All Forum Posts by: Phillip Vaughan

@Kevin Escobar like others mentioned, I am also just using excel, but I only have one rental at the moment. I think if I were to get up to three rentals I would start using Quickbooks. I have been using quickbooks for some other business for years and it is a proven platform. 

It's not surprising that Southern California is largely against short term rentals, as restrictions have increased over the years in places like San Diego, LA, Big Bear, and also the Palm Springs area, which is a very popular vacation destination. Yesterday the Palm Springs City Council voted in additional restrictions on the number of bookings per year, number of permits allowed per neighborhood, and also created a new "Junior" permit which allows 6 bookings per year and bypasses the cap on neighborhood permits.

Im curious if this will change anyone's strategy in the Palm Springs market or are there those of you still able to turn a profit despite the new restriction on the number of bookings? How is this affecting those of you investing in the area?

Here is a link to the Desert Sun article: https://www.desertsun.com/stor...

Hello Marysol, I actually live in the Palm Springs area and could definitely provide some insight for you. When looking at condos, in Palm Springs specifically, you have to be aware if it is located on leased land or not. The leased land condos are usually less expensive but come with additional fees and caveats. 

You might also consider the Palm Desert area as there may be more options and is centrally located in the valley.

I love talking about the Palm Springs area so if you need any additional info please feel free to directly message me.

Just came across a news article today that Expedia, who owns VRBO, is pitching in some money in order to keep STRs in some La Quinta, Ca. neighborhoods. I would be curious to know if anyone knows of any other instances across the country in which this has occurred. Here is the link to the article:

https://www.desertsun.com/stor...

@Eldrid Baez I would start following Luke Carl and Avery Carl. They are a great resource and helped me to navigate my way to my first STR in Florida.

@John Underwood Im with you! The Southeast part of the country seems to be a lot less hostile towards STRs. My wife and I just purchased one in Florida earlier this year and the relaxed regulation makes running the rental a lot less stressful!

@John D. that is an interesting point of view I have not heard. The caveat for Palm Springs is that they already limit the number of bookings, which will limit your profit. But in other cities that perspective would make sense as long as they didn't add other regulations on top of it.

It seems that many communities in Southern California have been moving to cap the number of STRs in a given city and Palm Springs may be jumping on that bandwagon. They already have a cap on the number of total yearly bookings you can have and this would be an additional restriction to limit future STRs. So far in the Coachella Valley, Desert Hot Springs and Indio are the most relaxed cities when it comes to STR ownership. Im curious if this would turn you off to buying an STR in Palm Spring or not?

Link to the full story is below:

https://www.desertsun.com/stor...

@Jerome S. I have to agree with Carlos on the population rise. Not only do we seem to be getting more and more tourists to the valley but also more long term residents. There is also a lot of building going on including an Ice Hockey facility which will also double as a concert venue, Surf park resort, Disney owned residential community, and on. There seems to be a lot of growth in the desert right now!

Which city you buy in really depends on your price point. There are some good parts of Desert Hot Springs I would buy in as well as Cathedral City. Palm Desert and Indio as well. Just don't expect a lot of cash flow. In my opinion, investing anywhere in SoCal needs to be thought of as a long term investment for appreciation, tax benefits and loan pay-down. Any kind of cash flow you might get is icing on the cake.

Here is a projection from Rabbu.com for a 4 bedroom home that is near the Indio Fairgrounds and in a decent community. The data should always be verified with other sources too, but these graphs are at least a quick and dirty way to see if it is worth looking at. If I were to buy an STR here in the desert, Indio is probably where I would purchase.

I have helped others buy STRs in Palm Springs but cashflow is tight due to the restriction they have on number of bookings per year. I would see that as more of a long term appreciation play. 

In a nutshell, if you are thinking 5-10 years out, either strategy would help to build wealth.