Last updated on June 21st, 2023
airbnb property investment Big Bear Lake
Looking to have a property investment within the famous San Bernardino National Forest? I’ve got three words: Big Bear Lake! This city will not only soothe your eyes with its beautiful nature views but will also help you earn a passive income. While many travelers consider this city on their travel bucket list, it’s most certainly a thrill for property investors too.
To begin with, the major costs and potential revenue should be considered before deciding to purchase a property. Another excellent option is to do rental arbitrage since it’s fairly popular and does not require you to purchase a property as a start.
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“Big Bear Lake draws vacationers from five densely populated areas – Los Angeles, Orange County, San Diego, Palm Springs, and Las Vegas. Proximity to these highly populated areas creates a steady flow of vacationers.”
Aside from looking at a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment.
This includes the best website recommendations for both city center and lakefront property investments in Big Bear Lake, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!
Pros of buying an Airbnb Property in Big Bear Lake
Looking for exotics landscapes and a life full of adventures in the heart of the San Bernardino Mountains? Then Big Bear Lake is the perfect place to invest in! This idyllic city is ideal for the outdoor enthusiast as they can get a first-hand experience of exciting activities such as hiking, skiing, fishing and more. However, there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the major reasons why you should consider buying a property for Airbnb in Big Bear Lake:
1. Popular tourist destination
Big Bear Lake is a renowned vocational destination that draws travelers that are looking to have a first-hand experience of the majestic San Bernardino National Forest. In fact, the city attracts around 756K tourists annually! This surely sounds attractive to investors who want to cater to tourist accommodations.
2. Low crime rate
Safety is a major factor when it comes to determining where to invest and the good news is that, indeed, Big Bear Lake is a safe place as its crime rate is 17% lower than other cities in California and 9% lowered compared to the national average!
3. Property taxes
Another great aspect of Big Bear Lake is that the property taxes are lower compared to other popular cities located in surrounding counties. Being located in San Bernardino county, Big Bear Lake’s average property tax rate is 0.90%, which is slightly lower than the national average.
Cons of purchasing a property in Big Bear Lake
Now that we know the pros of investing in Big Bear Lake, let’s take a quick look at some of the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!
1. Beware of the wildlife
Did you know that Big Bear Lake was named after the large number of grizzly bears that roamed the area at some point? They are beautiful animals but encountering one can be scary. Other types of wildlife living in the surrounding areas are squirrels, rabbits, coyotes, mountain lions and rattlesnakes. So with that in mind, people in Big Bear Lake city should ways be aware of their surroundings and learn some safety protocols just in case.
2. The real estate market
As a fairly popular tourist destination, while the renters market looks good thanks to this, you will also need to have in mind that the real estate market can be higher than in other cities. In Big Bear Lake, the average property price is $660k with a 1-year value change of 3.1%.
3. High cost of living
The cost of living is also something investors should consider when looking for an appropriate location to set up an Airbnb listing. This aspect is another downside in Big Bear Lake as it can be quite expensive since this is 29% higher than the national average based on Areavibes data.
Best Neighborhoods for Airbnb in Big Bear Lake
Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Big Bear Lake. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods:
airbnb property investment Big Bear Lake
1. Big Bear Lake East
- Annual Revenue: $28,168
- Occupancy Rate: 61%
- Average Daily Rate: $120
2. Moonridge
- Annual Revenue: $40,325
- Occupancy Rate: 51%
- Average Daily Rate: $204
3. Boulder Bay
- Annual Revenue: $15,952
- Occupancy Rate: 40%
- Average Daily Rate: $96
Is Property Investment Profitable in Big Bear Lake?
Using an Airbnb profit estimator, it was discovered that a 2-bedroom apartment in Big Bear Lake can generate an annual revenue of $41,888 with a steady occupancy rate of 40% and a nightly rate of $246.
airbnb property investment Big Bear Lake
Cheap Homes for Sale in Big Bear Lake
Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage.
At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Here are some of the profitable properties in Big Bear Lake along with the calculated gross rental yield, cash-on-cash return, and annual revenue:
125 E Mojave, Big Bear City, CA 92314
1. Studio-type Property for Sale Big Bear City Center
- Near Community Market
- Asking Price: $68,000
| GROSS RENTAL YIELD | 24.69% |
| ANNUAL REVENUE | $16,786 |
| CASH ON CASH RETURN | 48.29% |
547 Alden Rd, Big Bear Lake, CA 92315
2. 1-Bedroom Type Lakefront Property for Sale Big Bear Lake
- 0.5 miles to Big Bear Middle School
- Asking Price: $115,000
| GROSS RENTAL YIELD | 18.34% |
| ANNUAL REVENUE | $21,095 |
| CASH ON CASH RETURN | 29.26% |
475 Thrush #10, Big Bear Lake, CA 92315
3. 2-Bedroom Type Lakefront Property for Sale Big Bear Lake
- Half a mile from Snow Summit and less than a half mile from Meadow Park and the lake.
- Asking Price: $95,000
| GROSS RENTAL YIELD | 26.68% |
| ANNUAL REVENUE | $25,347 |
| CASH ON CASH RETURN | 54.28% |
41150 Lahontan Unit C-1, Big Bear Lake, CA 92315
4. 3-Bedroom Type Lakefront Property for Sale Big Bear Lake
- 0.2 miles to Big Bear Middle School
- Asking Price: $149,900
| GROSS RENTAL YIELD | 24.99% |
| ANNUAL REVENUE | $37,454 |
| CASH ON CASH RETURN | 49.19% |
1099 Pan Springs Ln, Big Bear City, CA 92314
5. 4-Bedroom Type Property for Sale Big Bear City Center
- Near Big Bear High School
- Asking Price: $349,000
| GROSS RENTAL YIELD | 18.02% |
| ANNUAL REVENUE | $62,880 |
| CASH ON CASH RETURN | 28.28% |
Conclusion
Conducting market research in Big Bear Lake is helpful for accuracy and knowing the potential profitability. With the number of visitors that it attracts annually with its recreational activities and peaceful atmosphere, Big Bear Lake can certainly generate a nice cash flow for property investors. However, it’s not recommended for property investors with a limited budget as the real estate market and cost of living are higher than the national average. There are certainly other cities in California that one can discover!
As long as the potential revenue is calculated using an Airbnb profit calculator, it’s definitely worth the time & effort to invest and speak with a short-term rental expert to make the wisest decision for property investment that you won’t regret.
