Has anyone purchased in PALM DESERT?

Question

Looking in this area for a single family home or multi-unit to rent. Anyone have any comments/concerns about this city? Besides that it is too hot :)

Travis Moe · Answer

I have one SFR in Palm Desert CC.

Cash flowing at 80% LTV or greater is difficult on anything on the MLS unless you're going for something with a lot of added value. Be careful when using things like Zillow or Rentometer to estimate rent. The area is highly seasonal. So the rents get skewed by seasonal rents - i.e. snowbirds that come down and rent for just 3 months at $5K/month on a property that would rent for $2,225 on a 12 month lease. Get an agent to give you good sales and rental comps (if you aren't an agent).

They just passed a restriction on short term rentals. All AirBNB/VRBO style operators will require a business license, but they are no longer issuing any more licenses. All current licenses will expire 12/31/2019. So be careful if you plan to do any STR as part of your strategy. There are areas that have special variances, but you'd need to research that well.

Palm Desert has some of the best rated schools. Carter, Washington Charter, PD High School, and Gerald Ford are all popular schools with good ratings.

I'm not a veteran investor, but I'm a local resident. If you have any specific questions, message me and I'll try to help out. I can also recommend agents, lenders, etc.

John D. · Answer

I own a vacation rental in Palm Desert, as well as a handful of other properties in neighboring cities.  If you have any more specific questions, happy to answer them.  There are still some vacation rental options for properties with specific zoning, as well as some cash flow positive higher-end seasonal rental opportunities.  I have 2 excellent realtors if you are looking for a referral (one that knows more about the existing vacation rental ops, and one that's better at higher end seasonal rental opportunities),