All Forum Posts by: Andrew Mac

@Cody Barna Thank you for the advice, much appreciated.

@John D. Thanks John - here are some details on this. The property is close to 2,500 sq ft with an 11,000 lot with an oversized pool/spa. Honestly not the most modern house in La Quinta but it needs no structural or cosmetic work and can pretty much be used as a rental as is. I had 24 hours to close on it since my first-choice loan option flopped at the very last min (and sellers were backing out if I didn't close in 24 hrs), so I had to opt for a 10% hard money with no points that could close the same day, and I am currently refinancing out of it in case I decide not to sell the house. My options are to either rent it out as a long term rental at slightly above $3,000 per month or resell at around $600K, netting a bit over $100K. I think that neither is a bad option per se, just not entirely sure which would be better with the market seemingly getting hotter by the hour

@Mark Futalan 

I'm also in La Quinta, but wasn't able to obtain the STR permit yet due to the 90 day moratorium on new permits. Will be applying for one in Nov once the restriction falls off. I guess it all comes down to whether it's more beneficial to keep the property I bought at a good price as an investment or get the $100K+ and invest somewhere else. My only concern is if my refi doesn't go through on this property, the rental income generated will probably not cover the expenses associated with it, which is less than ideal. Cash isn't an issue at the moment, so that's another reason why the resale profit isn't really making much of a difference for me. If you were in this situation, what would you do?

Hi everyone, been following BP for quite some time now but just made an account and wanted to get your opinions on the situation I find myself in.

I closed on a property in the Coachella Valley about a month ago, paying $450K with the intention of using it as an AirBnB rental on a part-time basis. Like many other markets, the inventory in CV has dropped to all-time lows, and, as of right now, I have the option of reselling this property for more, netting around $100K after cap gains/fees/etc.

The other option is to let in a long-term tenant right now at around $3,000 per month. We had to close the property extremely quickly, so I am currently in the process of refinancing to get a lower rate. If the refinancing goes through, the property should cashflow around $1K/month. 

My dilemma is made worse by the fact that there is nearly no inventory in this market with favorable short-term rental specs (no HOA, no land lease, no rental restrictions from the city, etc.), and this property fits them all. What would your recommendations be in this situation? Should I take the cash and invest somewhere else or keep the property and use it as a long-term investment? Your advice is greatly appreciated!