Joshua Tree/Twentynine Palms STR Property Purchase in Fall 2021

[Nick Peterson]

Hello,

For the past 6-8 months, I have been researching and monitoring raw land for sale in the Joshua Tree/Twentynine Palms area to construct a stick-built home as an eventual STR. The area has obviously seen incredible returns for existing STRs over the past five years. Using OTA STR reports (Airdna, etc) and looking at current nightly and occupancy rates, this still seems like a sound investment market.

For those who have STRs in the area or have considered it, what are your thoughts on getting into this STR market in Fall 2021 and looking forward? Any major concerns, tips or thoughts you could share for a newbie?

A few relevant details:
--The City of Twentynine Palms still seems welcoming to STRs as long as you register, follow ordinances and pay your transient guest taxes. They've met a few times this summer to clarify rules, none of which seem to be game changers.
--Lots I'm looking at have water and power at the street. The city's water district has quoted me around $8200 for installing a water meter. SCE power to the home could be around $8-12k. My realtor quoted the average septic system at $5-6k.
--Even with Covid, Joshua Tree National park had 2.4m visitors in 2020. 2019 had 2.988m and 2018 had 2.94m visitors. STR supersaturation does not seem to be a concern given annual visitors vs existing lodging.

Thanks!