Why my Joshua Tree Tiny Home failed
HTML-код
- Опубликовано: 28 сен 2024
- Let’s connect and work together:
Book a call with me and the Host Camp team - calendly.com/h...
Sign up to host on Airbnb and get my listing feedback
www.airbnb.com...
Download all my free guides:
My Shopping List: www.hostcamp.c...
Analysis Calculator: www.hostcamp.c...
Automated Messaging Templates: www.hostcamp.c...
7 Rules of Material Participation www.hostcamp.c...
I stayed in this Airbnb once! It was super cozy and decorated so cute! It does seem overkill on the backyard idea for a place that holds two people. 🤷🏼♀️
I didn´t know that. If this house is only for two, all his assumptions should change. You´re right.
We stayed in a place for the first time, and the best part was the hot tub that had clear view of the sky for awesome star viewing. Sad to see you blocked the view of the stars.
Joshua Tree is wildly oversaturated. See the New York Times article (“Are 1,818 Airbnbs Too Many in Joshua Tree?” April 7, 2022).
Agree. Guys like this guy saturate it. No interest in local culture just wants to make a buck. Sell dude. Let locals rent long term!. “Sexy”? Oy vey.
It’s true ! Over 4500 Airbnb in a town of 7000 people. Most pushed out local families and elderly that could only afford to live up here. Hope all the Airbnb here fail
I used to rent trucks in OC off Turo to people that were buying up airbnb properties in 2016. People have been flooding Joshua tree since then. Bubble in that area popped a year ago.
Good…prices need to go down. All these “investors”
can go away. You have ruined far too many places and left NO housing that’s affordable for locals.
@@ladesigner8764 Blackrock ruined things, not small-time investors.
I have to agree as a traveler. I always go with the ones that have more stuff to do at the house if there are a few options to choose from and I will pay a little more for the ones that do.
I manage the "$97,000 tiny house" you're mentioning and we actually did $110,000 in the last year (just checked). We manage 90+ properties in Joshua Tree area through Stays You Like and Cohost Company.
Everything you're saying is spot on! We recently bought 1-bedroom in Yucca Valley that's 100% cash on cash deal doing 100k+ too. Happy to chat and give you insight on how to maximize your revenue!
Wow that's awesome!
Idk how you are generating 100k out of a 1 bed in jtree. Im doing less than half that with a 2 bed on a private yarded half acre with hot tub and no immediate neighbors, with a view of the mountains. Air dna says I'm about where i am supposed to be. I don't understand how you are doubling revenue with such a small space.
Did you renovate this house or had it builit from scratch? Either way, very impressive!
Scam😂
@@Joe-nx7nj yeah, sounds shady as hell to me
Been following you and the biggerpockets community for a while now. It's funny how all this stuff really does snowball and you get deeper in the community with all these different sectors. Thank you for being so transparent about your ups and downs. It's very helpful on this journey as over the last few weeks I've been more and more leaning into beefing up the exterior of my airbnb's to make them something more unique. I started my journey last year just wanting to buy a second home. I'm now at 9 doors, and a plot of land on a mountain side. Everything you guys have talked about I have found myself doing, from STR, MTR, and LTR, section 8 homes for low income families, high end homes near the beach and mountains, rehab, flip, and most recently planning to do a landhack with some kit homes. Honestly this is some of the most valuable content out there and that it is accessible for people that are willing to grind for a while and give it all their effort. PS Definitely get the GOOD FURNITURE! AGREED!
If it's a tiny house and can only fit two people, that backyard is for a group bigger than that. Are you giving yourself room to expand the house to another bedroom? Maybe make a larger living room? maybe even have an ADU next door for groups to share the pool Have the ADU be one large primary suite? That would be pretty cool.
Or maybe even add another tiny home where they can share the backyard
@@justcallmebon2684 I was imagining that what anything he builds would be rented as a group. I for one would not be too interested in sharing the pool with another group if say I am there with just my partner. That's why I was thinking of it more as a package, Where Rob rents them all as one unit.
Yeah that huge yard that accommodates 8+ doesn’t make sense for a tiny home that sleeps 4. Maybe scale back the plan to something a bit more intimate, say dining for 6, a large plunge pool and keep the current hot tub set up. Then it’s great for the smaller grounds that stay there plus a few friends and not welcoming a rage. Especially, of people that may not be as responsible since they are not the renter.
I too would think that the best plan would be to expand the house to accommodate an extra bedroom and maybe an extra bathroom. I agree that I don’t think 2 different groups at the same time would be a good idea
In Joshua Tree--it's most effective from investment standpoint to do 1 bedroom or 4+ bedrooms. Adding ADU won't help too much in this situation. Better to hone in on the couple experience!
What's sad...? is you just DON'T GET IT... AirBnB CHANGED THE ALGORITHM!!!!
I personally called them and called them OUT on their BS. I went from making >$80K in 2021... to $38k 2022 ... me AND the AirBnB rep couldn't even FIND my listingS even when hovering over my house on the map zoomed ALL THE WAY in! "They said they'd look into it"🙄 Dude, it's NOT about your "amenities" AT ALL. It's about AirBnBs SHADY business practices of HIDING long time SuperHost listings and promoting hotels. My house was aa super popular here in L.A. now even my repeat guests msg me and say they can't find my listings on the map
Thanks for the info and openness. I have one 4/3 str in Los angeles. My thoughts are that tiny homes are an experience in and of itself. It's catered to a small 2 person group and the small home is the experience. I would try to create experiences around the property that cater to that couply demographic. I've loved the stargazing bubbles I've seen lately.
Imo, If you are going to spend 100k on a backyard, the money is best used in a home that can also accomodate more inside and that can justify the higher adrs.
Rob! Finally you found your way back to being creative! Can’t wait to see the end result! You will succeed. Great job
It's not about "Joshua Tree", that's a place like any other place. It's about the family experience. Provide something for a family of ~4 to vacation at and also things to do for a reasonable price.
Oh you have no idea because you don’t live here. It is about Joshua tree
You are right on the money with this. I think this is where Airbnb has gone in certain markets where the outdoor space is increasingly important. I think that is especially true in markets where they are going to enjoy nature AND the property, not city life or activities. They want a place where they can kick it with their friends and family and have that nice outdoor environment. I think places where there are other things drawing them there to where they won't be spending a whole lot of time at the house, you just need the beds to be comfortable, etc. Also, there is a lot of competition there now and it's raising the bar it seems.
You hit the real issue with AirBnB at the end. You have to refresh, redesign, and rebuild every 3-5 years. It's a lot of work for a regular owner and even folks like you that have scale.
The money that needs to be continually invested every 3-5 years stop making sense at some point.
On the other hand, hotels have more longevity and don't need as much time, effort, and reinvestment like houses do. And hotels have the ability to be valued by income vs residential market comps, so there is more upside.
Hotels "have more longevity" since they do it right the first time. You can do the same with an AirBnb, but it's alot more upfront capital.
@@DenisLeskovets More or less, yes. But Cash flow should be much greater on a hotel vs AirBnB with relatively the same level of effort. And your ARV will be a substantially greater multiple than with a house.
Came to say something like this. I wonder if we’re valuing improvements incorrectly, when they have a lifetime of only a few years. If I turn a den into a bathroom in a LTR and net an extra $20k in rent in perpetuity, it’s different than if I put in a hot tub and outdoor furniture that might have a 5-7 year lifespan or even less (when used in a STR). Videos like this get me tempted, but it also makes me nervous that we’ll convince ourselves to keep pouring money into a questionable investment.
It is so cool you are helping with your parents retirement! What about trying a cowboy pool first? Also what if take the top off your pergola so people can look at the stars?
cowboy pool should be the way to go first
I certainly hope they want to live there because otherwise, retiring in a hot arid secluded area isn’t as nice as you might think. I’m not trying to put down what he is doing because I have no idea what happens in his life. If they wanted this, that’s great. If not, then he needs to give them something better. If you’re rich and your parents aren’t bad people, you don’t want to send them out there.
I live in California, anywhere away from the coast south of Sacramento is basically a giant frying pan. And the desert just turns the temperature to high.
Always loved casa Conejo, so good luck with the remodel. Just wondering how mich homework you've done around the pickleball courts. Been hearing some rumblings that the fad could be dying. At the very least, the court should probably dual purpose. Just a thought.
This was so helpful! Been debating pool no pool if so how big etc etc in our beach house, and I really liked hearing your perspective!
Location is definitely important! Depends on what people want to do when they visit whatever area they are going to! I always wanted to do my own earthship and couple others near but far enough away lol
$100K for that backyard? Impossible. Maybe the pool guy is just talking about the pool.
Could be. But I didn't mention the dimensions. We're looking at a 10x15 pool. He back-of-the-napkin mathed it out for me around $100k. But once I have an updated bid, I'll let you know. Well, I'll make an update about it on the channel lol.
My first though off the top of my head was $175K. But beyond the pool the rest of the hardscaping is fairly basic.
American construction pricing is absolutely wild compared to the uk
Husband is a pool
Contractor. That pool is probably 100,000 without the extras on the other amenities around it / plus all
the extra concrete decking. House is for two people. Scale it down. Smaller pool, less deck can still. be amazing. Give part of the hot tub open sky star view and part shaded. Love the fiver drawing. Pay another 50.00 and ask them to scale it back in size and accentuate some key features.
@@chrismartell6135Construction and housing costs in England are often just as high or higher. Come in man, be honest. This is just California
Hey Rob, thanks for sharing and updating your Josue Tree status, I too have been buying/creating properties out here in the past 3 years, which grew into the "Desert Spirit" property management company. Everything you're saying is true, but there is also more to it than just getting a luxury new construction or a fancy luxury/modern backyard, (since quite a few of them here are not doing as well as the others). We also have a few old properties that are constantly crossing the six figures and increasing in revenue yearly. The high desert STR market is an art in itself! As you probably already know. I would be happy to share some of my insights from my experience in this Market.
best wishes 😊
Let’s chat! Shoot me a DM on IG. Thanks for the comment.
Hey Rob! You’re the one that inspired me to build in Joshua Tree. You nailed it, premium outdoor amenities is the name of the game. My new construction 2/2 is pacing for $135K. This is without a pool/hot tub, but we still have an exceptional outdoor space. But the pool/hot tub are coming soon and I expect my revenue to rise to $180-$210K.
P.S. I see a lot of the high end homes do gravel and fences. Not a fan. Keep the landscape natural if you can, people are there to enjoy the natural scenery of JT. Look up The Hightail House by Homestead Modern. They nailed their pool / fire pit and do $200K+ every year with their 2/2.
Dude this is wild! Congrats man. Shoot me a message on IG. I'd love to chat.
We are also the JT market. It started going really well at first and then it slowly just went down and got really discouraging. we have 3 bed 1 bath with a fenced back yard and big tree. We have long term tenants there now just to cover expenses but we might sell cause we are not sure what to do to turn it around. I'm really looking forward to how this will work out for you we might follow!!! We got in to JT cause of you :)
I'll keep y'all posted. I always do.
I bet me and you could team up to do some serious numbers. I’m on the art and design side of this whole thing (even tho I’m also an entrepreneur) but seeing those renders made something click for me. I have felt for a while that outdoor spaces were severely underestimated and now I think we’re gonna see a new wave of vacation style
Landscaping, exterior landscape lighting (this is a big one), firepit, dining area, pool are key in that area. I'm seeing the top 15% still crushing it - but people are upping the game like crazy. Looking good on what you are doing for the future!!!
Short term rental properties in the high desert 👎 are displacing shelters for locals.
The goats
Happening everywhere. FYI Bush and Obama were both good for housing Biden and Trump killed housing for working class. The data The first two set up is still there.
Most towns and cities are violating Fair Housing Act laws. The first two started citing cities the second two have shut that down. Yes Biden is on the shut down fair housing enforcement train. Faxt.
I think there's got to be a way to do both. I have no problem with small-time landlords owning one or several properties; I do have a problem with large corporate thugs coming in and buying up everything a monopolizing living space. I feel regulation is key.
@@YourCapyFrenBigly_3DPipes1999 OH God you must be happy because there isn't an effect on housing by "big evil corporations" its all a lie. Do a basic internet search. Single family homes bought by billion dollar corporations is less than one percent of the single family home sales and about 1/20of one percent of the housing stock.
Agree. He needs to sell to a local. Investors like him, obsessed with money just leaves me cold. Invest where you want to live. Locals are exhausted by capitalists like you.
I just got back from a stay in Joshua Tree (in the summer, i know!) I was there for the desert vibes. I wanted something unique, and i wanted to experience the desert in the back yard.
This is amazing Rob. Hope to see the results of your investment in this house!
Love the transparency! That backyard is going to be stunning
Seems the yard and pool are too big. How many people can sleep?
Depends how hard they party. Surely one can pass out in the spa, with at least 2 or 3 comatose on the loungers by the pool. At least! Ditto for outdoor bathroom facilities.
Math ain’t mathing. If you do 100k in rev from 40k, your delta isn’t 60k when you factor in turnovers, electrical, increased insurance, etc. Are you paying for this reno in cash? If not, tack on debt service. I don’t think you stand to make 60k additional dollars year 1. I’d imagine half that, at best. Still a good investment but think you should be more forthright with your analysis. Your back of napkin math is a pipe dream
San bernadino has a limit on 2 str permits per person. How are you getting around the county to have 5 new properties? all through partnerships?
I'm no expert, but you can see how both the luxury style upgrade and the bigger backyard space would result in higher revenue. If there is a company retreat, or a large group weekend away, or even a celebrity party, that newer backyard idea is just perfect for large groups of people hanging out. And companies or celebrities or large groups are much more likely to spend a lot of money on a few days at this property versus a small little 2-4 guest house. I love these kinds of projects!
I can tell you what will really happen, you will lose your permit.
You are right, this will appeal to large groups or parties to split the increased cost. This means the residential trashcans will be overstuffed from their party meaning "guests" will resort to putting their excessive trash bags next to the bin, which is a code enforcement violation. Your property manager will take the trashcans out when it is convenient for them meaning they will do it after cleaning on Sunday, but our bins get picked up on Monday meaning our winds will knock over your overstuffed trash over with no one responsible to pick it up. A huge burden on the neighborhood and yet another code enforcement violation.,
Additionally, this means multiple cars on the property, if there are more than two, that's another code enforcement violation. A tiny driveway and multiple cars means cars parked on the street, street parking is prohibited and another code enforcement violation. This means too much noise and light, again, another code enforcement violation.
You are probably hoping this would be passive income, but as someone who happily lives in the neighborhood and is distressed at how many people came here to exploit it for money, I promise I'm going to do my part to hold every single one of these rentals accountable. After you lose your permit, good luck trying to sell or rent long term as you've invested astronomically higher than anyone in the area can afford. Everyone who lives here laughs when these failed Airbnb attempts go back on market for 500k+. Truly, what were you thinking....
Ya, so you get a fancy backyard, so do all the other strs in the area. Then revenue goes down for all and styles change in 5 years, you spend more money and the cycle begins again.
That's what this business is all about though. Adapting. It's not for the faint of heart.
masters class being taught here. lots in-between the line info. Thank you
Hi Rob, let me know if you need any help with any plans. I am an LA architect and would love to work with you on any of your ground up builds.
Hi Rob,I am a real estate agent and have a neighbor that is interested in purchasing a home as an investment property. Besides looking up properties that are available to purchase, any other tips? Looking forward in speaking soon. Thanks for taking the time in reading this message and writing back.
Build out the backyard and it would be even better if you added a second house on the property.
You got a great deal on that backyard design/render for 80 bucks. I don't think you're going to get that built for $100k though, not at all...if you're able to legitimately find someone who is willing to sign a contract with you for that price (where you can hold them to it), do it ASAP. Generally though, the rule of thumb when it comes to "pool guys" is, you'll wind up paying like 2x what they initially quote you at.
I’ve never once on any podcast heard about how big of an impact an escrow analysis can have on an investment property. Would love to be able to figure out a way to learn how to plan for one.
I would do the same but make it smaller to save money. Probably cut one side off and have the pool close to the wall with design on the wall. Less walls,rocks,pavement etc.
How are you getting a permit for swimming pool in desert? Are your houses on central water or water well?
Looks like it's city water.
That is one of the many things I love about us Mexican’s, we will always take care of our parents and give back❤
what a bout 29 plams, yucca valley , landers , for new construction ?
I've seen some successful properties in all those locations.
been following you for a while love all the great info and small info you give! great to listen to gj!!! cant wait to see whats next
We are building a cabin. Would you focus on getting all of the amenities and getting the place perfect before renting it out? Or would you rent it out as soon as you can and then work on the amenities while you can?
Rent as soon as you can.
Like this guy it'll show you you're spending to much on the finishes in the house. Sounds like the yard is important.
A few areas like this I'm considering moving to so I can crank out desert contemporary houses. Resort or community.
Think of the first apartment you had. You want the space to sleep. The location, pool and clubhouse were what you wanted. Size of bedroom didn't matter.
Another consideration, if you ever sell the place in the future, it will be worth 60-100K more due to the backyard improvement
Trust me, it won’t change market value that much, and he’d only get more from an investor if he still had good rental numbers to show to an investor.
House value is based almost entirely on the value of land and sqft of the house. At the end of the day, most people would rather spend more on land or a bigger house than a tiny house with a giant backyard. There’s a reason no one buys tiny houses with amenities over larger traditional ones if they have the choice.
Why not expand the house? Or sell the property? Deposit that money in CD's etc. for your parents.
Whats the story with Tony and his? Not seen anything about it lately
Is it also when people say they want seclusion at Joshua Tree they want a tiny house further away from the light pollution of the city so they can get a panoramic view of the night sky filled with many visible stars. Maybe reduce the lights in the backyard and put a telescope in the backyard. When I go camping in the summer, I want to enjoy the night sky.
Could you drop the “Fiver designers” info?
I'm not sure you can call that tiny house a failure with the ROI you quoted.
Yeah. I'm a little hard on myself. But I hate revenue dips.
Now run the numbers with interest rates at 7%, property management and cleaning fees.
Can’t wait to see it done and see the results
Thank you! I'm pretty excited about it as well. And I'm anxious to figure out the increase in bookings as well.
What was that property design software you are using?
My home was rental arbitrage Airbnb, the guy didn't want to renew the lease so 1 more off the market. I'm on Capilla Drive right around the corner from you.
You are a wonderful son. Bless you❤❤❤
I think you’re right about design. Color theory comes into play when advertising your space, needs to be attention grabbing.
Adding a pool house or leaving space for one later might be the move
You are a class act, Rob. Love your heart for your parents. I bet they are wonderful and so very proud of you.
Thanks for all the amazing content! 🤩
Thank you. I do everything for them.
I agree an updated backyard experience is a must but your design is overkill for the smallness of the house.
I really think people are leaning toward the smaller more intimate floor plan when renting. It only make sense. The big places you just in your own world. Who really like being lonely 😞?
First and sick ass tiny house. love the info.
Do you mind sharing who you used on fiverr?
That is a national park there is room for everyone really. A pool makes sense it's hot there!
Super excited for you. Godspeed!
The house was not designed for its context. Where are the windows framing the views? Where are the doors that spill out onto the outdoor living? It was laid out like a suburban tiny home in a neighborhood, it doesn’t fit where it was built. Tiny homes need well-conceived outdoor living to live bigger than they actually are. So many misses on this “design.”
lol I keep my honeypots to myself .
How many contractors are out the?
Im a spec builder and need to know how the subs are?
$SF construction cost?
At least 350/SqFt
@@issafugazi6926 sorry I missed your comment. Is that the house prices or is that what you've built for????
I love to have a talk. I may come out to check out the area. Looks like land is available.
It’s because the house is tall and not horizontal + no pool + backyard doesn’t have a layout and foliage
People that keep asking why are you doing this and suggesting you buy another house? They are looking at this as if this is an investment that you’re selling as a home. As a residential home. You’re using this as a business. It literally is your product and to make money on your product? You have to invest money into your product. The money you make back is not what you’re gonna make back when you sell it. You make the money back in your returns on the income you’ve earned every year. Sounds like a business plan. That is definitely going to work. Where the house be overbuilt for the area what it’s worth as a residential home, yes but would you have made all your money 3,4,5,6,8 times over? Yes!
Seems like you are over investing for the backyard for such a small place. Like a pool is appropriate for a large house where you can comfortably have lots of people, but not sure about one for two people. I think people are more likely to splurge on bigger homes because they can treat their family/friends or share costs with a group.
People with wealth will also choose the bigger houses just for privacy and being in safer neighborhoods even if it’s just a couple.
Should put something else back there that is cheaper but a unique Instagram type experience.
Who is the design artist from Fiverr?
For what its worth, I personally wouldn't rent your property because of the yard, unless is was cheap. Its not complicated, the most amenities for the smallest total amount. If I splurge, its going to be for an overall compelling experience.
Hmm. I don't know. It seems like you proved my point on your last statement haha. But regardless, if you wouldn't book, that's totally fine. It just means you're not my target market.
@@Robuilt My comment was to reinforce your point. I agree with it. Besides, I'm not saying anything you don't already know. Sometimes I rent for necessity and go for value, sometime I rent for experience and I again, go for value (but its a different kind of value).
Ummmm... all of the numbers you talked about, large and small, are great returns. Where ever was the failure?
New to your channel! How are you funding new builds? *I am guessing you have cash but would love a referral.
The vacation rental should be a much better experience than being at your home. Otherwise, why would you go there?
loved that idea for the backyard and yes to re-invest
Go smaller on the backyard experience and increase your sq ft
He acts like an expert but man you don't understand this market like those of us who live in it. You can make a "dope" STR without spending 100K on the backyard. Just shows how little you understand the place you're investing in.
This week on "Why everything we've been selling you over the last 4 years was bullshit"
7:55 "This is kind of like my tiny house now."
Um, wut? I thought you were showing photos of your ACTUAL tiny house. Why are you saying that it's "kind of like" your house??
100k on that backyard? That is freaking cheap. Only the pool build would be that price.
How did you take the leap with tiny homes? I'm interested in a tiny home treehouse for my area, but it's an unsaturated market that's hard to find any comps to determine what we could charge for it.
Stop saying tiny house would be your first step. My experience is you get treated differently and not in a positive way on pricing.
@@sparksmcgee6641 Thanks for the reply. We plan to move into a home as our new primary and build on it, but there's not any comps in our area for airbnb tinyhomes/treehouses. Which could be a good thing I guess.
I think u can do as mush with less. l recommend you do some landscaping with native vegetation & throw 4 nice chairs outside around a fire pit, placed where u have the best views
Plus, include an indoor high powered telescope for stargazing, knock 50 bucks off the weekday rates and watch 'em book your space.
My theory is do what others aren't, for a quality cost-effective experience, and you will corner the market.
Remember why you built it in the first place. You really want to saddle your parents with high-cost maintenance in their retirement years? It kind of defeats the purpose.
Man I must be paying to much for a car lol
Same payment as your house
A great rendering however it seems rather too modern and sterile. I don’t get any good experience except from my eyes that see concrete in rocks and Hotell like presentation. The other comparables that you were showing had character. I would suggest having a more personal experience.
I thought you sold the Joshua tree home?
That was his other house, Casa Mariposa. He kept the tiny house.
Let's be REALLY transparent - Joshua Tree is already ruined. I've been going there for 15 years. In the early days it was an escape from LA, the houses were humble, dumpy ranch homes, the "outdoor space" was maybe a tin shed with an old claw foot bathtub you filled with a hose. You went there to decompress, hike JT, stargaze, play your guitar without the neighbors complaining. Now it's overrun with people happy to spend a crap ton of money to stay in a "luxury" Airbnb -tech bros/douche bags/wealthy families /bridal parties, etc who don't give a shit about preservation or JTNF. You'll have to keep upping the amenities if you want to play that game. Your goal of helping your folks is admirable but it's a shame that you feel you need to add to glut of over-developed builds already out there to do it.
Could it be the economy too
nah….it’s the Airbnb bust. Too many resent out of towners like this guy. Stay at 29 Palms Inn or Joshua Tree Motel. Support local businesses, not a rich capitalist.
I don't understand how this is a "free house" ?
Too many Airbnb in Joshua Tree. If you go on the app and just put in California as your destination. About 80% is just Joshua tree
Gotta stand out.
I stayed at the Joshua Tree tiny house and wasn't impressed.
Hard to compete with FUNDS.
I can't believe your teaming up with Shelby Church, the number one Airbnb hater lol
Your not making 70k a year profit take out the taxes and then tell me the number it's more like 48k
Joshua Tree is a hugely over saturated market and locals can’t afford to buy homes anymore.
100k for that backyard drawing seems extremely cheap.
Cool! 😎👍
😂 I know exactly where this house is and thank god you didn’t succeed. Airbnb ruined Joshua tree because people that aren’t locals like yourself moved here looking to turn a profit on our tiny town. Hopefully any others fail too. We don’t want Airbnb here !
Sickkkkk