Rental Property Investor · San Francisco, CA · Member since 2020 · 78 posts · 23 votes
I am wondering if the Joshua Tree market is still worth investing. Currently there are numerous active rentals on the market based on AirDNA market overview. Additionally, the median sold price has significantly gone up. Any recommendations would be appreciated.
Real Estate Agent · Pasadena, CA · Member since 2017 · 274 posts · 255 votes
4y
You have to be very careful with where you buy in 29 Palms. There is a large area north of the 62 that has massive dust clouds on windy days that blow over from the dry lake bed in Joshua Tree.
Investor · United States · Member since 2020 · 202 posts · 284 votes
4y
It really depends on your goals, investment style, and cf target. 29 seems to have lower prices than the surrounding areas and therefore more cashflow potential, but it seems like a market that makes the most sense for a value add investor who is willing to do a renovation and nail it with design. Many of the great properties were bought up over the last few years, so what's left are more vanilla homes on average that make good canvases for creativity, but likely won't perform well as-is. Very different than more developed/ long-standing STR markets like the Smokies or Florida beaches where there are more turn-key properties available to buy (not saying you can't value add in these markets - you obviously can - but they are just more developed than JT). I do think there is A LOT of competitive intensity in JT in terms of design - lots of young energy from LA, etc. buying up homes and breathing creative flare into the area … so it's hard to be a big fish and stand out like you could in almost any other market. I'm amazed at JT though, it's SO cool to see the crazy stuff people are creating out there. Definitely taking notes, as I hope to take cues from there and apply in some of the other markets I'm looking in.
there were some great ramblings about JT in this post 👇🏻👇🏻👇🏻 could be a starting point for you to network w some investors in the area as well
Investor · San Jose CA · Member since 2018 · 114 posts · 73 votes
4y
The best properties are the ones that are designed the best in JT. Dont buy a regular home and list on Airbnb, you wont do well in my opinion. JT is the land of "creativity" and "no rules". If you don't plan to make the Airbnb unique, then its gonna be hard to compete. Check out the post that @Sean Bramble posted above - we have a good discussion about this topic.
Real Estate Consultant · Glendora, CA · Member since 2019 · 314 posts · 95 votes
4y
29 palms may be the next area for you to explore. Newer retail & commercial development is underway. One thing to keep in mind, the city is implementing a limit on how many STR. 5% of total households can operate as an STR.
It really depends on your goals, investment style, and cf target. 29 seems to have lower prices than the surrounding areas and therefore more cashflow potential, but it seems like a market that makes the most sense for a value add investor who is willing to do a renovation and nail it with design. Many of the great properties were bought up over the last few years, so what's left are more vanilla homes on average that make good canvases for creativity, but likely won't perform well as-is. Very different than more developed/ long-standing STR markets like the Smokies or Florida beaches where there are more turn-key properties available to buy (not saying you can't value add in these markets - you obviously can - but they are just more developed than JT). I do think there is A LOT of competitive intensity in JT in terms of design - lots of young energy from LA, etc. buying up homes and breathing creative flare into the area … so it's hard to be a big fish and stand out like you could in almost any other market. I'm amazed at JT though, it's SO cool to see the crazy stuff people are creating out there. Definitely taking notes, as I hope to take cues from there and apply in some of the other markets I'm looking in.
there were some great ramblings about JT in this post 👇🏻👇🏻👇🏻 could be a starting point for you to network w some investors in the area as well
The best properties are the ones that are designed the best in JT. Dont buy a regular home and list on Airbnb, you wont do well in my opinion. JT is the land of "creativity" and "no rules". If you don't plan to make the Airbnb unique, then its gonna be hard to compete. Check out the post that @Sean Bramble posted above - we have a good discussion about this topic.
Thanks for the information. I went through the discussion and found all the information valuable. I read about your unpleasant experiences in San Jose area. Sorry for that. I live in San Francisco area and it is hard to find a decent STR market in northern California. Lots of restrictions.
29 palms may be the next area for you to explore. Newer retail & commercial development is underway. One thing to keep in mind, the city is implementing a limit on how many STR. 5% of total households can operate as an STR.
Real Estate Agent · Pasadena, CA · Member since 2017 · 274 posts · 255 votes
4y
You have to be very careful with where you buy in 29 Palms. There is a large area north of the 62 that has massive dust clouds on windy days that blow over from the dry lake bed in Joshua Tree.
29 palms may be the next area for you to explore. Newer retail & commercial development is underway. One thing to keep in mind, the city is implementing a limit on how many STR. 5% of total households can operate as an STR.
Thanks for the info.
The accurate cap is 12% of the total housing stock.
You have to be very careful with where you buy in 29 Palms. There is a large area north of the 62 that has massive dust clouds on windy days that blow over from the dry lake bed in Joshua Tree.
That also true for north end of YV through Landers?
I cant believe the stumps is a destination. I was stuck in that dust hole for 2 years in the USMC and couldn't wait to GTFO.
Never been to that area and can't speak to that. Thanks for your response
There used to be 29 Palms there, but after decades of the US Army using it as an ordinance use and testing site, now there are only stumps.
When the Army declared it uninhabitable, the Marines called it home. Nothing but dust and stumps the Army won't touch but apparently a vacation destination. Enjoy!
29 palms may be the next area for you to explore. Newer retail & commercial development is underway. One thing to keep in mind, the city is implementing a limit on how many STR. 5% of total households can operate as an STR.
Thanks for the info.
The accurate cap is 12% of the total housing stock.
No more than 500 short-term home rentals will be allowed in city limits in a cap approved unanimously by the City Council Tuesday, May 10. The council will keep that cap on vacation rentals until after results of the 2030 census are released.
29 palms may be the next area for you to explore. Newer retail & commercial development is underway. One thing to keep in mind, the city is implementing a limit on how many STR. 5% of total households can operate as an STR.
Thanks for the info.
The accurate cap is 12% of the total housing stock.
No more than 500 short-term home rentals will be allowed in city limits in a cap approved unanimously by the City Council Tuesday, May 10. The council will keep that cap on vacation rentals until after results of the 2030 census are released.
29 palms may be the next area for you to explore. Newer retail & commercial development is underway. One thing to keep in mind, the city is implementing a limit on how many STR. 5% of total households can operate as an STR.
Thanks for the info.
The accurate cap is 12% of the total housing stock.
No more than 500 short-term home rentals will be allowed in city limits in a cap approved unanimously by the City Council Tuesday, May 10. The council will keep that cap on vacation rentals until after results of the 2030 census are released.
Are there any zoning plans? Does it apply to the entire city or to a certain area? Do you know if they already issued the 500 STR licenses yet? It is my understanding that tourism is the main source of income of the local people. Not clear what are they trying to achieve by putting a limit. Zoning would be a more reasonable approach to me.
29 palms may be the next area for you to explore. Newer retail & commercial development is underway. One thing to keep in mind, the city is implementing a limit on how many STR. 5% of total households can operate as an STR.
Thanks for the info.
The accurate cap is 12% of the total housing stock.
No more than 500 short-term home rentals will be allowed in city limits in a cap approved unanimously by the City Council Tuesday, May 10. The council will keep that cap on vacation rentals until after results of the 2030 census are released.
Are there any zoning plans? Does it apply to the entire city or to a certain area? Do you know if they already issued the 500 STR licenses yet? It is my understanding that tourism is the main source of income of the local people. Not clear what are they trying to achieve by putting a limit. Zoning would be a more reasonable approach to me.
Yeah there has been pushed back by a couple local groups same on NIMBYism that goes into a lot of these short term rental market based on the article it looks like there’s about 386 total active and pending I don’t know if this is going to get appealed or not but there are some hotels going into the area I wouldn’t be surprised if they had something to do with putting on that limit. There has already been a ton of push back to up that limit. We’ll see where it goes.
You have to be very careful with where you buy in 29 Palms. There is a large area north of the 62 that has massive dust clouds on windy days that blow over from the dry lake bed in Joshua Tree.
That also true for north end of YV through Landers?
No. The entire high desert has windy days but only 29 Palms gets the massive dust clouds.
You have to be very careful with where you buy in 29 Palms. There is a large area north of the 62 that has massive dust clouds on windy days that blow over from the dry lake bed in Joshua Tree.
That also true for north end of YV through Landers?
No. The entire high desert has windy days but only 29 Palms gets the massive dust clouds.
Thanks @Jason Kudo your intel is much appreciated!
Specialist · Member since 2022 · 6 posts · 2 votes
4y
Hi all, this was a super helpful post. Thanks @Sean Bramble and @Michael Hyun for sharing the discussion link above.
My husband and I were hoping to purchase an STR in the 29 palms area, but after reading about the 500 permit cap, we are now second guessing. We had hoped to purchase an SFH with an ADU - in hopes to live in the ADU and rent out the main unit. Is there anyway to know the current number of permits that have been issued? Is buying in the 29 palms area even advisable with the permit cap?
Hi all, this was a super helpful post. Thanks @Sean Bramble and @Michael Hyun for sharing the discussion link above.
My husband and I were hoping to purchase an STR in the 29 palms area, but after reading about the 500 permit cap, we are now second guessing. We had hoped to purchase an SFH with an ADU - in hopes to live in the ADU and rent out the main unit. Is there anyway to know the current number of permits that have been issued? Is buying in the 29 palms area even advisable with the permit cap?
Thanks so much for any advice in advance.
It's tough to say, on one hand if you can get an accurate count of permits both active and pending by calling the city, and figure out if with your timeline you could get an application in before the threshold is met then you have an instant moat on compitition in the area as it continue to develop. On the other hand it's always a risk. In other markets that don't have a cap you risk the over saturation which can bring down ADR and occupancy. I personally think it will get repealed.
Specialist · Member since 2022 · 6 posts · 2 votes
4y
Thanks so much for suggesting to call the city re: current permit numbers @Chris Carr. If we decide to move forward here, we will definitely be calling them for up-to-date numbers.
I sincerely appreciate your insight. The more I am reading about the future development in the area, the more I am eager to follow through with our plans to invest there. thanks again!
Thanks so much for suggesting to call the city re: current permit numbers @Chris Carr. If we decide to move forward here, we will definitely be calling them for up-to-date numbers.
I sincerely appreciate your insight. The more I am reading about the future development in the area, the more I am eager to follow through with our plans to invest there. thanks again!
Natalee, at last count which was a few days ago, I believe they had 60 available permits left. You will definitely want to call to confirm before moving forward with a purchase in Twentynine Palms if intending to use as an STR and find out how many permits they are issuing a week.
Thank you so much for the update here! Appreciate you reaching out with this information. We will definitely make sure to call and confirm the number of permits they are issuing per week.
I was just about to reach out to you via DM. We'd love to chat with you about investing in the area, if you're willing and able. I will reach out to you shortly! Thanks in advance!
You have to be very careful with where you buy in 29 Palms. There is a large area north of the 62 that has massive dust clouds on windy days that blow over from the dry lake bed in Joshua Tree.
Thanks for the tip Jason - which area is this exactly, the "large area north of 62"? And are there specific seasons / times of year where this happens more frequently?
Looking at a few properties, but would like to avoid this area. can already imagine the Airbnb reviews 😅