Short term rentals in El Dorado County, CA?

Question

Hello everyone,

I am looking to connect with investors in EL Dorado County. I live in Folsom and am very interested in purchasing a short term rental in el dorado county (camino, placerville, pollock pines) and am looking to connect with other investors who are doing this. I have been looking into the laws and it looks like, as long as you're not in the Tahoe basin, a STR is allowed as long as there is no other one within 500 ft. We just stayed in a tiny home airbnb a week ago in Camino and it got me thinking about buying a larger lot with a small house that I can then add a tiny home on to it. Curious as to what others' thoughts and experiences are.

Ben Howard · Answer

@Melissa Roybal While at least for now government regulations don’t seem to be an issue as you stated on the western slope, fire risk and the related insurability through anything other than a Cal Fair plan policy in the three unincorporated areas that you mentioned may be. Further compounded by the new 5/21 Fire Hardening and Defensible Space Advisory Disclosure and Addendum (FHDS) and the associated assignments of which party will ensure compliance. Even if you could find a property in those areas which avoided my first two concerns now, they may become a liability to your p & l long term. If they are, then that could negatively impact your property value.

Melissa Roybal · Answer

@Jo-Ann Lapin thank you.  This is what I keep thinking.  It is such a beautiful area and the current properties listed on airbnb are getting a great rate.  I think I just have to dig into the numbers more.  Thank you for the feedback.  That is helpful and that was my feeling.

Jo-Ann Lapin · Answer

The fires have impacted the insurance  options in a large way . However due to covid and the high cost of housing and remote working it is still very desirable to have space and nature around you . We looked at funding a 30 plus acre property in pollack pines this spring and the rents were for long time renters and very demanded and the ROI even with the insurance issue it cashed flowed well and the fire department had a wonderful fire plan for the owners . Very proactive .

Shelby Willitts · Answer

Yes, I am.  Easy when you live just down the road. ;)

Melissa Roybal · Answer

@Shelby Willitts that is very interesting. Honestly, the only reason being that I visited the area recently and started researching STR opportunities. I didn’t even think about Cameron Park. That is awesome that your condo is doing so well as a long term rental. I’ve been investing out of state and am interested in pivoting and investing locally. Are you self managing?

Melissa Roybal · Answer

Thank you, Ben. That is really helpful information and you bring up some good points. The risk of fires does weigh heavily on my mind when thinking of investing in California, especially after the recent Caldor fire. It still seems like a desirable area with a great deal of potential. I’ll keep researching.

Short term rentals in El Dorado County, CA?

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