Los Angeles · Member since 2020 · 24 posts · 4 votes
Hi all! I'm researching STR options for my first investment, and I'm wondering what areas of California are prosperous for Airbnbs? I know Joshua Tree is booming, but I'm wondering if I've missed that wave? I'm interested in an area maybe near a Natl Park/touristy area/town, but not really into a city situation (feels like the competition and prices are too high in cities in Ca and I'm not really a city girl turns out lol). Anyone out there invest in STR in California other than Joshua Tree and have success? Thanks everyone!
@Leilani L. well Joshua tree is still cheap compared to big bear. We were looking to purchase in big bear & got turned off by bidding wars in RE big bear. We also looked at lake arrowhead, palm desert, Indio, & Lake Tahoe. We scratched out Lake Tahoe & palm desert due to Airbnb restrictions. Lake arrowhead is in the same boat as big bear. Prices are high right now. I love Joshua tree. I think that place has lots of potential. However to make money, you need to either look at fixer upper or even buying land & build up. I haven’t been to Indio but it has been on my radar since it’s still Airbnb friendly. Plus there’s massive money to be made once everything starts opening up. So yea we are still looking as well.
Suburban areas are doing well for longer-term airbnb rentals (30+ days). Places like Long Beach, Bakersfield, and areas with large hospitals are doing okay too with more travel personnel coming in. We rent 30+ in Anaheim and are testing that market out now. But it's a super limited option here due to STR restrictions.
Flipper/Rehabber · Lake Isabella, CA · Member since 2011 · 969 posts · 488 votes
5y
Affordable mountain towns can do really well. I have run short term rentals in the sierras and I have friends with a place in Big Bear that is doing really well.
Los Angeles · Member since 2020 · 24 posts · 4 votes
5y
@Gene Hacker yes I’ve been considering a mountain town like Mammoth. My concern is the “shoulder” season (fall/spring) when it’s low tourist season. Was this an issue for your rentals or your friends? Thanks!
Flipper/Rehabber · Lake Isabella, CA · Member since 2011 · 969 posts · 488 votes
5y
@Leilani L., Color change is actually a big deal for Mammoth, that that may help in the early fall. I personally invest in the Southern Sierra foothills so winter is the slow season here.
Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Leilani Leszkay I have no first hand knowledge about regulations, etc but I would def look into Big Bear, Mammoth and Lake Tahoe. Rural locations arpund the country with an outdoor draw that most people drive to when vacationing have done well and will continue to imo. Check out Airdna when doing your due diligence. Good luck!
@Leilani L. well Joshua tree is still cheap compared to big bear. We were looking to purchase in big bear & got turned off by bidding wars in RE big bear. We also looked at lake arrowhead, palm desert, Indio, & Lake Tahoe. We scratched out Lake Tahoe & palm desert due to Airbnb restrictions. Lake arrowhead is in the same boat as big bear. Prices are high right now. I love Joshua tree. I think that place has lots of potential. However to make money, you need to either look at fixer upper or even buying land & build up. I haven’t been to Indio but it has been on my radar since it’s still Airbnb friendly. Plus there’s massive money to be made once everything starts opening up. So yea we are still looking as well.
Realtor · Branson, MO · Member since 2018 · 272 posts · 283 votes
5y
California is tough. Lake Arrowhead & Big Bear don't really cash flow. Palm Springs, Palm Desert, La Quinta has regulations. South Lake Tahoe is trying to phase them out. SF/LA are both basically 30 day restrictions which isn't STR.
Maybe Truckee? Maybe Arnold? Maybe Bass Lake? I would probably avoid everything in the state though because of taxes & regulations. Every considered just popping over to AZ and do Lake Havasu City area? Those do really well.
Walnut Creek, CA · Member since 2020 · 285 posts · 318 votes
5y
@Leilani Leszkay South Lake Tahoe is going really well for us right now. There are still areas that allow Airbnb, so feel free to message me if you have any questions I can help with.
Real Estate Agent · Pasadena, CA · Member since 2017 · 274 posts · 255 votes
5y
I would also look into Idyllwild/Pine Cove, Running Springs, and that part of the state. I was just up in Big Bear and Idyllwild the past two weekends looking at places with clients and both towns were PACKED despite stay-at-home orders. The STR market is thriving in the SoCal mountain towns and many who are able to work from home permanently are flocking to the mountains. I would stay away from Mammoth if you're planning to purchase and be up and running this year because Mammoth is closed to non-essential travel and STRs are not supposed to be booking due to COVID.
Los Angeles · Member since 2020 · 24 posts · 4 votes
5y
@Gene Hacker yes that's so true about Mammoth in the Fall! I didn't know it is attracting visitors though, that's great. I stayed in Lone Pine recently for a trip to Mt. Whitney, and doubt that's a good area for airbnb, but maybe? how are the foothills where you are? I was also wondering about the Three Rivers area as a possibility
Los Angeles · Member since 2020 · 24 posts · 4 votes
5y
@Brian G. Yes exactly my thoughts! The outdoors are generally a good bet to draw visitors/tourists. I'll check out Airdna, thanks for the info, never heard of them :)
Los Angeles · Member since 2020 · 24 posts · 4 votes
5y
@Nadia O. this is super helpful, thank you! I'm surprised to hear you ran into bidding wars in big bear, but not JT? I'm open to a fixer upper situation, and love the idea of making a unique/cool place in the desert. I was wondering about Indio as well since the big festivals are there, but would it book otherwise I wonder? I was told to check out Airdna for help, in case you haven't heard of it (I hadn't!). thanks again for the help!!
@Leilani L. we didn't put an offer for any in Joshua tree. We went to checkout the surrounding areas...and didn't like what we saw. However we love the homes closer to the entrance of the park. But those homes are already very expensive. The only possible way to have something up to our standard is to buy land and build up. Like I mentioned, we are still looking.
Big Bear - we were only looking at moonridge (big bear lake). Again we have our must haves which happened to be everyone's as well. We were looking at certain type of homes such gambrel & A-frame. And they were extremely popular during summer 2020. We were outbid multiple times. We know it wasn't not the right time to buy. So we stopped looking.
this also happened in Lake arrowhead. A friend of mine was looking to purchase in Mammoth. She, too, said the prices are too high. It was definitely a seller market. As for now, the market has cooled off a bit. But for us, still not the right time to buy.
Indio is definitely a contender. We don't love the area tho. Our first pick was Palm desert, Second - Cathedral City. However STR hasn't been perceived favorably over there. So it's best to stay away for now. We'll keep an eye on Indio momentarily. If we find a great deal, we'll jump on it.
Also something to consider, location is one of the key factors for a successful STR. We take this to account evrytime we look at properties
@Nadia O. this is super helpful, thank you! I'm surprised to hear you ran into bidding wars in big bear, but not JT? I'm open to a fixer upper situation, and love the idea of making a unique/cool place in the desert. I was wondering about Indio as well since the big festivals are there, but would it book otherwise I wonder? I was told to check out Airdna for help, in case you haven't heard of it (I hadn't!). thanks again for the help!!
You're definitely going to see multiple-offer situations in JT as well as most of Southern California right now. Indio is nice but it's a different target market in Indio vs JT and a successful STR is predicated on being able to taylor the property's aesthetics to the target customer.
New to Real Estate · San Diego, CA · Member since 2021 · 12 posts · 14 votes
5y
Borrego Springs I heard is really gaining traction and the price of homes are in the $200,000 range which is great for CA. I personally just bought a multi-home in the heart of Julian, CA which is about an hour away from the city of San Diego and is really popular for locals to go to for weekend getaways. The town is very small so there is limited hotel rooms which is GREAT for people like us hosting AirBNBs! :)
Oh, Rancho Cordova is also good in the Sacramento area. Lots of people traveling there to work since the rise in tech companies that popped up around there recently.
Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
5y
All of these areas location is so very important and JT I am told is becoming harder to get Airbnb thru. Hazard insurance in some issues has gone up significantly too.
I'm sure you'll do well in Julian. Congrats on your acquisition. Another destination area gaining a lot of traction right now for STR's is Idlewild. Big Fan!
Los Angeles · Member since 2020 · 24 posts · 4 votes
5y
@Jessica James congrats on the place! I’ve been wondering about that area, seems like a lot of potential there. I’d love to connect with you and chat more if you’re open to it!
Los Angeles · Member since 2020 · 24 posts · 4 votes
5y
@Maxwell Ventura Idyllwild seems definitely like a good opportunity. Thanks for this! I thought Palm Springs would be tapped by now? I’ve heard Desert Hot Springs is another potential up and coming destination for “cannabis tourism” apparently, has anyone heard about this?
Real Estate Agent · San Diego, CA · Member since 2020 · 29 posts · 9 votes
5y
I enjoy going up to the mountains for my vacations, so somewhere in Julian or mount laguna could be profitable. I prefer to invest in the city since I live here in San Diego.