Airbnb in Joshua Tree

[Nicole Masters]

Investment Info:

Single-family residence buy & hold investment in Yucca Valley.

Purchase price: $405,000
Cash invested: $40,000

We purchased a home to operate as a STR in Yucca Valley (Joshua Tree area) in September 2021. We have been researching and analyzing the market since February and started actively looking in June. We made 7 offers and eventually landed on this home. It needed cosmetic work and we spent 5 weeks there painting, updating bathrooms, and setting up furnishings. The house is a 3bed/2bath house on half an acre. We are currently in a snag with the permitting & it's currently sitting empty and unrented.

What made you interested in investing in this type of deal?

We love the desert and we wanted to invest in somewhere with great weather that had the option for short term rental and had high appreciation.

How did you find this deal and how did you negotiate it?

We found the deal on market and we offered 5k over asking.

How did you finance this deal?

We used a 10% down vacation home loan.

How did you add value to the deal?

We painted the whole house ourselves (talk about sweat equity), had a 320 foot privacy fence built in the backyard, updated both bathrooms, and swapped out mirrors, lights, and other fixtures to modernize it.

What was the outcome?

There was a 45 day moratorium put on applying for permits 3 weeks into renovations. Currently our house is sitting empty. We have listed it on Airbnb, VRBO, and Furnished Finders for 30+ day stays.

Lessons learned? Challenges?

The permitting issue has been a huge challenge. We've tried pivoting to 30 days but have had no luck in booking our place.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We used a real estate agent and lender.

[Jayson Cain]

Love how the bedroom turned out and kudos for you guys for putting in sweat equity! Really unfortunate about the permitting situation. Curious if you're also thinking of other exits (selling, cash out refin, etc)? I have some friends that are in the limbo with the permitting process.