Any one got any experience with Indio, Riverside, California

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Any one got any experience with Indio, Riverside, California

Catherine Underwood
Member since 2018 · 24 posts · 2 votes

It seems like a popular place as it's near the festivals (especially if you rent it out as a short stay vacation rental).

However, at the same time, I notice that property there takes a long time to sell.

Any one got any experience that they would like to share?

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Mark Futalan
Rental Property Investor · La Quinta, CA · Member since 2018 · 263 posts · 95 votes
6y

@Andrew R.

Ok that's what I figured. A couple other things. Your nightly rate is a little low for a 4 bedroom house. Does it have a pool? I assume you could easily get $200-$300/night for a house that size and more if you have a well themed and tons of amenities. Also what occupancy rate are you using? STR's are a little different in that most cases, your not booked 100% of the time. I strive for 50-80% on most months with premium rates. Also there is a seasonality involved with March and April typically being our highest performers due to the events happening during that time. If you do decide to go property mgmt, make sure you go with one with a good reputation because reviews are everything with STR's. If you do ever decide to self manage, reach out. I have 2 that I manage with a full time job and family. It's not as challenging as it seems especially with automation. Best of luck.

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  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    7y

    Indio is fine in the winter things do take a long time to sell and some of the desert cities have regulations regarding short term rentals

    1Reply
  • Noi K.
    Rental Property Investor · Los Angeles, CA · Member since 2019 · 30 posts · 7 votes
    7y

    @Catherine Underwood

    I am selling my SFH in Indio that I kept as a rental for too long. I suppose for short term rentals it maybe ok... but it was hard to get a decent rent and tenants (at least for me).

    0Reply
  • Rob Moran
    Investor · Riverside, CA · Member since 2016 · 129 posts · 67 votes
    7y

    @Catherine Underwood Indio has all types of real estate opportunities. It is one of the cities in the Coachella Valley that is predominantly full-time residents who live and work in the Valley. There are also retirement communities for the seasonal folks. Some parts of Indio make more sense for short-term rentals than others. There are neighborhoods very close to the Polo Grounds where the festivals are held that are newer and are attractive to investors for short-term. Other areas are farther away and more working class and are not well-suited for short-term, in my opinion and I'm not a short-term expert. Along those same lines, some are very nice neighborhoods and others not so much. 

    1Reply
  • Noi K.
    Rental Property Investor · Los Angeles, CA · Member since 2019 · 30 posts · 7 votes
    7y

    @Rob Moran It's not on the MLS yet, but I am talking with a potential buyer. Do you rehab and rent?

    1Reply
  • John D.
    Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
    7y

         The city of Indio runs the gamut, from low income housing, to high end homes well into the millions, to agriculture properties at what are very reasonable prices compared to much of california's ag.  For the purposes of discussion, it's hard to talk about all of Indio as a whole in thread.  If you have questions specific to vacation rentals or related, I would be happy to try to answer them.

    1Reply
  • Po Chan
    Member since 2019 · 26 posts · 3 votes
    7y

    I am new to the valley and I have also been looking for buy and hold properties that generate cash flow from long term rentals in and around Indio.  Maybe i am looking at the wrong place, but they seems to have all but disappeared in today's market.  Does anyone have suggestions on where or how to find long term rental properties that that makes cash flow works?

    0Reply
  • Catherine Underwood
    OP
    Member since 2018 · 24 posts · 2 votes
    7y

    @Rob Moran @John D. Hi Do you have any knowledge or insights about Bermuda Dunes? Thanks!

    0Reply
  • John D.
    Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
    7y

    Have any specific questions?

    0Reply
  • Catherine Underwood
    OP
    Member since 2018 · 24 posts · 2 votes
    7y

    @Rob Moran @John D. Hi Sorry I meant Ranco Mirage and Montage Santa Rosa. Do these areas have any pitfalls or problems?

    0Reply
  • John D.
    Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
    7y

    Happy to answer any specific questions.  The Montage is in Indio, and governed by the Indio Ordinance.

    0Reply
  • Andrew R.
    Rental Property Investor · Santa Barbara, CA · Member since 2016 · 75 posts · 40 votes
    6y

    Hello, adding to this discussion, I worked up a ProForma for the Indio area and can't get it to Cash Flow. Would any local experts be willing to look at the attached and see if my numbers are accurate or way off? Thanks!

    0Reply
  • Mark Futalan
    Rental Property Investor · La Quinta, CA · Member since 2018 · 263 posts · 95 votes
    6y

    @Andrew R.

    Hi is this an STR or LTR? If you self manage, which a lot of people do, you can put they property mgmt fee in your pocket. I self manage 2 STR's in the area. Also, noticed a cost on HOA. If you STR the property, is it allowable in that HOA community? Cleaning expenses are also typically higher on an STR but again that cost is typically past on to the guest.

    1Reply
  • Andrew R.
    Rental Property Investor · Santa Barbara, CA · Member since 2016 · 75 posts · 40 votes
    6y

    Thanks @mark futalan, I'm trying to project for a STR (yes I'm only looking at properties where the hoa would allow STRs). Good point about the cleaning fees. I have a full time day job so planning to use property mgmt at this point, how do the rest of my numbers look compared to your STRs? Thanks!!

    0Reply
  • Mark Futalan
    Rental Property Investor · La Quinta, CA · Member since 2018 · 263 posts · 95 votes
    6y

    @Andrew R.

    Ok that's what I figured. A couple other things. Your nightly rate is a little low for a 4 bedroom house. Does it have a pool? I assume you could easily get $200-$300/night for a house that size and more if you have a well themed and tons of amenities. Also what occupancy rate are you using? STR's are a little different in that most cases, your not booked 100% of the time. I strive for 50-80% on most months with premium rates. Also there is a seasonality involved with March and April typically being our highest performers due to the events happening during that time. If you do decide to go property mgmt, make sure you go with one with a good reputation because reviews are everything with STR's. If you do ever decide to self manage, reach out. I have 2 that I manage with a full time job and family. It's not as challenging as it seems especially with automation. Best of luck.

    3Reply
  • Tara Faulks
    Rental Property Investor · Santa Monica, CA · Member since 2020 · 15 posts · 12 votes
    5y

    I am currently looking for a STR in Palm Springs and really trying to nail down expenses. I use Mashvisor and have spoken to some local property managers to understand income. The income is solid despite restrictions but the expenses are high and varied so i am struggling to understand a true cash flow and ROI. From what i have learned, gas (pool heating) and electric (summer air at full blast) will probably be more. Summer months tend to be close to $700/day from what i hear and heating the pool in the winter months is $75-$150/day. Many of these costs are often offset and paid as part of the rental fees. Interested to see others experience in these areas.

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

    @Tara Faulks post your data happy to help validate it.

    1Reply
  • Tara Faulks
    Rental Property Investor · Santa Monica, CA · Member since 2020 · 15 posts · 12 votes
    5y

    Here it is.  This doesn’t include the PM fee of 27%, mortgage, insurance, etc...  my realtor said my gas seemed high.  This was derived from talking to local PM company’s, my realtor, talking to sellers and an online expense sheet for a mutual family.  I put a range in because it depends on location, size of property, age of property, etc...

    1Reply
  • Mark Futalan
    Rental Property Investor · La Quinta, CA · Member since 2018 · 263 posts · 95 votes
    5y

    @Tara Faulks

    I agree that gas expense is typically higher especially if you have a heated pool but that cost is typically past on to guests. I usually see around $50-75/day charged to heat pool. Not needed during summers but definitely during the winter and early parts of the year. Electric bill usually highest in the summer with AC running 24/7 with highest bills typically July-August/September.

    0Reply
  • John D.
    Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
    5y

    Whats the address of the property?  Awful hard to estimate an electric or other bill not knowing what property it's for ;0

    0Reply
  • Andrew R.
    Rental Property Investor · Santa Barbara, CA · Member since 2016 · 75 posts · 40 votes
    5y

    Thanks all, some of the posts above say 50 to 700 per DAY for some of these utilities-- I assume that's supposed to be per MONTH, right? Or really up to 700 a day for utilities

    0Reply
  • Tara Faulks
    Rental Property Investor · Santa Monica, CA · Member since 2020 · 15 posts · 12 votes
    5y

    I looked at many properties with various sq footage, age of house and landscaping needs.  That’s why I put high low to get a range.  If I am going to make an offer I hopefully can narrow it down further and not have such a big range.   That’s the hard part though that I have struggled with.  Some properties are profitable at $13k a year but not $20k so knowing this information is important.  Still trying to learn 

    0Reply
  • Katy Reid
    Investor · Los Angeles, CA · Member since 2019 · 30 posts · 12 votes
    5y

    @Tara Faulks I see you also have a line item for $79 monthly fee for permits - was this provided by the PMs you spoke with? I've been Indio.org and all I'm finding is an up front cost for permits (not including TOT). 

    0Reply
  • Tara Faulks
    Rental Property Investor · Santa Monica, CA · Member since 2020 · 15 posts · 12 votes
    5y

    @Katy Reid I just took the upfront cost (On City of PS website) and divided by 12 but it actually would have been paid in full not monthly.  Sorry for the confusion.  

    0Reply
  • Katy Reid
    Investor · Los Angeles, CA · Member since 2019 · 30 posts · 12 votes
    5y

    Thank you! 

    0Reply
  • Kelly Wali
    Los Angeles, CA · Member since 2015 · 18 posts · 1 vote
    2mo

    Yes I have experience and let me know what you wanna know. The only problem I had with Indio is the homeless people just kept squatting to the point that I had to put the top of the line security alarm along with cameras on every corner of the house and still they would go in there just long enough to get out before the police came lots of vandalising how to remodel the house three times if you’re in the area and you can visit the property at least once or twice a day you will be fine, but the moment that they know that there’s no one there to keep an eye on the property you’re done 

    0Reply
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