All Forum Posts by: Paul Haefele

I’m based out in the High Desert, mainly around Victorville, Apple Valley, and Hesperia, so I can give you some first-hand perspective.

Rents here are strong. A clean single-family in Victorville or Apple Valley will lease quickly, and typical rents run between $1,800 and $2,400 depending on size and location. A lot of tenants come from LA and Orange County after being priced out, which keeps demand steady. Vacancy usually isn’t the concern. The bigger challenge is making sure you place the right tenant.

Appreciation has been more steady than the coastal markets. You don’t see the extreme ups and downs that Los Angeles experiences, but values have consistently trended upward over time. During COVID, demand jumped as people moved out here for more space, and while things have cooled off a bit since, the long-term outlook remains positive.

On the job side, stability is decent. The local economy is spread across healthcare, education, retail, and a lot of logistics and distribution. Major companies run distribution hubs here, and many residents also commute down the hill for work. There’s also a major project underway in Barstow (the BNSF International Gateway). It’s a multi-billion dollar rail and logistics hub expected to bring thousands of jobs to the region over the next several years, which should only strengthen housing demand across the High Desert.

If you’re comparing markets, Santa Clarita and Canyon Country are closer to LA and more expensive, which makes them attractive to families looking to move up. The High Desert cities like Victorville, Apple Valley, Hesperia, and Adelanto are where investors tend to find the better entry price points along with reliable rental demand.

In short, there is demand, appreciation has been steady, and the job base provides a good level of stability. If your goal is cash flow with room for long-term growth, these areas are worth a closer look.

Hi everyone,

I’m a loan officer in California, and I have a situation where a client is looking to develop 10+ single-family detached units on a large plot of land that the client does already own. We’re exploring options for financing, possibly through a multifamily commercial construction loan. Has anyone had experience with this type of project? I’d love to hear about any lenders or strategies that worked well for you in similar situations.

Thanks in advance for any insights!

Quote from @Anna Brown:

Hi all, I have not occupied the home since 2017. The property has been listed on my taxes using a Schedule E for the last two years. After speaking with some people, I do qualify for a 1031 and am being guided to buy 2 properties in the High Desert (Victorville) because it will have the highest ROI. Maybe he's telling me this because he can only sell in CA, but is this the best move?

Hi Anna I'm an investor and lender located out here in the High Desert area including Victorville and would be happy to help look over some numbers to make sure that where you are being guided is indeed a good idea. I know the area well being born and raised here and could help you run some numbers to help you make some informed decisions.

What part of the high desert are you looking? I've grown up and work in the high desert with rental properties as well and can say there is definitely no shortage of quality renters as long as you have a good screening system in place to make sure of it. It will also depend on the location and neighborhoods you are looking in obviously but my real estate office regularly gets 100+ applications for each property we put up for rent which would give you plenty to pick from. It is a lower demand for room rentals but there are always people looking for places to rent.

@Alexis DalPont Hi Alexis, sorry for the late reply. I do self manage at the moment but the company I work for does have a property management department that is very good if that interests you as well. As for areas in Barstow I can't speak on specific areas on here of course but there are not too many that I would personally avoid. 

I actually live in Barstow and have a few rental properties that cash flow very well. Finding the properties that will work for you is not a real issue but like mentioned before you have to be careful with tenant quality and location. I love all of my tenants so it can be done but you have to be ready to really screen well and be patient/careful with everything that goes in to selecting great tenants.