Are you looking to invest in a vacation rental market with a high ROI? Joshua Tree, CA has proven to be just that. Joshua Tree vacation rentals have become increasingly popular over the last few years. The tourist attractions such as the Joshua Tree National Park and Joshua Tree music festival have attracted many tourists, driving demand for short-term rentals. As a matter of fact, Joshua Tree has already been targeted by many real estate investors seeking income properties.
What is it about the Joshua Tree real estate market that is attracting so many real estate investors? Is Joshua Tree the best place to buy a vacation rental property right now?
Here’s a Background on Joshua Tree, CA First
Joshua Tree is not a city; it is a census-designated place (CDP) on State Route 62 in San Bernardino County, California. According to the most recent census data in 2010, Joshua Tree’s population stands at 7,500 people.
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Tourism
Although Joshua Tree is a small area, it attracts over 2 million tourists a year. Certainly, the high influx of tourism in Joshua Tree has created more demand for lodging and camping rentals. This is just one reason why many real estate investors are investing in Joshua Tree vacation rentals.
The community of Joshua Tree residents is comprised of artists, musicians, business people, telecommuters, working families, and seniors. The town is renowned for its taste in art, and for this reason, many tourists come to Joshua Tree. In fact, tourism has been a leading industry in Joshua Tree. In 2015, the tourist populace supported over 1,300 local jobs while generating economic benefits of over $128 million. Certainly, Joshua Tree’s economy enjoys vitality, attracting more businesses and business people looking to benefit from the growing vacation rental industry here. So, buying Joshua Tree houses for sale and renting them out as Airbnb vacation homes makes for a great investment opportunity- one that will bring about high returns.
Related: What’s the Deal with Airbnb Joshua Tree?
Why You Should Invest in Joshua Tree Vacation Rentals
Tourism is not the only reason to invest in Joshua Tree. The affordability of real estate in the Joshua Tree housing market has swayed many to invest here. California houses many expensive properties and finding an affordable city has now become harder. Luckily, Joshua Tree remains to be a destination for many real estate investors looking for affordable properties. The median property price in Joshua Tree is $315,794 according to Mashvisor’s data. Just over the past year, median property values have increased by 22%, while the national average increased by about 7% from last year. Clearly, Joshua Tree vacation rentals are a hot commodity today.
Given the significant real estate appreciation and demand for short-term rentals, Joshua Tree vacation rentals are opportunities that real estate investors are tapping into. To give you a more in-depth analysis of how the Joshua Tree real estate market is doing, we have compiled data from Mashvisor’s investment property calculator. Let’s take a look:
- Median Property Price: $315,794
- Traditional Rental Income: $990
- Airbnb Rental Income: $2,993
- Traditional CoC Return: 1%
- Airbnb CoC Return: 7.2%
- Airbnb Occupancy Rate: 56.4%
According to Mashvisor’s investment property calculator, the rental income earned from renting via Airbnb is more than double that of traditional rental properties. Airbnb cash on cash return is also much higher than the traditional CoC rate. Keep in mind that the cash on cash return is used to evaluate the cash flow from income properties. It’s the ratio of the annual before-tax cash flow to the total amount of cash invested. Presented with the two metrics and their comparisons to traditional renting, we can conclude that Joshua Tree is surely a hot spot for Airbnb investing. But what about Airbnb regulations in Joshua Tree?
Related: Buying Property vs. Buying Land in Joshua Tree: Which One Is the Best Investment Strategy?
Airbnb Regulations in Joshua Tree
For many areas, renting via Airbnb has become more difficult with the enforcement of regulations against it. Many areas have even banned the use of Airbnb all together.
Is Airbnb legal in Joshua Tree? Luckily, Airbnb Joshua Tree is not one of these locations. The state of California has not adopted any major regulations against Airbnb rental properties to date; no laws, in particular, have been enforced against the use of Airbnb Joshua Tree. Experts believe that, despite the growing number of Airbnb units in the town, future regulations restricting its use are unlikely. This is because Airbnb guests have financially benefitted the local economy and communities surrounding it. However, it is still crucial that you contact the local city council and inquire about the latest regulations governing the use of Airbnb.
How to Find Joshua Tree Vacation Rentals
Now that you know that owning an Airbnb in Joshua Tree is one of the best investment strategies, how do you find one? The key to succeeding with Joshua Tree vacation rentals is to find Airbnb investment properties that have high cash on cash return. The best way to do this is with Mashvisor’s property finder tool. Here are just a few to further give you an idea of properties you can find with this tool and their return on investment:
- Airbnb Joshua Tree Rental Property #1:
Listing Price: $95,000
Airbnb Cash on Cash Return: 14.0% - Airbnb Joshua Tree Rental Property #2:
Listing Price: $98,000
Airbnb Cash on Cash Return: 13.0% - Airbnb Joshua Tree Rental Property #3:
Listing Price: $139,900
Airbnb Cash on Cash Return: 12.4%
The next step would be to analyze the investment property of your choice with Mashvisor’s Airbnb profit calculator. Get started now.
The Bottom Line
Surely, investing in Joshua Tree vacation rentals makes for a very viable option for real estate investors. With over 2 million tourists a year, investing in Airbnb vacation rentals has burgeoned. As a matter of fact, over the past couple of years, the number of Airbnb units has tripled as demand has increased. We recommend that you invest in Joshua Tree vacation rentals before property prices rise too high. In order to better manage the purchase of your investment property, we recommend that you resort to the tools that Mashvisor has made available.
To learn more about Mashvisor and the services we offer, click here.