STR - Big bear lake vs Palm Spring vs Lake Arrowhead

[Nadia O.]

We have been thinking of purchasing a property either on Palm Spring, Big Bear Lake (Moonridge), or Lake Arrowhead.

Big bear lake seems to be our #1 choice since the city is more friendly towards STR. The homes in moonridge have increased significantly. Not sure what's going on there. but there have been multiple bidding wars going on in snatching almost every property lisitngs within the hour. We don't want to overspend money since our mainly interest is to gain high ROI. so we are cooling off the search for now.

Lake arrowhead is beautiful. However without lake rights, is it even worth it purchasing there? this will be our first purchase strictly for STR so we want to make sure the ROI will be the highest.

I'm aware that Palm Springs have many restrictions towards STR. plus many residents seem to want to ban STR. should we even consider the area then? any suggestions of other surrounding areas that we should even consider?

I used to own an airbnb rental in Orange County until the city pretty much shuts down all of us.

Hope to hear some of your feedbacks. thanks
 

[JJ P.]

I can speak to Big Bear. We owned and visited Big Bear for many years, decades actually. We were in BBC, close to the airport and some restaurants, etc. There are many, many small cabins in that area that serve as vacation homes and STR. From BBC, Baldwin Lake or Moonridge, you can walk to the forest but not the ski slopes or downtown. Big Bear has always been a tourist area. Peak season is winter, but lack of snow can have a big negative draw on tourism, as people think skiing when they see the snowcapped peaks from home in downtown LA. There was something like 100% occupancy over Thanksgiving and the Christmas/New Year holiday, and, back then, a lot of vacancies in between.

 Year round rentals don't have much demand and there's not a lot of employment unless you go "down the hill" for work.  That's a 2-3 hour r/t commute, so most people don't do it.   What's left are B & C type long term renters overall.  Retirees buy there, tourists visit there, people own long term 2nd homes there,  and a LOT of marginal people escape there.  

If you're hands off, I'd say branch out to a place that isn't already overrun with STR and where the restrictions are lax or non-existent. Look for a niche. A nice property that stands out- hopefully due to location and a lovely setting. Decorate it beautifully, perhaps in theme, and stock the kitchen nicely. A little hole in the wall gem with a pretty view and a small town feel might do far better for you than being one of hundreds and a worn out STR welcome from the locals. If I were hooked on the Mt/desert regions of so Cal, I'd look slightly further afield. Joshua Tree, maybe. Pioneertown? Lucerne Valley? Spring Valley Lake on the backside? Pinon Hills up against the mountains? Idywilde? Julian? The old areas of La Quinta? I don't have a feel for these areas currently as STRs, but perhaps one of them might work for you. The price points are better and that will give you a little leeway with your cashflow while you build your business. You are building a business, hopefully with gushing reviews and repeat customers, but it all takes time.