Looking for some feedback from current owners of multi-tenant properties in the Palm Springs / Palm Desert area.
I know I am being brief here, but just looking for a general idea. Does anyone have any problems with vacancies with their properties in this area?
I lived in Palm Desert for one year and reviewed several real estate investment opportunities but never pulled the plug.
A couple of things to realize.
(1) It is a highly seasonal market. High Season is Oct - March. Yes, there are full-time residents, but this is a very important impact on the economy.
(2) The cities are heavily tourism dominated. That has its own implications. A lot of tourism related jobs are not the highest paying. However, there are a lot of retirees, and if you can attract them, you can do well.
(3) Both Palm Springs & Palm Desert are both highly heterogeneous cities. In either city, you can buy a $300k duplex and/or a $3 million luxury SFR.
(4) Amenities and facilities are very important in the area. Many apartments have swimming pools, tennis courts, putting greens and fitness centers. As an MFR owner, you will be competing with those large complexes, and you may be surprised to know how affordable some of them are.
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