All Forum Posts by: David Brooks

I posted this link on another thread, but this is where I started the process of getting the STR permit for the unincorporated mountain or desert areas of San Bernardino county - https://wp.sbcounty.gov/ezop/p... I'm happy to answer any questions as well. 

I was able to sketch up my own plot maps in an hour or so, and it was adequate for the permit process. Aside from the afore-mentioned snafu regarding an un-finalized permit, it was a smooth (if slow) process. 

I just started in Arrowhead this year, so I don't really have enough data to make any realistic predictions about cash flow or ROI yet - Lake Arrowhead is highly seasonable, and this year is particularly difficult to generalize from. My current expectation, once things settle down, is to see a few hundred per month in cash flow on average - hopefully a bit more once I bring a few initial costs down a bit. I'll be updating my profile with more information on it once I have a bit more data.

There are a few things to keep in mind about Arrowhead specifically - namely, that it's in an unincorporated mountain area, so you're dealing with San Bernardino county for your short-term rental permit (if you go that route), and secondly, lake rights are tied to the property. Bear in mind that an STR must have off-street parking, and not all properties in Arrowhead do.

The permit is pretty straightforward, and currently costs $667 for the first two years, and $489 every two years after that (but these prices have gone up in just the last few months, and probably will again). For anybody considering an STR in either the mountain or desert areas of unincorporated San Bernardino County, the information can be found at https://wp.sbcounty.gov/ezop/p...

In my assessment, the real value of lake rights won't be realized until you sell the property, because STR tenants/guests can't really use them. If you end up with a property in the Arrowhead Woods area (one of the areas with lake rights), you'll have to deal with an architectural committee for any changes, including removal or trimming of trees.

@Matthew Forrest - you asked a good question, and there are three main reasons why I'm looking outside of Lake Arrowhead: first, I'm looking to diversify my properties (to even out cash flow and reduce exposure to any one particular area or type of visitor); second, because I'm looking to have an assortment of places I and my [extended] family can enjoy on occasion; and three, I am looking to build a broader base of knowledge to best serve me going forward.

I looked into Idyllwild and Big Bear before eventually landing in Lake Arrowhead - I couldn't see the ROI in Idyllwild, even though I personally like it more! I did some fairly extensive evaluation early this year, and I've looked again as I'm trying to nail down my second property, and I think it'd be a hard sell - but numbers don't always tell the whole story, and it might work for the right owner/investor.

My opinion of Idyllwild is that the market of potential renters is pretty narrow; it's a bit too far from big-name attractions or activities and amenities (grocery stores, etc) to really pull in the occupancy and rate to cover expenses, let alone cash flow. 

Another not-insignificant factor is that the whole mountain was basically inaccessible for much of 2019 to clean up after the wildfires (though BB and LA were a bit difficult to reach recently as well), which could be impacting occupancy as it may have simply "fallen off the radar" of some visitors.

@David VanWert

Thanks for the insight; the Mammoth/Yosemite/Mono Lake is definitely on my radar as well. CA is definitely a tricky place to invest. For my next property or two, I'm looking to make sure I'm close by and that I feel I can really understand the area, so I'm looking to stick close by. Might be tough to do, though.

I've been reading BiggerPockets for awhile and gleaning some useful information, and decided it was time to get more involved. I purchased my first investment property in 2004, sold it in 2006, and sat back for the last 14 years until picking it up again this year with a SFR in Lake Arrowhead that I'm running (successfully, so far) as a STR. Ultimately, my goal is to parlay some capital and sweat equity into a collection of properties, both STR and traditional. REI is an exciting adventure that I'm looking to get more involved in, and I'm here to get advice, give advice, and hopefully build a network of like-minded folks while I'm on the journey. Great to be here!

I - like many of us here - are on the lookout for one of those "special" places where it makes sense to buy-and-hold for STR income. It's something I've had my eye on for a few years, and I pulled the trigger on a cabin in Lake Arrowhead earlier this year and have been doing quite well with it (so far - winter is a good time for an STR on the mountain, especially during COVID).

I'm looking for the next spot; right now, numbers are telling me the Joshua Tree/Yucca Valley/Pioneertown area is my next best bet, but I'm worried about oversaturation. Before I pull the trigger on anything, I'm trying to explore other areas in Southern California with potential. I'm looking for advice, but also want to share my own findings for others in a similar position. 

Some areas I've been checking in to include Redlands, Idyllwild, Julian, and Palm Springs - but I can't shake the feeling that there is a perfect area I've missed. I'm happy to provide information about my research and journey thus far, and I'd love to hear what other people are seeing in this general area in these strange times!

@Katy Reid Ours was for a simple bathroom remodel, and after tracking down and talking with the contractor on the job, it seems the county lost the permit finalization anyway. 

They will do at least a drive-by for the STR inspection, at which point they might spot an unpermitted structure or addition - there's a chance it might get you in to trouble. I know they are being really careful about permits on STRs in the unincorporated areas right now.

We received our STR permit on our Arrowhead SFR this summer as well - they only did an outside drive-by for the STR inspection, but the process itself was a chore; it took us nearly three months from application to completion (partially because they found a five-year-old unclosed building permit on us literally at the last minute).

Also looking in to JT/YV for our next STR, so very interested to hear from others with experience/advice in this arena!