One of the key components of Coachella Valley real estate investing is knowing where to purchase. Whether you want to invest in a second personal home or rental property, choosing a desirable location is paramount.
Sometimes people say that investing isn’t worth it because they are only netting $150 a month on the rental income, but it seems to be easy to overlook the fact that someone else is paying your loan down. Effectively, you are putting someone else’s money into your savings account every month!
Find the Right Location for Investment Property
The last thing you want is to be stuck with a rental property in an area that is declining rather than stable or picking up steam. A city or locale where the population is growing and a revitalization plan is underway represents a potential investment opportunity. When choosing a profitable rental property, look for a location with a decent school district, and plenty of amenities, such as parks, malls, restaurants, and movie theaters. In addition, a neighborhood with low crime rates, access to public transportation, and a growing job market may mean a larger pool of potential renters.
Best Places to Buy Investment Property in Coachella Valley
Real estate is very local. Local knows better. So let’s take a look at where local investors are buying investment properties in Coachella Valley.
The recent housing market data shows that Palm Desert is an investment favorite with Coachella Valley Residents. The population in Palm Desert is 52,807, Annual Growth Rate is at 1.33%, Average Household Income is $105,011. Detached homes price in Palm Desert is $500,000. Palm Desert High ranked 2,250th nationally and 346th among California schools in the 2019 U.S. News Best High Schools rankings. Scheduled to open in 2022, DSRT Surf will give surfing enthusiasts, from novices to pros, a year-round opportunity to catch and ride their perfect wave in a climate that averages 360 days of annual sunshine. The City has partnered with the University and the Coachella Valley Economic Partnership on the Palm Desert iHub to utilize the high speed broadband system that serves the neighboring university campuses to attract new technology based startup companies and related jobs, further expanding the regional economy. Near the university campuses, commercial development continues to thrive in Palm Desert with a new retail center called Monterey Crossing under construction at the northeast corner of Dinah Shore and Monterey Avenue. These are just a few of the many exciting changes taking place in Palm Desert.
Palm Springs came the 2nd spot. The population in Palm Springs is 47,840, Annual Growth Rate is at 0.90%, Average Household Income is $91,907. Detached homes price in Palm Springs is $822,500, up 22.9% for the year. Real estate and vacation rentals also remain a bright spot in the city’s economy, with Airbnb recently recognizing Palm Springs as one of its top 10 trending destinations. The much-anticipated new Downtown Park also continues to move forward as one of the final pieces of the renovation plan that has revitalized downtown over the last four years. Set to open in mid-2021, the park will feature palm groves, a small amphitheater, fountains, and open areas for residents and visitors to relax and enjoy Palm Springs’ scenic views. Another exciting addition on the horizon is the new Agua Caliente Cultural Plaza. Honoring the rich history and culture of the Agua Caliente Band of Cahuilla Indians. The Plaza will feature the Agua Caliente Cultural Museum, The Spa at Séc-he that celebrates the sacred Agua Caliente Hot Mineral Spring, a Gathering Plaza, gardens and a meandering trail.
La Quinta was the 3rd favorite with Coachella Valley Real Estate Investors. The population in La Quinta is 40,754. Average Household Income is $126,444. The Median sales price was up 27.5 percent to $650,000 for Detached homes. La Quinta Cove residents have been missing a full-service grocery at the Tampico Plaza since the Ralph’s store closed in 2014. Due to community pressure and diligent city follow-up, the property owner finally secured a new tenant to take over half of the former Ralph’s building. Grocery Outlet of Emeryville, Calif. will begin remodeling the structure soon with an anticipated opening of fall 2021.
The 4th favorite was Indio. The Median Sales Price was up 9.7 percent to $384,465 for Detached homes. Much more affordable than 3 top cities. Indio, the Coachella Valley’s largest and oldest city continues to experience accelerated, balanced growth. The population in Indio is 91,037, Annual Growth Rate is at 1.37%, Average Household Income: $77,965. Even amidst this pandemic year, the City spent $47 million in infrastructure and capital improvements. The City also authorized nearly $2.2 million in Community Development Block Grant funds to assist community organizations in meeting increased needs resulting from COVID-19. Currently in the design stage, College of the Desert officials have plans to expand the downtown Indio campus, including a three-story classroom building with an adjacent plaza and outdoor pavilion. This expansion will more than double the capacity to 8,000 students. Construction is expected to begin by spring 2021. The college also will be developing a Child Development Center over the next few years on property south of its existing campus building.
In real estate investing, location is everything. If you have any questions, please contact Mark Kunce, who was an instructor of the Millionaire Real Estate Investor.