All Forum Posts by: Kristi Kautz

Hi! I can create 3D floor plans, 3D models, contractor drawings, and realistic renderings. Since I'm not based in Pittsburgh, I'd need you to send me the dimensions.... but if there's someone locally who you can hire to measure your units and provide a 2D floor plan, that would make things a lot easier! If you're still interested, shoot me a DM and I'm happy to schedule a call and talk through the process with you.

I'd be interested to know the answer to this also!

@Ross Gallo You're very welcome! Yes, let's definitely keep in touch. And let me know if you happen to need an interior designer or someone to do 3D renderings, as well

 @Alice Chen - On the contrary, there is a shortage of LTRs in the Joshua Tree / Yucca Valley and surrounding hi-desert areas. Many locals are desperately searching for a place to rent long-term

Hey @Ross Gallo - excuse my delayed response... holidays got the best of me!

Re: the SBC cap, I was actually referring to a cap on the total # of STRs. But yes, they did put one on the # of permits each person can have recently.  

In terms of 30-day or longer stays, I personally don't mess with those, because then renter's rights can take effect, and the house has a higher chance of getting wrecked the longer a guest stays. I've heard some hosts in other markets have had success with 30+ day stays, but I think those are usually markets where people are traveling for work. Local renters in the hi-desert aren't generally known for taking great care of long-term rentals, from what I've heard. But for that same reason, if I had to choose between renting for 30+ days vs. renting long-term, I'd choose 30+ days, hands-down.

And did I find it challenging to manage the property when I was living in LA? It's a bit complicated... but the short answer is yes. I quit my full-time advertising job to renovate and manage the STRs, so that wasn't an issue... and I also had a property manager, so once the houses launched on Airbnb, all I had to do was make sure they stayed in great shape and that my PMs were staying on top of everything and not letting things slip. That said, even doing just that took WAY more time than I ever imagined, including frequent trips to the desert to do quality control on the houses in person (which I find to be SO necessary, regardless of who your PMs are). So while managing from afar wasn't impossible, I do think it would be much more challenging for someone who has a full-time 9-5 job in LA. So if you go that route, I'd suggest making sure you find a top-notch PM!

Hi! I've had STRs in JT since 2018 (purchased the houses in 2016), and now I'm living here in the hi-desert full-time, so thought it might be helpful to contribute my thoughts...

1) Building a house from scratch, especially in the Joshua Tree area, will probably take much longer than you expected. Whatever your contractor is telling you, you can usually double it. That's been my experience, at least. Who knows, the recession might come and go by the time you're ready to rent.

2) Joshua Tree is definitely over-saturated with STRs at this point. We launched ours in 2018, and in 2019, Airdna listed us as the #1 most profitable STR in Yucca Valley. 2020 and 2021 were AMAZING, but this year, our gross is about 20% less than it was in 2019. And we've put a lot more money into the houses just to keep up with all the new STRs. The culprit for the over-saturation is all the press Joshua Tree has received since covid. And I think us being on Airdna's "top places to invest" list just after the pandemic has been a big contributor to the over-saturation, as well. So you definitely want to make sure your house stands out from the competition with its architecture, amenities, decor, location, etc. I would suggest taking the time to do a deep dive into who your target market is and who your competitors are, and then putting a lot of thought into how to use that info to your advantage.

3) You said you're near Joshua Tree, so not sure whether you're in San Bernardino County or the Town of Yucca Valley, but I hear SB County is looking to put a cap on the total number of STR permits they issue starting March 2023. I hope that doesn't happen, but just something to be aware of. And Yucca already has a cap in place.

4) When deciding whether this will be a good investment for you, it's important to take all the factors into consideration, not just financial. When we decided to invest in the hi-desert, we were living in LA at the time, so we knew we could take our own personal vacations there when a house wasn't rented, and we could use it to celebrate our birthdays and holidays, and one day we could potentially retire there. So in the case of a recession, as long as the STRs are still covering the mortgage and expenses, it's still a good investment for us. For an outside investor who is strictly looking for the financial gain of it all, I'm not sure the ROI makes sense anymore unless you have a SUPER special property or location. But only you can determine whether this will be a good long-term investment for yourself.

4) When it comes to STR performance, I personally don't believe it makes sense to classify the pandemic/post-pandemic as a typical recession and compare it to the recession that everyone's predicting will come in 2023. Following the 2020 lockdown, people were itching to get out of their homes, but they couldn't fly and didn't want to stay in hotels, so they all fled from LA to the nearest Airbnb destination, which was Joshua Tree. In that sense, 2020 and 2021 were anomalies. If we have a recession during a time where there's no social distancing, where people aren't locked inside their homes, hotels aren't a scary place to be, and airports aren't shut down...I doubt we see the same surge in STR bookings. But I also agree that this industry is reasonably recession-proof because those who normally travel out of the country for vacations will probably just do their vacations within the US to save costs.

And that's my two cents!

Hi Pietro - my husband Matt Kautz is a realtor for the Joshua Tree area, and we've owned airbnbs here for years, so he knows the STR market well. Feel free to reach out to him - he'd be happy to help! 818.636.8757

@AJ Singh - I'm pretty sure Big Bear Lake just issued a 60-day moratorium on new vacation rental permits, so I'd avoid that area for the time being!

@Paul Gostanian I think it’s a well-written letter, but I wouldn’t mention you’re trying to purchase “some properties” and instead say you’re trying to find a house for you and your family. Many high desert locals have been very vocal about how greedy they think OOT real estate investors are, especially ones who are coming here and trying to buy houses to convert to short term rentals, because there is a major shortage here right now for locals who need long-term rentals. They’ve also been complaining in the local groups and on Nextdoor about how annoyed they are to constantly get calls and emails from investors trying to buy their houses. So maybe keep that in mind when crafting and sending your letters too.

@John P. - I've only worked with SB county - all my properties are unincorporated so not in the city. The county is pretty helpful when it comes to questions about permits and building codes. I'm pretty sure they don't advise on utilities, but you could ask them. As far as I know, you have to contact the utility companies directly. That's what I've always done. Don't expect to get a quote from Edison unless you have well-developed plans in place. Many of my friends have said that the county is much more helpful if you just show up to their office in person, and they're usually glad to answer any questions you have. That said, I've never actually been to their office and have done all of my communications via phone and email, and that was fine, although it probably took a lot longer than if I had just gone in.... but it was during covid the last time I dealt with them (for issues getting my STR permit), so I wasn't able to go in person at the time. I don't think well-developed plans would be necessary if you just want to ask them questions, but you'll definitely need them when applying for a building permit, depending on what you're doing. Hope that helps!