Investor · Montrose, CA · Member since 2011 · 5 posts · 6 votes
Hello all,
We are considering investing in a vacation rental in the Coachella Valley. Ideally, we'd like to get as much occupancy year around but definitely to get the high rents for the music festivals and other events. We have been looking at Indio and LaQuinta. Any thoughts on any part of STRs in the Palm Springs greater area would be appreciated. Thanks!
Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
10y
I bought a big estate in south Indio in March (8 bedrooms, sleeps 26, on 2 acres) as a vacation rental, and just got a (more conventional) 2700SF place under contract in Indio as well. Also recently purchased a 6-plex in Palm Springs as a vacation rental. If you ever want to compare notes @Clifton Sheng let me know. Places close to the festivals command much higher rates during the festivals, but much lower rates/occupancies the rest of the year (unless they are super special or unique in some way). La Quinta has a bit better balance and occupancy the rest of the year, and there's some reasonably priced in the Cove.
Ft. Lauderdale, FL · Member since 2017 · 64 posts · 22 votes
8y
Not that this is overly relevant but I was just at Coachella 1. We paid $13,000 for 4 nights about 1.5 miles from the venue. That was a bargain compared to the other place we wanted at 25k for the same time. The owners of the Airbnb rent it three weekends a year for both Coachellas and Stagecoach. I asked around and their property was about 600k. You can do the math.
Ft. Lauderdale, FL · Member since 2017 · 64 posts · 22 votes
8y
The house we rented was on Pomegranate in the Orchard. There were 4 bedrooms in the house and very small in-law type suite as you walked up to the side. Id guess it was about 2000 sq ft. The other unit was 6 bedrooms but I only ever saw pictures. Demand was high, even at that pricing it was tough to get.
Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
8y
I'm happy to chat numbers in the area, if anyone has any specific questions. Rental rates for Coachella are on the decline (in particular for Week 2) as rental inventory close to the festival has increased significantly over the last year or two, while demand is ballpark flat. An investor in the area that has far more properties then I do near the Polo Grounds threw out a 30% year-over-year decline for his properties during the festivals this year, which strikes me as ballpark accurate.
I am making less then my original forecasts on festival bookings, but we are making more during the rest of the year then I anticipated. I expect another drop in festival rental rates this coming year, as rental inventory in the area continues to increase.
Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
8y
The increase has been primarily in Indio and La Quinta. PD is sunsetting R1 vacation rental licenses (assuming no change to the current plan) and inventory is I assume shrinking there.