with a pool, fill it in. Talk to some attorneys about litigation surrounding pools.

John Gornik · Answer

Hey Nathan,

Thanks for the feedback! Yeah, I see where you are coming from. We would mainly rent it out during peak seasons and then use it as a vacation home for myself, unless we sell it.

Why would Airbnb be out of the question? I'm just curious. In Palm Springs you can rent a property out 32 times throughout the year, which in our situation that would be ok as we are not buying to be a big money maker... more pay for itself and we can use as a nice vacation home with pool.

John Gornik · Answer

Hi Thomas,

Yes, but have you been to Palm Springs in the Summer... or any time of the year? It gets up to 120 degrees! haha so pool are usually a necessity! We would mainly rent it out during peak seasons and then use it as a vacation home for myself. But I do agree pools can definitely be a liability issue, especially if people are drinking or have children...

John Gornik · Answer

Hi Shane,

Thanks for the feedback! I completely agree with your statement - "If new then I think the “new pool” feature trumps the plaster/pebble in a buyers mind - it’s new and clean." I really appreciate it.

Nathan Diones · Answer

I would go with the pebble tech however, pebble tech or plaster, I wouldn't expect to get anymore ROI out of the pool than what you put into it.   We have represented numerous Buyers within Palm Springs MSA and all of southern California and they frown on pools in apartments of 4 units or less.   Additionally since AirBnB is nearly out of the question for your triplex in Palm Springs, I would have to look at this from an investor side and see the pool as nothing but a monthly expense and additional insurance premium.  The pool doesn't necessarily bring any additional income.   With the current shortage of rental units available within PS and Coachella Valley area, you could get premium rents without a pool and the additional expenses and liability it carries.

Thomas S. · Answer

For liability reasons a rental should never have a pool. The only way I would invest in a rental with a pool would be if I bought at a reduced price and filled the pool in.

No way I would take on the liability risk of a pool with tenants.  In my opinion a pool would devalue a income investment property.