Anyone have rentals in the CA High Desert?

Question

So Cal investors: Does anyone own rentals in the High Desert areas like Barstow, Apple Valley, 29 Palms or Victorville? Or even Hemet or Moreno Valley? Do you think it's more difficult to rent in these areas because of the smaller population and less industry? Do you find that the tenants are generally long term? I'm looking at Riverside and San Bernardino counties and welcome any feedback you have about owning rentals in these areas.

TK

Fernan Nava · Answer

No problems at all getting renters. Smaller areas like the high desert will get even better because a lot of people will give it a second look when trying to get away from big suburban areas. However, it depends a lot in ur strategy of course. This area is best for cash flow.

Account Closed · Answer

I used to have rentals in San Bernardino (still have one, actually) and in Victorville/Apple Valley. Those are pretty big areas and we never had trouble finding tenants.

I now only manage properties in Big Bear, CA, where there is a much smaller pool of people, and I still find tenants fairly easily.

You won't have trouble finding tenants in those areas.

Matt R. · Answer

I have a friend who just sold his 8 units in Studio City for a NNN in Barstow. To me that was a mistake but it will work out for him either way. I am pretty sure I would prefer Vegas if I was that far out. Barstow does have some major employers defense related not sure how long those will be needed but if they ever went away....well it could be bad. I would think the AV is more golden for rentals too.

Rick H. · Answer

My friend Tony Alvarez is still the 800 pound gorilla in the High Desert / Antelope Valley area (aka the "AV").

Tony has been slowly threatening to retire from real estate for most of 2014. Not sure if he still has any material online however, he'd be your best bet for accurate info, as well as his buddies who also have rentals there. They have a High Desert REIA that meets quarterly in the Palmdale/Landcaster area.

I have other friends who have rentals in the other High Desert areas like Victor and Apple Valleys. I think Rick Solis occasionally posts in BP however he's kept pretty busy appraising properties for Bruce Norris, et al.

I know plenty of other people living in the greater LA area who area buying there with the intent of holding as rentals. Management could be a challenge unless you have scaled up or prepared to delegate a portion of your gross income to local managers.

I do know that, after a round trip drive of about four hours from my primary home and back, there isn't enough day left to do much else. Something to think about.

In the meantime, there's some great material out there to study on lower and mid-range property rental management.

My personal favorites: "Fixer" Jay Decima and Mike Cantu.

Elizabeth Colegrove · Answer

I know a lot of people who rent in the 29 palms area and so very well. I think it's like everything what you pay for it, location and demand/supply determine your success

Payal Z. · Answer

Hi, I was wondering if you were able to find out more about these areas. I am exploring these too.