Almost every real estate investor knows that Airbnb rentals are a great way of making money in real estate. However, as you can probably guess, the location plays a significant role in determining the return on investment of your property. That is why a real estate investor should aim to find the best places to buy a rental property of this kind.
As the United States real estate market is tremendously big, we will help you in finding the best places to invest in real estate. We will do so by focusing on one specific market- the California real estate market. To be more precise, we will discuss a place in Southern California- the Joshua Tree real estate market, more specifically, Airbnb Joshua Tree.
In order to fully grasp what’s the deal with Airbnb Joshua Tree, we will review several components influencing the Joshua Tree Airbnb investment properties. Let’s start with presenting a quick overview of the Joshua Tree real estate market.
#1 Joshua Tree Real Estate Market
In order to get a better understanding of Joshua Tree real estate investing in general, and Airbnb Joshua Tree in specific, it is a necessity to explore the local housing market. First, let’s mention the fact that the California real estate market is a great location for making money in real estate. The same is valid for Airbnb Joshua Tree.
Joshua Tree is situated in Southern California. Even though this location is not recognized as a city on its own, it has a population of nearly 7,500 people. The community consists of artists, musicians, working families, retirees and business people, such as house investors.
This place in Southern California is famous for its natural sights, which attract many tourists every year. Moreover, there is the popular Joshua Tree music festival held twice annually, which is another reason for the growth of Airbnb Joshua Tree.
When we take a look at this specific California real estate market, we can observe an interesting phenomenon. According to Realtor.com, the prices of Joshua Tree investment properties continually increase.
Meanwhile, the time during which the investments stay on the market decreases. This means only one thing- Joshua Tree real estate investing is the desired business strategy of many house investors. To learn more about Joshua Tree, make sure to read “Buying Property vs. Buying Land in Joshua Tree: Which One Is the Best Investment Strategy?”
However, these are not the only reasons why Joshua Tree is among the best places to invest in real estate. To shed more light on the topic, let’s briefly review what real estate market analysis shows.
#2 Airbnb Joshua Tree – Real Estate Market Analysis
Real estate market analysis helps the real estate investor to explore the housing market of interest in depth. These analyses present different information. Such information is the condition of the market, its state, potential trends and, of course, numerical data.
When it comes to Airbnb Joshua Tree, such analyses reveal various real estate metrics, for instance: Airbnb rental income, Airbnb occupancy rate, Airbnb cash on cash return, Airbnb cap rate, etc.
Examining these values is necessary if you want to find the best places to buy a rental property and list it on Airbnb. Without further ado, here are the real estate metrics regarding Airbnb Joshua Tree.
- Median Property Price: $ 189,000
- Airbnb Rental Income: $ 2,152
- Airbnb Occupancy Rate: 57.95%
- Airbnb Cash on Cash Return: 6.58%
- Airbnb Cap Rate: 6.58%
It is of extreme importance to note that the values above have been acquired through Mashvisor’s rental property calculator. A rental property calculator is a tool which can be very useful in the search for the best places to invest in real estate. The tool quickly and precisely computes all the values you need. Additionally, it gives you detailed information concerning the neighborhood and the investment of choice.
While in the context of short-term rental properties, you might actually prefer to use the Airbnb profit calculator. The Airbnb profit calculator is a type of rental property calculator, specially designed for presenting information about short-term rentals.
The Airbnb profit calculator will eliminate the need for collecting, calculating and analyzing information manually. This is because the tool will provide you with the values of different metrics for various properties to compare.
Airbnb rental income, Airbnb occupancy rate, Airbnb cash on cash return, Airbnb cap rate, and return on investment are such metrics. As you can assume, this is helpful when wondering which the best places to buy a rental property are and trying to find the most profitable Joshua Tree Airbnb investment properties.
After real estate market analysis, you may realize that Joshua Tree is a great opportunity to invest. Interested in what are the other reasons? Make sure to read “Investing in Joshua Tree Real Estate: An Unexpectedly Good Opportunity.”
#3 Airbnb Joshua Tree: Legal Issues
If you consider financing Joshua Tree Airbnb Investment properties, it is vital to review the Airbnb California laws for this specific location. Even though there are no strictly described laws and regulations, some legal issues might occur when buying Joshua Tree investment properties.
The reason behind this is that the community is not willing to turn their territory into a real estate business. People in the area keep under control Airbnb Joshua Tree investment properties. They do not let anyone build a real estate investing empire.
Additionally, as an investor, you need to report your income every quarter. The taxation usually falls around 7% from the income.
Other than that, Joshua Tree real estate investing is a great opportunity for short-term rentals. There are no hotels in the area and it looks like there will not be any time soon. Just keep in mind that the path to making money in real estate and being successful with Airbnb Joshua Tree is to avoid all legal issues and be consistent with the local regulations.
To fully prepare yourself when investing in real estate, make sure to read “5 Legal Real Estate Investing Tips To Know Before Buying A Property.” To learn more about how we will help you make faster and smarter real estate investment decisions, click here.