Help! Looking to invest in Crestline / Big Bear CA

[AJ Santiago]

Hello Everyone!

I'm an investor from Anaheim CA, but currently looking to invest in the Crestline/Big Bear area! According to the local realtors I met with, the market here is very hot with little inventory. However, after driving around for hours I think there's potential for off-market deals. From what I observed, the community is very tight & close, everyone knows eachother, and they hold lots of community events. (although due to covid this is limited).

Anyone has any experience/knowledge in investing in this area ? Houses seem to be in the 1900-1950s. With that said, what are things to look out for (weather, snow, insurance, sewer lines, etc)? Any insights on doing a fix n flip vs. STR/rental up here?

Any tips/advices/insights are greatly appreciated! 

[Lynnette E.]

I had a primary residence from1999 to 2017 in Crestline. Rentals do good, but screen, lots of scammers for LTR, and STR can get the entitled wealthy for Orange County who are messy and destroy and steal stuff. Watch out for adults renting for their kid's youth group and the actual renter is not even there, just unsupervised 17 year old football players and cheerleaders.

One thing to consider in buying a house is emergency response. The long twisty roads that go through to another road is better than a dead end one. The emergency vehicles do not want to get trapped on a dead end street where they may not be able to turn around. Even if the street end looks like a fire truck could turn around, that is not the case when there are snow berms or a neighbor with a STR and 6 cars parked on the street. So response is slower, as they park in a safe area and string hoses or carry the medical stuff to the house.

Look for a place with a lot of off street parking.  When it snows cars are not supposed  to be left on the street, but pulled off onto the lot or a parking deck.

Know the ice/snow load.  South facing houses/streets (like on the side of a hill facing south) get less ice build up.  North facing slopes have snow and ice build up much longer.  Steep roads do get icy, learn about black ice.  

Make sure the driveway/lot/street drainage does not go into your front door or garage, many do.

Be aware that many houses started as Summer cabins in the 1950's and were added on and added on without permits or any building skill.  Many upstairs bedrooms do not have egress that is needed in a wildfire area, so check if the windows open, and if they are large enough for egress.  Look for cross or blocking on the joists for earthquake and general stability.  The unskilled builders sometimes, often, did not frame well, especially look at open decks you can see under for a general idea of the skill set for that house.  If the house floor seems to jump, bounce, or wobble when you walk on it, that floor and maybe the walls, were not likely built correctly.

Check EXACTLY where the house is located based on the fire zoned maps.  Some areas are defended more than others.  Ask to see where the fire and fuel breaks are to protect that area.  eg. Thousand Pines Camp at the end of Thousand Pines Road has fire/fuel breaks around the perimeter of that property which protects the houses and main street of downtown from fire entering from Silverwood Lakes area.

Look into fire insurance.  Many insurers will NOT write a policy in the mountains.  My last policy up there was with Lloyds of London.  I heard after I left that they are not writing any new policies.  California Fair Plan, ran by the state, has crappy fire only insurance and you will need a wrap around general and liability insurance with them.  The whole area is a wildfire area.

If you use an agent, use one on the mountain.  Using one off mountain will not get your offer as well received because off mountain agents do not like to come up for inspections, etc. and dump that work on the local agents who resent doing it and not getting the commission for that part of the deal.

Look at the zoning.  My old house was zoned for 1-4 residences.  When I did a room addition I purposely added electricity and doors so that the house could easily be split.  It is 3 levels and each level has an exterior door too.  Some single houses can be split pretty easily as many are built on a hill.

Crestline is a small, homey, nice community.