Palm Springs Airbnb | ROI from Festival Weekends

Palm Springs is a popular vacation destination that attracts thousands of visitors every year, especially during the Coachella and Stagecoach festivals. By owning a short-term rental home in Palm Springs during these events, you can make a significant amount of money. In this blog, we'll show you how to analyze the profitability of owning a short-term rental property in Palm Springs during the Coachella and Stagecoach festivals using tools like BiggerPockets.com and the Airbnb calculator.

Let's take a closer look at a potential investment property. We'll assume that you're interested in a $1,200,000 property, and you're planning to rent it out during the Coachella and Stagecoach festivals. Using the Airbnb calculator, we can estimate the potential rental income during these events.

According to the Airbnb calculator, the average nightly rate for vacation rentals in Palm Springs during the Coachella festival is $1,200, and during Stagecoach, it's $900. Assuming a 90% occupancy rate during these events, the estimated gross rental income for a three-night stay during Coachella would be $3,240, and during Stagecoach, it would be $2,430.

Now, let's analyze the profitability of owning this property using the BiggerPockets rental property calculator. Assuming a purchase price of $1,200,000, a 20% down payment, and a 30-year mortgage with a 4% interest rate, the monthly mortgage payment would be approximately $4,566. Other expenses, including property taxes, insurance, and maintenance costs, would add up to approximately $2,500 per month.

Using the rental property calculator, we can estimate that the annual cash flow from renting out the property during the Coachella and Stagecoach festivals would be $56,482, with a 9.4% ROI. This means that your initial investment of $240,000 (20% down payment) would generate a return of $56,482 annually.

Owning a short-term rental property in Palm Springs during the Coachella and Stagecoach festivals can be a highly profitable investment opportunity. By using tools like BiggerPockets and the Airbnb calculator, you can analyze the profitability of potential investment properties and make an informed decision about whether to invest. With high demand for accommodation during these events, you can charge a premium for renting your property and make a significant profit in just a few days.

However, it's important to note that there are also risks associated with real estate investing, and it's crucial to consult with professionals before making any investment decisions. Before making any investment decisions, it's important to consult with your trusted realtor, CPA, and mortgage loan officer. While online tools like BiggerPockets and the Airbnb calculator can provide valuable insights, they are only a starting point. A real estate agent can provide guidance on local market conditions, property values, and other important factors that can impact the profitability of your investment. A CPA can advise you on tax implications, and a mortgage loan officer can help you understand your financing options and determine how much you can afford to borrow. Ultimately, it's important to do your due diligence and seek expert advice before making any real estate investment decisions.