Three of the four houses we purchased were abandoned or distressed in one form or another. Vacant houses are subject to getting the Air Conditioner Condenser ripped off. Once we fixed up the houses and put in new AC units, we did not have any problems. If the house is already vacant and appears trashed then it draws in the copper thieves. Once it's fixed up and looks nice then people leave it alone.
We have not had any crime problems at any of our houses once we fixed them up and got a tenant in place. Our Realtor knows the areas to stay away from. Ironically, the area just around the downtown is not a good area. North of Mission Lakes is very desirable. There are even houses that cost more $500,000 and even $800,000 in the area.
We recently found a great neighborhood called Del Oro. Near Mission Lakes and West street. It is definitely the nicest neighborhood in DHS other than the Country Club. We looked at houses in the Country Club but the HOA fees are very high. We would have to get a fantastic deal to justify a Rental.
The crime seems to concentrate in the apartments around and just south of the downtown. More businesses are moving in and the area is getting better all the time. Also, ironic is the fact that land and housing prices are shooting up because of the Marijuana farming that has been approved for DHS and Coachella Valley. Look it up on the news sites. Land has quadrupled in the last few months. We think it's going to be next Palm Desert or maybe even Palm Springs.
We have 4 rental houses in Desert Hot Springs and have flipped 1 house there also. Are you looking to buy and flip on your own house or are you looking to work with an investor like me?
Investor · Orange County, CA · Member since 2014 · 137 posts · 96 votes
10y
@Chris Latham How have your rental houses in DHS been doing? I own some MFH in 29 Palms and have looked at DHS in the past, but the reputation for crime has turned me off. Is that reputation deserved or have things been cleaned up a bit over the past 10 years? It's hard to get good information online. Thanks.
Three of the four houses we purchased were abandoned or distressed in one form or another. Vacant houses are subject to getting the Air Conditioner Condenser ripped off. Once we fixed up the houses and put in new AC units, we did not have any problems. If the house is already vacant and appears trashed then it draws in the copper thieves. Once it's fixed up and looks nice then people leave it alone.
We have not had any crime problems at any of our houses once we fixed them up and got a tenant in place. Our Realtor knows the areas to stay away from. Ironically, the area just around the downtown is not a good area. North of Mission Lakes is very desirable. There are even houses that cost more $500,000 and even $800,000 in the area.
We recently found a great neighborhood called Del Oro. Near Mission Lakes and West street. It is definitely the nicest neighborhood in DHS other than the Country Club. We looked at houses in the Country Club but the HOA fees are very high. We would have to get a fantastic deal to justify a Rental.
The crime seems to concentrate in the apartments around and just south of the downtown. More businesses are moving in and the area is getting better all the time. Also, ironic is the fact that land and housing prices are shooting up because of the Marijuana farming that has been approved for DHS and Coachella Valley. Look it up on the news sites. Land has quadrupled in the last few months. We think it's going to be next Palm Desert or maybe even Palm Springs.
Palm Desert, CA · Member since 2015 · 1 post · 1 vote
10y
Hi Fellas. Just want to introduce myself. I"m Leila McCauley. I've been flipping in the Coachella Valley for past four years. Currently, I'm wholesaling (needed a break from the flipping job :) and picking up rentals. Just buying a duplex or two in DHS right now. I know what I am getting into. Did a flip there in 2013 and the neighbor swam in the pool, had a party and used the bbq. When I asked him about it, he acted like it was no big deal. Even when I looked at the hose going from our house to his. I just had to laugh. We put up a sign saying the pool had been treated with extreme amounts of HCL and if any 'workers' skin gets exposed to the water to seek immediate attention. The neighbor's swimming and parties soon ended.
Rental Property Investor · Los Angeles, CA · Member since 2016 · 30 posts · 15 votes
9y
@Sean Durham and @Martin Spielvogel I'm about to close on a 1br in 29 Palms. From what I understand, there is a need for month to month rental housing for marines, as the the Marine Corps base usually has full occupancy. It's even more desirable if it's furnished. I'm inheriting tenants, so I'll keep you up to date with how it goes.
If you don't mind me asking, what initially interested you in 29?
Investor · Escondido, CA · Member since 2017 · 55 posts · 15 votes
9y
@Samuel Gostnell what you just talked about. Property is relatively cheap the base is close by and you don't have to worry about them not paying. My friend used to live there he is now retired marine. He has two SFR in 29 palms and they rent okay.
Pasadena, CA · Member since 2016 · 41 posts · 20 votes
9y
We have a 4-plex under contract in 29 Palms right now. Getting to know the area a bit - seems as though there's no real shortage of rental applicants, as long as you're comfortable with month-to-month leases.
We aren't buying on appreciation speculation, but I do think the area has a ton of runway. Restaurants coming in, art/culture/events etc. I see 29 palms eventually having a really strong STR opportunity.
@Samuel Gostnell We're from LA, so the area allows us to invest in-state at out of state prices. Seems like the area is well poised.
Investor · Eastvale, CA · Member since 2015 · 38 posts · 17 votes
9y
Hi, yes, we are very happy with Richard Furstenberg. Cell: xxx-xxx-xxxx (BP won't let me post, so contact me or look up Richard Wolf Furstenberg via Google)
Last time I asked, he had helped people purchase more than 60 houses in DHS. We purchased 5 SFR's thru him in DHS and sold 1 with him. He is an expert in the area and he offers a substantial discount on his Realtor Fees. He is also the Broker. He knows the area so well and he is out there so often that he offers his buyers a discount on Property Management. We are deliriously happy with Richard. I told him that I am active on Bigger Pockets. Please tell him that I told you about him via Bigger Pockets. I've been trying to talk him into joining.
Surveyor · Hemet, CA · Member since 2015 · 797 posts · 112 votes
9y
@Chris Latham hey what's up another Southern California member here! Going to my first real estate meeting on the 28th at the mission inn hotel in riverside. I am also looking to become a first time land lord. What did you get your investment properties for if you don't mind me asking. I am finding houses about 100k in hemet.
Investor · Riverside, CA · Member since 2016 · 129 posts · 67 votes
9y
Chris Latham I'm looking at a house over near West and 6th, north of Pierson. Just north of the elementary school and close to the high school. How do you feel about that area of DHS? Looks decent but hoping I can get some advice from someone already in the area. Do you self manage or use a PM? Thank you
Pasadena, CA · Member since 2016 · 41 posts · 20 votes
9y
Officially closed on our 4-plex in 29 Palms. Just squaring away the property management details now. Seeing where we can strategically invest in the property to improve tenant quality of life and prop up rent value in the near future. I like the opportunity of this area as well as DHS and Yucca.
Brent Seehusen I know it's been a while since you posted here but I was wondering how is the rental market in 29 palms? Thank you.
Hi Martin,
Sorry I'm late in answering this question. My first year in 2015 had high turnover due to inherited tenants and some long gaps in between occupants. I think my vacancy rate for that year was around 25% which was painful. Since then, in 2016 and 2017 the vacancy has been much lower (under 10%) so that makes things much better.
Still, there can be management difficulties in the high desert. I've had several tenants break their leases early. A lot of young Marines move to 29 from out of state and they can be kind of fickle since they don't know the area. Once they get here, they might want to move to a different part of town or back on base. I've had issues with tenants getting dogs in violation of their leases. I've had one roommate get a restraining order against the other, and then they both move out. Luckily, my property manager handles these issues.
The best tenants are actually not Marines in my experience, but the people that live in town and work off base. My two longest running tenants fit this profile, one is a pharmacist and the other is a caregiver. These types tend to be long term renters that have chosen to live in 29 Palms for one reason or another, and aren't likely to move away any time soon.
I've also been getting some applications lately from people moving to 29 that are seeking cheaper cost of living, but their incomes or credit scores are just too low to qualify for $550 per month rent. I've turned down 3-4 applicants recently because they simply don't meet the requirements. I've never had to turn people away like that before now. It could be that the extremely high housing costs in LA/OC/IE are pushing people out and forcing them to look in the cheapest locations possible. It's something worth watching to see if it's part of a larger trend.
I think you can still cashflow in this market, but it's not as good as when I was first buying. The two duplexes I own were purchased for $64k and $69k respectively. Now I see duplexes going for $90k-$120k or more. Meanwhile, rents have not gone up, but actually decreased slightly since my first purchase. That makes it more risky to buy right now. Even when I had 25% vacancy, I was able to cashflow but at today's prices that would be impossible. Also, I can afford to wait for the right tenants like I've been doing. Somebody with slimmer margins might have a harder time with that.
Lastly, I will say I think 29 Palms will continue to increase in value as long as the larger California market is increasing in value. Eventually, I believe that it will stop and reverse. California has a history of housing downturns and anytime somebody says "this time is different" you know the crowd is buying into hype. During a downturn, working class areas always get hit the hardest. People don't have the savings to weather a downturn like those living in higher cost areas. So while I agree that 29 has some resemblance to Midwest cashflow markets, it's also prone to downturns as it still sits in California. 29 Palms got hammered hard in the 90's downturn and the mid-00's downturn. So be mindful of that and watch your risk.
General Contractor · Palm Desert, CA · Member since 2016 · 193 posts · 79 votes
7y
I'm putting a SFR in Indian Wells under contract early next week. I think the ARV is around $900k. I would like to do the rebab but if anyone is interested in buying as I can asign it for $725k.