Joshua Tree/29 Palms properties for Rental Arbitrage

[Yevgeniy Kharitonov]

Hi. We're looking to buy our first investment property and looking at Joshua Tree/29 Palms area. Idea is to buy a property specifically for Rental Arbitrage. Are there any companies out there that can look at the specific property and provide their opinion on whether or not Rental Arbitrage will work? Also, anyone aware of any permitting issues in the area? Looks like they are very STR friendly and want to bring in more business. Any insight, suggestion will be greatly appreciated!
 

[Jason Kudo]

Regarding regulations. The town of Yucca Valley and 29 Palms both have STR-friendly regulations. Yucca Valley has implemented a 10% cap and 29 Palms has a cap of 12%. Both town governments are at about 50% in terms of where they are with the caps. Plenty of room to grow.

There are several reasons why owners choose to LTR versus STR. Mainly because there is a shortage of LTRs and high demand for them so LTR rent prices have increased dramatically over the last couple years. The other big reason is that STRs in the high desert have a certain look and in order to achieve that look, owners typically have to spend more money in reno to get to that STR look and this includes amenities that your average LTR in the high desert is missing such as outdoor showers, hot tubs, etc.