Palm Springs

[Mike R.]

I have had a vacation rental in Big Bear Lake for 2 years now which has done very well  (over 200 nights a year- grossing over $50k a year) on less than 200k investment. I'm also managing 3 other properties in Big Bear which are doing just as well. I was thinking of buying another place but since prices have gone up in Big Bear and not much has been on the market I was considering buying a home in Palm Springs instead.

Would love to hear what people think about the area and what kind of returns and how many nights they have been getting. 

Obviously I'm looking for a mid-century modern which seem to price in at least $525k so not sure I'd get even close to the ROI I get in Big Bear- but thought it would be nice to have a home in a different place so I'm not "All the eggs in one basket" (And who doesn't want to own a Wexler long term?!)

Also any issues with short term rentals? 1 or 2 nights? I Heard PS is taking meetings on this- but any chance they will ban short term like Ojai just did? 

Thanks for any thoughts on areas of PS, what renters are looking for and avg gross per year. 

[David M Trapani]

Hi Anna,

If you're interested in STR's Palm Desert is out. Palm Springs is great, however, pricing is higher (almost double) and you can only have 1. La Quinta is hot. You can still get a pool house near downtown LQ for $375k-$400k. I don't think this will last long at these prices as folks from LA and San Diego (and other places) are on the track and it appears there's upward pressure on appreciation. These should generate around $50k per year gross per house.Permitting is user friendly. As you've intimated, want to avoid 50+ communities, and I would add - avoid gates and HOA's. The less restrictions the better. I know some very good agents, if you wish a referral, please let me know. Cheers & good luck.