STR - Big bear lake vs Palm Spring vs Lake Arrowhead

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STR - Big bear lake vs Palm Spring vs Lake Arrowhead

Nadia O.
Member since 2020 · 82 posts · 100 votes

We have been thinking of purchasing a property either on Palm Spring, Big Bear Lake (Moonridge), or Lake Arrowhead.

Big bear lake seems to be our #1 choice since the city is more friendly towards STR. The homes in moonridge have increased significantly. Not sure what's going on there. but there have been multiple bidding wars going on in snatching almost every property lisitngs within the hour. We don't want to overspend money since our mainly interest is to gain high ROI. so we are cooling off the search for now.

Lake arrowhead is beautiful. However without lake rights, is it even worth it purchasing there? this will be our first purchase strictly for STR so we want to make sure the ROI will be the highest.

I'm aware that Palm Springs have many restrictions towards STR. plus many residents seem to want to ban STR. should we even consider the area then? any suggestions of other surrounding areas that we should even consider?

I used to own an airbnb rental in Orange County until the city pretty much shuts down all of us.


Hope to hear some of your feedbacks. thanks
 

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JJ P.
Real Estate Agent · San DIego · Member since 2019 · 177 posts · 185 votes
5y

I can speak to Big Bear. We owned and visited Big Bear for many years, decades actually. We were in BBC, close to the airport and some restaurants, etc. There are many, many small cabins in that area that serve as vacation homes and STR. From BBC, Baldwin Lake or Moonridge, you can walk to the forest but not the ski slopes or downtown. Big Bear has always been a tourist area. Peak season is winter, but lack of snow can have a big negative draw on tourism, as people think skiing when they see the snowcapped peaks from home in downtown LA. There was something like 100% occupancy over Thanksgiving and the Christmas/New Year holiday, and, back then, a lot of vacancies in between.

 Year round rentals don't have much demand and there's not a lot of employment unless you go "down the hill" for work.  That's a 2-3 hour r/t commute, so most people don't do it.   What's left are B & C type long term renters overall.  Retirees buy there, tourists visit there, people own long term 2nd homes there,  and a LOT of marginal people escape there.  

If you're hands off, I'd say branch out to a place that isn't already overrun with STR and where the restrictions are lax or non-existent. Look for a niche. A nice property that stands out- hopefully due to location and a lovely setting. Decorate it beautifully, perhaps in theme, and stock the kitchen nicely. A little hole in the wall gem with a pretty view and a small town feel might do far better for you than being one of hundreds and a worn out STR welcome from the locals. If I were hooked on the Mt/desert regions of so Cal, I'd look slightly further afield. Joshua Tree, maybe. Pioneertown? Lucerne Valley? Spring Valley Lake on the backside? Pinon Hills up against the mountains? Idywilde? Julian? The old areas of La Quinta? I don't have a feel for these areas currently as STRs, but perhaps one of them might work for you. The price points are better and that will give you a little leeway with your cashflow while you build your business. You are building a business, hopefully with gushing reviews and repeat customers, but it all takes time.

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  • Nadia O.
    OP
    Member since 2020 · 82 posts · 100 votes
    5y

    @John D. absolutely! It's all about having that positive cash flow. Personally if I'm buying another property, it will be for LTR or STR purposes. And throwing over asking bid in an already super inflated market, it doesn't put me in a good position. As an investor, I cannot get my emotions the best of me. I'm simply buying to make money. And as for now, I haven't find the deal in California that can bring positive cash flow yet...at least not places that I loooked at. Now I cannot say about different states. Sure I can probably get a bigger home for cheaper price. But that's not my target area.

    Again this is my personal position in this pandemic situation. And I can assure my money isn’t seating in sideline doing absolutely nothing. It is invested highly in the index, stocks, crypto 😆 ....the list goes on.

    1Reply
  • John D.
    Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
    5y

    I've found that with my short-term rentals, it doesn't matter all that much if the property now costs 20% more then it did a year or 2 ago. Call the price inflated if you will, but because the interest rate I am paying is significantly lower, and since the margins are fat on good rentals, I'm happy to pay the inflated price. The effective impact on my bottom line is pretty small. Paying $600k for a property today that would have cost say $500k two years ago, my rate of return doesn't drop much despite the fact that I am paying a lot more for the property. Roughing this scenario out, I might make a 38% COCR buying the property today at $600k, vs. a projected 40% COCR paying $500k for the same home 2 years ago. The large increase in purchase price doesn't take much of a bite out of the bottom line given the change in interest rate environment.

    3Reply
  • Zachary Beach
    Specialist · Los Angeles, CA · Member since 2018 · 291 posts · 231 votes
    5y

    @Nadia O. I agree with John with STR's it's a lot more about how much it cash flows at the price you are buying at then the 20% chance you could buy it for5% less in 2 years. With properties I have in Big Bear if you could buy 25% down with 4% interest rate at market value and if the market valued the properties dropped 5% and rents dropped 20% you would still makes 48% return on investments in two years. If it went up 5% and rents stayed the same the return would be over 120% in two years. You makes money in real estate by adding value not buying low

    1Reply
  • Hengky Lim
    Investor · Santa Clarita · Member since 2019 · 14 posts · 13 votes
    5y
    Originally posted by @JJ P.:
    Originally posted by @Nadia O.:


    @JJ P. so did you buy this year?

    Yes, we moved assets from high priced San Diego to the lower priced Oregon Coast, to add a little diversity to our portfolio and finally scratch that "out of state investor" itch.  Plus we landed in an area that we want to spend some time and got a lovely second home for ourselves.   In total,  we bought 4 Single Family, LTRs over the summer of 2020 in a low key (not so much "up and coming") area that offered good dollar for dollar value for us.  They are rented and doing great. You can read about those in the Oregon forums.  

    I understand the trepidation about making a move in an up market. Everything is up, as you know. The Case-Shiller report said some markets, including San Diego, were up 10% in December. It could be a bubble, but who knows?  I think if you do your due diligence, and buy a good property where the numbers make sense, there's no time like the present.   If you wait, you might have better chances, or you might have worse chances.  You'll only know that when the future arrives.  But if you take a chance now, maybe make some money for a while because the numbers work with the data that you have available right now, then in 3 years everything tanks and you take another chance and buy the dip.  Then you took two chances and now you have two houses.  

     In my opinion, the biggest mistake you can make in wealth building is to wait.   Sitting on the sidelines is what keeps people from building wealth. Why?  Because  Time is the magic fairy dust that makes  people rich.   The only houses that I really regret are the ones I didn't buy or the ones I sold instead of keeping.  We turned down several in 2012 because they were a mere $7500 over what we felt was fair market value.  Not all of our houses were home runs, some were duds the day I sold them.   But the duds would have been superstars if I still had them today, with the magic of time, inflation, population growth, etc. 

    My Grandma's first house was a mile from the beach in Hermosa Beach, CA.   It was $16,000.   She didn't want to buy it because it was so expensive.  She almost backed out but Grandpa insisted.   Needless to say, 30 years later that was the best thing she ever did with her money.  

     Wow man, I love your opinion

    "In my opinion, the biggest mistake you can make in wealth building is to wait. Sitting on the sidelines is what keeps people from building wealth. Why? Because Time is the magic fairy dust that makes people rich. "

    It hold true for properties we bought in the past. We even bought in two properties in Vegas with upcoming market within last month because sitting on the sideline just does not make sense for us no more. The magic fairy dust ~ my daughter love this one lol

    I've been to BB for number of times.. almost bought a hotel there. It could be a better investment compared to PS and LA. It is more of a all year round tourists destination compared to PS or LA. However, everyone has they own niche to make money in RE.  Staying focus may help and as long as the deal make sense that it is a good deal than waiting on a sidelines.

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  • John D.
    Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
    5y

    @Zachary Beach you write "You make money in real estate by adding value not buying low".  Sounds like you and I are similar and plan on making money primarily by adding value and finding/creating opportunities where rents far exceed costs.  There are lots of people who make most of their money off appreciation though, theoretically for those folks by definition they are trying to buy low sell high.  Different strategy.


    1Reply
  • Zachary Beach
    Specialist · Los Angeles, CA · Member since 2018 · 291 posts · 231 votes
    5y

    @John D. I categorize the price you buy below current market value, market appreciation, forced appreciation, and cashflow all as different ways to make profit in real estate and I probably didn’t explain my statement to well as I have personally makes hundreds of thousands from each of the four things I stated in the last couple years. My real point is that not getting a price supper far below market value and missing out on all the other ways that real estate makes money isn’t something I would recommend. I do recommend getting real estate that makes you money no matter what way the market goes.

    0Reply
  • Vatche Ghanimian
    Member since 2021 · 2 posts · 0 votes
    5y

    Hi everyone, I am new here and truly loving the conversation! Family invested big in 2011 and it paid off. Doesn't mean we stop looking. I want to do something on my own. I was looking into La Quinta. After doing some research I found La Quinta is the most safe with STR. What's most appealing to renters in these areas? Location? Size? Privacy? Not a lot of options in the 400-600k range with no HOA.

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  • John D.
    Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
    5y

    La Quinta has a moratorium on new vacation rental licenses, unclear as to the future there, most investors are focused on other desert cities.

    1Reply
  • Jennifer Sireika
    Property Manager · National · Member since 2020 · 27 posts · 8 votes
    5y

    Lots of great insight here from everyone! I manage VR in Big Bear and finally getting in the STR game with my own money. I've only had LTR so this is very exciting. Yes, it's high right now but so is the incoming revenue! I have a colleague who specializes in Palm Springs if anyone needs help there. She's not on this forum so message me and I'll make an introduction.

    Good luck to y'all!

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  • Neeraj Agrawal
    New to Real Estate · Irvine, CA · Member since 2021 · 8 posts · 6 votes
    5y
    Originally posted by @Jennifer Sireika:

    I am a specialist in Big Bear and Lake Arrowhead. Yes, the competition is stiff. Yes, we require in person face-to-face check ins. Yes, you need someone local to help you manage (PM or an individual). But at the end of the day, demand is at an all time high. Our commission is less than 20% for full service and we have connections (housekeepers, handyman, vendors, contractors, etc) that is worth gold! My advice is to buy in the mountains if you love snow and four seasons, this is not a place to invest and expect high ROI. Those days are gone. But you will make some money, cover your expenses, and own a great vacation rental! The permits are not as scary as people think as long as you do your research first. Good luck!!

    Hi Jennifer, I am looking at Big Bear Lake STR. I live in Orange County and wondering about the property management fees to manage STR. Are there hybrid options available that lowers my property management cost. You and few other folks also mentioned the permits, are those only for cases where you are trying to build new cabins or are those also required for existing cabins/homes that are for resale?

    Also do you have any advice on finding the cash flow value of a potential property that I am considering?


    Thanks
    Neeraj

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  • Jennifer Sireika
    Property Manager · National · Member since 2020 · 27 posts · 8 votes
    5y

    @Neeraj Agrawal STR (short term rental) permits are required in Big Bear and you would need one from either the city or the county, depending on where your home is located. My company charges 23% commission and based on my experience, most companies in BB are between 25%-30% for full service. We do not offer a hybrid or partial service. In regards to cash flow, you can start at AirDNA. Just know that there are a lot of criteria involved that affects your revenue (ie: location, how often you use it, amenities, pricing, etc.). Good luck!

    2Reply
  • Dave ZarconePro Member
    Rental Property Investor · Upland, CA · Member since 2017 · 17 posts · 9 votes
    5y

    Hi all, thought I'd chime in since I love this thread. I sat on the sidelines for years analyzing properties all over while never finding the "right" deal. Looking back, many of those properties would have been great investments in one way or another and I'd be much further along in my RE portfolio if I just took action. But last year I finally pulled the trigger on a house in PS to rent as a STR.

    A few others mentioned, but with STR properties I could easily have paid well over asking and this property would still cash flow. Obviously, each market is different, but the desert is a huge tourist destination.

    Now I'm looking for a second. Either another in the desert or up in Big Bear. Do any of you experts in these locations have recommendations for a good desert city other than PS, or neighborhoods in Big Bear that are highly sought after on AirBnb/Vrbo/etc. and aren't already dense with STR competition?

    Desert cities have lots of restrictions, moratoriums on new permits, or straight out bans in them altogether... 

    And I've toured so many BB/Arrowhead homes, scoured AirBnb properties online to see their calendar's occupancy (and it looks like most primarily rent on weekends, while my PS property rents every day of the week). So I'm not as confident about BB and seeking expert advice from you all!

    Thanks all!

    2Reply
  • Ben Joseph
    Member since 2021 · 12 posts · 2 votes
    5y
    Originally posted by @Dave Zarcone:

    Hi all, thought I'd chime in since I love this thread. I sat on the sidelines for years analyzing properties all over while never finding the "right" deal. Looking back, many of those properties would have been great investments in one way or another and I'd be much further along in my RE portfolio if I just took action. But last year I finally pulled the trigger on a house in PS to rent as a STR.

    A few others mentioned, but with STR properties I could easily have paid well over asking and this property would still cash flow. Obviously, each market is different, but the desert is a huge tourist destination.

    Now I'm looking for a second. Either another in the desert or up in Big Bear. Do any of you experts in these locations have recommendations for a good desert city other than PS, or neighborhoods in Big Bear that are highly sought after on AirBnb/Vrbo/etc. and aren't already dense with STR competition?

    Desert cities have lots of restrictions, moratoriums on new permits, or straight out bans in them altogether... 

    And I've toured so many BB/Arrowhead homes, scoured AirBnb properties online to see their calendar's occupancy (and it looks like most primarily rent on weekends, while my PS property rents every day of the week). So I'm not as confident about BB and seeking expert advice from you all!

    Thanks all!

    I'm in the "sitting-on-the-sidelines" phase right now.

    I did notice that Palm Springs seems to have two important limits on non-owner occupied STRs (if I'm reading the ordinance right):

    - You can't do more than 36 contracts in a year, and you can only have one STR there. Is that right? If you had new guests every 3-4 days you'd run out of contracts in no time..

    I was also looking in Lake Arrowhead and Lake Gregory but the prospect of fires concerns me. Desert might be safer, although I don't know.


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  • Dave ZarconePro Member
    Rental Property Investor · Upland, CA · Member since 2017 · 17 posts · 9 votes
    5y

    @Ben Joseph

    Yes, there are plenty of restrictions in Palm Springs. I often see units on AirBnb with a 2 night minimum and they're almost booked solid... Pretty clear they are operating without a permit... Who knows how long until they get busted.

    I use a combination of 4 night and 5 night minimum depending on how far out the reservation is.

    Yes, you can only benefit from one STR property in PS. Meaning, you can't be on the deed to multiple houses with STR permits. Only one STR per owner. We even thought about buying two homes with one in my name and one in my wife's name but that doesn't work in California. So we're looking elsewhere

    0Reply
  • Ben Joseph
    Member since 2021 · 12 posts · 2 votes
    5y
    Originally posted by @Dave Zarcone:

    @Ben Joseph

    Yes, there are plenty of restrictions in Palm Springs. I often see units on AirBnb with a 2 night minimum and they're almost booked solid... Pretty clear they are operating without a permit... Who knows how long until they get busted.

    I use a combination of 4 night and 5 night minimum depending on how far out the reservation is.

    Yes, you can only benefit from one STR property in PS. Meaning, you can't be on the deed to multiple houses with STR permits. Only one STR per owner. We even thought about buying two homes with one in my name and one in my wife's name but that doesn't work in California. So we're looking elsewhere

     I see so many Airbnbs that are available for short stay in areas where STRs are completely banned. I don't think I could sleep at night if I was running under the radar like that. Prefer to get permitted and follow the rules.

    I'm surprised that a wife/husband team can't own one each in their own names. The one STR per person limit is in some ways a good thing I think - I can see it might help to prevent crazy increases in real estate prices.

    1Reply
  • Catherine Hernandez
    Interior Decorator · San Diego, CA · Member since 2016 · 5 posts · 5 votes
    4y
    Originally posted by @Dave Zarcone:

    @Ben Joseph

    Yes, there are plenty of restrictions in Palm Springs. I often see units on AirBnb with a 2 night minimum and they're almost booked solid... Pretty clear they are operating without a permit... Who knows how long until they get busted.

    I use a combination of 4 night and 5 night minimum depending on how far out the reservation is.

    Yes, you can only benefit from one STR property in PS. Meaning, you can't be on the deed to multiple houses with STR permits. Only one STR per owner. We even thought about buying two homes with one in my name and one in my wife's name but that doesn't work in California. So we're looking elsewhere

    Ben, you completely just burst my bubble! I own one STR in Palm Springs and was ready to purchase another. Had no idea about this STR multiple permit restriction. Guess I'll need to find another market to invest in now! Will probably invest out of state unless I can make something work in Joshua Tree.

    1Reply
  • Catherine Hernandez
    Interior Decorator · San Diego, CA · Member since 2016 · 5 posts · 5 votes
    4y
    Originally posted by @Tom Kastorff:

    @Alex Sabio I am mainly responding to the OP's post, it looks like mid-thread you injected your own topic and questions. Highly recommend you start your own thread, to get specific recommendations but also to respect her post. 

    I just purchased a new primary residence, so my investment prop searches have slowed, and I plan to wait out the rest of the year to see how the pandemic plays into more or less inventory. Most desirable locations are too frothy right now because of low rates and bored and hungry investors trying to land a deal. The 2 or 3 locations I am still following lightly are just overpriced compared to likely returns for an STR. That's what I have seen in big bear, too many biggerpockets type investors trying to buy-in, and I just don't see how most of the current price levels can be profitable rentals unless you purely self manage. I am still following one CA ski town that I already own in, otherwise I am going to concentrate out of state going forward.

    Hey TJ, have you found any markets to STR invest in lately? I'm also an investor from SD and am capped at the one Palm Springs STR permit that I already have outstanding and have to look elsewhere for the next opportunity. Been having no luck as these markets are way overpriced currently and this is almost in to 2022!

    1Reply
  • Tom Kastorff
    Rental Property Investor · Las Vegas, NV · Member since 2014 · 137 posts · 118 votes
    4y
    Originally posted by @Catherine Hernandez:
    Originally posted by @Tom Kastorff:

    @Alex Sabio I am mainly responding to the OP's post, it looks like mid-thread you injected your own topic and questions. Highly recommend you start your own thread, to get specific recommendations but also to respect her post. 

    I just purchased a new primary residence, so my investment prop searches have slowed, and I plan to wait out the rest of the year to see how the pandemic plays into more or less inventory. Most desirable locations are too frothy right now because of low rates and bored and hungry investors trying to land a deal. The 2 or 3 locations I am still following lightly are just overpriced compared to likely returns for an STR. That's what I have seen in big bear, too many biggerpockets type investors trying to buy-in, and I just don't see how most of the current price levels can be profitable rentals unless you purely self manage. I am still following one CA ski town that I already own in, otherwise I am going to concentrate out of state going forward.

    Hey TJ, have you found any markets to STR invest in lately? I'm also an investor from SD and am capped at the one Palm Springs STR permit that I already have outstanding and have to look elsewhere for the next opportunity. Been having no luck as these markets are way overpriced currently and this is almost in to 2022!

    Heyo! I have found plenty of markets to invest in. Just none where I can win an offer that isn't $50-100k over ask :) 

    Gave up on PS after losing a couple props and digging through all the permit concerns. Gave up on BB for similar reasons. Have looked all over, from SD (have lost out on ~5 properties, from $50k over to $225k over ask), to gulf shores (similar insane overpricing), to wine country (a couple I tracked went $100-200k over ask thanks to SF tech money) and beyond. 

    I am still looking but it is pretty difficult to find a deal on the MLS at this point, that a million of us aren't all looking for at the same time. Just too much money floating around out there and still not enough inventory to help soften the blows of 18 offers and $100k over ask. In the meantime I am investing in my 3rd fund to diversify my RE holdings, more passive and more short term upside in returns. Still keeping powder dry in case I find an STR deal, but spending less time looking, aside from the standard daily alerts I have set. Curious what everyone else is doing out there.

    1Reply
  • Catherine Hernandez
    Interior Decorator · San Diego, CA · Member since 2016 · 5 posts · 5 votes
    4y

    Wow! I have been hearing your same story from other investors in the California and Texas markets. Continuing to pay $50k-$100k (or more) over asking price just does not make sense to me and are the numbers even working paying that much over? I was fortunate to purchase an STR in PS in early 2020 and am in the process of switching property management companies, so my capital is tied up in that home for now. I am going to start researching the Nashville market and monitor how buying trends are going across the country in 2022. Hoping if rates increase, this will slow some offers down. Good luck with your search TJ!

    2Reply
  • Laura Kastner
    Hermosa Beach · Member since 2021 · 40 posts · 9 votes
    4y

    I’ve lost out to about 10 offers or more? In some I was the highest offer (37K over asking!!!!) conventional loan and lost to an all cash. It’s wild. My agent showed me a place that i passed on. It went for 125K over asking. (asking was 400k). 

    The numbers do NOT work at this time and inventory is getting more and more undesirable with inflated prices. 

    (I’m talking about southern california from the mountains to the deserts to the coasts and surrounding areas).

    We shall see how the rate increases affects the market.

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  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    4y

    @Laura Kastner yes, this is normal and has been pretty normal through the course of the last 2 years excluding March and April of 2020. The challenge you hit the nail on the head is the low inventory and the money that is flowing through the economy along with people not knowing where to put the money then realizing real estate is a good option has a huge impact. The biggest challenge I would say this year is the rate increases; however, as long as they do not shoot up to 5.5%, 6% and higher there will still be high demand.

    Even in the long term rental space there have been a lot of studies that have come out (one from USC) showing the next two years rents in LA/OC long term rentals will increase by $300-$400 and Inland Empire $100-$200. It's the headwind of inflation that has the upside of real estate.  

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  • Catherine Hernandez
    Interior Decorator · San Diego, CA · Member since 2016 · 5 posts · 5 votes
    4y

    @Laura Kastner that is unreal! There’s no way these properties are worth overbidding by that much. I have a feeling people paying $125k over asking are not cashflowing too much.  I am also hoping the increasing rates will slow some demand. It sure is tough for us investors that have a conventional loan these days! 

    1Reply
  • JJ P.
    Real Estate Agent · San DIego · Member since 2019 · 177 posts · 185 votes
    4y

    Not to burst anyone's bubble, but saying "there's no way that these properties are worth this much" is ignoring the obvious.  Multiple people tried to pay that much or nearly so, as evidenced by the bid up and the sales price.   The comps will follow the sales price.   

    I once had a homebuying client who spent the first few months of his home shopping making offers that were somewhat tied to the purchase price of the property.  He'd make comments like "They should be happy making XXX over what they paid for the place."   He didn't get an accepted offer until he moved on from that point of view.   That is simply not a viable or rational strategy.   Apple or Amazon won't sell me a couple of shares based on what they were worth in the past-- choose any moment on the timeline-- last week, last year, 20 years ago--- it simply doesn't matter.  

    Up thread I mentioned my grandma's beach house... the one she didn't want to buy because it was so expensive at $16,000.   The market moved the value of the house.   The market will move the value of today's houses and stocks.   The prices will rise and fall based on forces bigger than we are.   So, make a purchase that works for you based on a thoughtful investigation of the data that you have available to you.  If that means changing markets, buying a fixer, buying a condo-- something should make sense and that's the one you should buy.  

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  • Jeremy Hansen
    Member since 2022 · 1 post · 1 vote
    4y

    Prices in BB have gone exponential over the past 3-6 months, it's out of control. LA Times wrote an article that area businesses can't find enough workers because so much housing has converted to STRs that there aren't enough residents to fill employment needs. Grocery store owner stated in the article he was short 30 people. Realtor who lives there says town council may be bringing stiffer rules on STR such as capping the number (well below current) and not allowing permit transfers upon property sales.

    I've read this same story about several western ski areas, many ski resorts are struggling with understaffing as a result, and angry customers, and many ski towns are taking measures to limit STRs. We've visited BB two weekends in a row and what we see is a LOT of EMPTY STRs, both based on looking at rental websites and just by driving/biking around neighborhoods. Perhaps a lot of the STR owners have cheap or no mortgages from long ago or even just 2 years ago, so it's no problem for them. I don't see how anyone could get into the market there right now, even with historically low interest rates, and expect to be profitable anytime soon under these conditions. Despite this, properties are still getting bought in days for well over asking. I have to think a lot of novice investors who think the money is easy, and that housing only goes up so buy no matter the price (think younger buyers who were <21 during the last bubble pop so have no memory of real estate going in any other direction) are going to be disappointed.

    1Reply
  • Laura Kastner
    Hermosa Beach · Member since 2021 · 40 posts · 9 votes
    4y

    BB and west across the mountain cities have gone up so much (anywhere from 50k-200k) in the very short time I have been looking. I also have a great realtor in the desert areas that @John D. (thanks John!) hooked me up with that has been very savvy about trying to put together deals. 

    These are the problems as I see it currently (for strs):

    Mountains: low inventory & in BB almost everything is an str or a former str. I also hear from str owners that support staff to run the strs there is on short supply :(

    Desert: Bans & moratoriums & strict rules. Which is then causing the nearby areas that are friendlier to strs to have not much inventory as well. Appraisals are very tough in the desert as they are comping with gated communities that are lower priced…soooo, put aside some money for that. :)

    I personally love the desert heat and usually hang out there in the summer. I’m looking at getting a pad with a pool in maybe Desert Hot Springs. Anyone Str’ing there or thoughts on that area? TIA!

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