All Forum Posts by: Eric Kramer

Hi Jesse, 

I currently live in Cathedral City and am in search of a SFR that I can house hack. I am a realtor and work part time at a brewery tap room in downtown Palm Springs. I have come across multiple "deals" via the MLS (targeting the Palm Desert and La Quinta cove areas). That said, I have determined that the best route of action would be to target distressed homes that are not listed for sale. Being an agent, I have access to a few different tools provided by my guy at Chicago Title. My plan is to start calling/mailing/door knocking these properties to see if I can come across the right home that fits what I am looking for.

All said, I am not married, make around $20k per year and have access to some capital for a down payment via family. I highly recommend interviewing local banks and lenders to evaluate loan options. If you are able to HELOC your current home or are willing to move, that may open up opportunities when it comes to down payment options as well as different loan programs. Aside from that, @John D. hit the nail on the head. Stuff as much cash as possible under the mattress every month (figuratively; I am currently in that process too). 

While I have been focusing my search in the Valley, speaking with lenders, asking for referrals when it comes to title reps, and seeing what tools some of these folks have to available can be a great way to pinpoint the properties that fit what you are looking for. 

Best of luck!

Eric Kramer

CA BRE #01988890

I am also very interested in the property type and specific location! Price point certainly sounds like a condo, but I am curious how the STR strategy will work in an HOA. What were the specific terms of the deal? Did it come furnished?

I look forward to meeting you @Travis Moe! I was bummed when I wasn't able to make the last meetup to get to know the group.

@Jeremy Grubaugh I am a realtor in Palm Springs and have been looking for a 2-4 unit since moving back here a couple of years ago. The market has been full of investors since before the '08 crash and has gotten pretty expensive for flippers since then.

As far as buy and hold goes, short term has become a hot topic in the desert. Each city has it's own requirements and restrictions. Palm Springs allows STR's with proper permitting and owners are limited to 36 STR transactions per year, short term being less than 30 days. There are certainly deals to be had, but rental rates vary from week to week with different events and holidays.

Something I took note of is that in the price range that you are looking for, Palm Springs proper would primarily put you in the condo market, and HOAs will come with their own rules on renting units.

Some other cities are a bit more flexible when it comes to STR's and are sub $20 Uber rides and within 15 minutes or so of downtown Palm Springs. I am happy to help with any questions you have on the area!

I am really bummed that I was unable to make the last meetup as I got pretty backed up with work, but I look forward catching up with everyone on the 26th!

@Todd Tyler I am an agent that works out of Palm Desert and have been searching for a duplex myself over the past few months. I am familiar with the area (grew up in the area and went to Palm Springs High School), if there is anything that I can help you with feel free to message me.

Hi Dutch, 

It was great to meet you, Chris, Lisa and Kathy last week at the first meetup! I look forward to the next one in a couple of weeks.

See you all there!

Eric

Hello Bigger Pockets! My name is Eric Kramer and I am a licensed Realtor in the Palm Springs area. I decided to get my real estate license about 3 years ago after having read Rich Dad Poor Dad (like many, I suppose) and wanted to get into the REI world. Not having any clue as to how buying a house worked to begin with, I figured getting my license would help me to better navigate the waters while providing some decent commissions checks. After spending the first year to year and a half trying to play the "part time agent" game in the San Diego area, I made the choice to move back to Palm Springs to play in a more familiar sandbox. My business has been starting to pick up in the last 6 months or so and I am finally starting to see things coming together to purchase my first property within the next year or so with house hacking in mind. I am finally starting to frequent the forums more regularly after having listened to the Bigger Pockets Podcast for the better part of the last year or so and I am excited to be an active member of the community!

I live in Cathedral City and work as a realtor who's brokerage also has a vacation rental business. @Charles Chamorro hit the nail on the head with the upcoming vote for vacation rentals in Palm Springs in the upcoming month, but every city in the Coachella Valley has its own regulations when it comes to rentals, almost all requiring a permit to be rent-able. 

Palm Springs current rule is that a SFR is only allowed (I believe) 31 short term rentals per year. This will change in June depending on how the vote works out.

Palm Desert has seen some of the heaviest push back from full time residents, but the primarily just requires the short term rental permit. Unfortunately for many, short term rental permits are now prohibited for homes in R-1 and R-2 zones. To my understanding, the only way that a property can get a STR permit is in the event that the owner remains on-site for the duration of the rental. Here is the link for the ordinance in Palm Desert: http://www.cityofpalmdesert.org/home/showdocument?...

Cathedral City, Rancho Mirage, La Quinta, and Indio more or less just require a permit for SFR's to be rented out on a short term basis (less than 27 days is the least amount of time to be considered "short term", but please double check the city you are considering).

Something important to keep in mind for EVERY city in the Coachella Valley with regards to short term rentals is the Transient Occupancy Tax (TOT tax). Every city has the TOT tax included in their ordinances for STR properties, and as long as you stick to the code, things should be fine.

@Eric Dowling is also on the mark in that the greater Palm Springs area is also a fantastic year round destination. We just wrapped up a big rental income month after the two weekends of Coachella Fest followed by Stagecoach, but with the desert heat there are plenty of pool parties to go around. Even later in the year when things cool off, my broker's vacation rental company has gotten fairly regular rentals from properties across the valley. 

I hope this helps, if you have any questions or suggestions feel free to message me!

I have been struggling to find more meetups that are a bit closer to Coachella Valley as well, most events look to be a bit more towards the OC and LA areas. I look forward to meeting with everyone that attends and am more than happy to do what I can to make them a regular occurrence!