All Forum Posts by: Misty Martin

If you love the desert areas I would say explore the surrounding neighborhoods to JT... people definitely go there. Joshua Tree is NOT appraising and properties are selling for upwards up 100k over asking on some pretty tiny places, it's been wild! If you a truly investing then you'll seeing the dollars just aren't in it right now. There are still plenty ty of investing opportunities just look to the outskirts is my opinion! 

@Dmitriy Fomichenko Thank you!

@Elise Marquette I would say I spend about 5-8 hours per week of my time managing it. This is in odd increments. It is being available 24/7 but most of the time it is just answering an email here and there. Then some days you will spend a couple hours redoing your listing, changing your pricing, visiting your property, etc. Yes the cash flow is 100% worth it. I lost an income in the pandemic and this has completely replaced it plus so much more and allowed me to still be able to go back to my other job when it allows me to return. I do not have any experience with long term other than allowing some people to stay for extended periods and I like short term much better at least in my limited experience. You have more rights over asking them to leave. Less wear and tear on the property if it's a property you care about. If it's just an investment and nothing special and cheap then long term could be a good way to go in some places. In soCal everything is so expensive it's hard to see a return on long term rental investments. 

Investment Info:

Single-family residence buy & hold investment in Lake Arrowhead.

Purchase price: $553,000
Cash invested: $128,000

Short-term rental all done on Airbnb. I manage and host.

What made you interested in investing in this type of deal?

After looking at duplexes and cities out of state we started to feel getting something closer that I could manage would feel more comfortable. After researching with some friends that have mountain properties doing well it was worth looking into. Seasonal tourism is steady and being a destination location it attracts more than just the nearby cities. So far it's been perfect.

How did you find this deal and how did you negotiate it?

Found a wonderful realtor in the area that has been a local for 20+ years. Her knowledge helped us a lot. We lost a few of the first homes we offered on until we asked her exactly what do we need to do to be taken seriously as we are not all-cash buyers.

How did you finance this deal?

20% down and a 30yr mortgage loan

How did you add value to the deal?

Honestly, at the end of multiple counteroffers, it came down to our credit scores, money in the bank, and if we were the most trustworthy to not back out in the middle of escrow. I think that's happening a lot with site unseen offers, etc.

What was the outcome?

Completely smooth escrow, not one bump in the road.

Lessons learned? Challenges?

We learned we needed to be more aggressive if we wanted property and also not to push when the property doesn't feel right just because you may be desperate after missing out on a few. We think if we buy homes that we ourselves feel good in and that has value it will translate in the way we manage and host it. So far that is really working out magically.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Lisa Bolanos of Elevate Realty-Crestline to Big Bear, Darlene Mitschke of The Money Store

Did PS pass an STR law that you have to do 30 plus days on rentals?

Big difference between BBC and BBL. Big Bear Lake you must have face to face key exchange. That means you have to either live there or pay a management company to do it. But if the property is amazing and worth it, maybe it works, just have to run the numbers :)