Hello to all my BP peeps,
Thinking about investing in Palm Springs/Desert Hot Springs, CA? Wondering if anyone in the community if familiar with this market? Looking to purchase a multi family unit? What areas are good or bad?
Thanks in advance!
I have an excellent referral for you for that market. Feel free to pm me.
This is an area that i have been interested in and have knowledge of the area. My girlfriend grew up in DHS and both her parents still live in DHS. She does not like the city at all due to poverty and gang issues. If you are looking in DHS specifically i would keep an eye out on the crime rate in the neighborhood.
On a more positive note, Desert Hot Springs (DHS) is an up and coming city that will be big in the marijuana industry. They have already started converting lots to turn into commercial grow sites. This could be huge in terms of turning the city around and bringing revenue to the city.
I was just in Palm Springs for New Years and noticed lots of construction going on. They are renovating a lot of the casinos in the area as well. I see this as positive for the future as well.
Just a little insight on some of the stuff thats going on in the area.
Edi: also, might wanna look into short term rentals like Air bnb because DHS is the last city before the drive into Joshua Tree. Joshue tree gets filled up quick and could be pretty pricey so DHs would be the next best bet
@Jo-Ann Lapin can you PM me the referral pls? I can’t PM you on my phone for some reason .
Hey @Richard Naimy , I've been looking into the Greater Palm Springs area also. Thinking about a Multi family unit. I’ve started researching the area and it look like a Duplex maybe the way to go for me. Let me know what you find out with your research.
Hello, just had an offer accepted after much research for an investment property in Palm Springs,CA. From what I have found online short term rentals are heavily regulated by city, so I was considering just renting out the condo month month. Any thoughts on this? TIA!
Hi @Amy Habashy ,
Congrats on your accepted offer! What type of investment property did you find in Palm Springs?
I think going month to month is a good idea. I'm sure the short term rentals will only get more difficult in the future with regulation.
Any other info would be greatly appreciated.
It’s a one bedroom condo right by the tram, we paid cash for it to avoid any interest and additional monthly fees. The thought was to post it inn airbnb but the regulations are crazy! We have several rentals in LA and have never seen so many rules like Palm Springs! I think we will try to post it month to month ...and I noticed the market had a few seasonal rentals as well. Good Luck!
Palm Springs is very much look before you leap. With that said, lots of opportunity in the Coachella Valley area. Give a shout if you are considering in an east or north valley city!
Hey @Richard Naimy I just wanted to follow up with you and your search in the Palm Springs/Desert Hot Springs area. And new developments?
@John D. and others, im in the area sunday and monday in palm springs to look for potential investment properties, more condo around 150-250k range, w potentially a $500/m net monthly cashflow. happy to see any good properties someone can show me
@Drew Slew Best of luck! That sounds like an incredibly challenging hurdle in PS.
Any updates on how DHS is developing? It looks like crime has gone down over the last two years on paper.
Also, any good threads on long term rental vs vacation for the area anyone can point me to? Was planning to go the long term rental route to increase stability (but it does raise the risk of more tenant issues).
@David Lutz Many people are going the STR route, but one must be VERY careful with that strategy, especially in the city limits of Palm Springs. They have cracked down hard on them over the past years, and you MUST know what you are doing. I am only in the process of learning it myself.
I've always been a fan of the LTR strategy. I like knowing that each month I will have X amount of dollars coming from a particular property, without the seasonality of the amount changing. When you purchase a property and before you first rent it out, make sure everything is in perfect working order, the place is sparkling clean, and your rent is in line if not slightly below market rent for the area and you'll always have tenants. Make sure you do your background screening and you should be fine.
LTRs in the valley can be a challenge to find, properties that make sense don't come on the market every day, but they do come on the market. Occasionally a fixer comes on the market that can be purchased using hard money at 70% of ARV so some if not all your repairs can be financed into the deal, then get a tenant into the property and refi....and enjoy the cash flow! These are more rare here in the valley, but again they do come along.
Hey everyone! I’m interested to get into investment property. However I’m only a college student so my budget is limited. I looked into some condos, 1 to 2 bedrooms and 1 bathroom, near Mission Lakes country club in Desert Hot Springs, CA. The condos are selling between 40k-70k which is around my budget. I was wondering if this is a good investment property for my first property.
@Pei Lin Check the HOA dues. I think this may be the complex that has high HOA fees.
Hey @Jennifer Perich thanks for the quick reply. The condo I found near Misson Lakes Country Club has HOA of 350 a month.
@Pei Lin I was looking in that same area last year and if I'm not mistaking, the HOA is about $288 and then there's a separate monthly fee for access to the golf course which is about $350 per month. You can confirm with the listing agent. I haven't looked in that area for several months. I would review the CC&R's to see if they mention restrictions on renting out the unit if that's your long term plan and look at what % they are funded. That will give you an idea of whether or not a special assessment or a dues increase is likely in the future.
Hi, is there much demand in DHS for long term rentals, such as a nice 3 bed/2 bath, furnished, with a pool? Thanks
Good question on rentals though.
I do know that when I recently checked Zillow DHS was a "HOT" area - no pun intended. (seller's market)
But I also know that people in the desert areas universally look down on DHS as a bad are with lots of problems. Since I was looking to wholesale I moved away from it figuring fix and flip investors wouldn't be very interested.