I pulled the trigger on my first investment property

[Jennifer Wyman]

Investment Info:

Single-family residence buy & hold investment in Indio.

Purchase price: $360,000
Cash invested: $30,000

I LOVE the desert. It's an easy 2.5 hour drive and is the perfect, relaxing getaway when life in LA gets too hectic. As a long time want-to-be real estate investor, I started researching areas and neighborhoods in La Quinta and Indio, that I could afford as a first time home buyer and investor. After more than 9 months of searching, connecting with Realtors and crunching numbers, I found a beautiful, brand new development and pulled the trigger on my first short term rental investment property.

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

When you think of events the desert, you think of outdoor concerts - read Coachella. Reason enough to invest in a short term rental. However, it's the lesser known events that have gusts making the trip year round. From horse shows to tennis tournaments to art and wine festivals, there are TONS of activities that attract renters. In addition to these buzz worthy events, Indio is gentrifying. I wanted to get in at an affordable time in a city that is seeing growth and making improvements.

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

After 9+ months of looking at properties in La Quinta and Indio, this was a brand new development at a great price. I worked with an amazing real estate agent to help me find this community, negotiate the deal and select a great location.

How did you add value to the deal?

I knew interior design would go a long way with short term renters. Guests are looking for high design and luxury touches on a budget. From flooring to the granite countertops to the decor, I paid extra attention to detail in making these selections. And, I was able to do it on a tight budget. I did spend a lot of time shopping, doing price comparisons and building furniture myself. However, the time commitment has been well worth the great reviews and has led to more bookings.

Lessons learned? Challenges?

Buying new does not necessarily mean move in ready. There is plenty of unexpected work to do, like installing lighting in the living room and bedrooms. On a tight budget, this means building ceiling fans yourself. As a first time buyer, it's natural to get emotional about the purchase, no matter how hard you tell yourself not to. I could have saved money on certain areas such as the backyard. Lesson learned for my future investments!