New to Real Estate · Los Angeles, CA · Member since 2020 · 10 posts · 2 votes
Hey Everyone,
I live in the Los Angeles area and I am looking in to STR Market of Big Bear and looks to have a lot of upside. Price of Homes Vs. Potential Profit. I am looking to invest in a 2/3 BD Cabin. Looking for feedback on STR's in the area. Tips in operation of STR's in general would be much appreciated. I would like to go to the property physically only once a month or so.
What are the average costs of Property management on an STR?
Average Vacancy rate in Big Bear Area Air BnB/Vrbos?
Local Laws to be aware of?( Heard of city policy requiring physical presence during check-in)
Lake Oswego, OR · Member since 2020 · 58 posts · 24 votes
5y
@Anton Stoimenov
Hi! I believe it’s not required in Lake Arrowhead. Even just outside of Big Bear Lake, it’s not requirement (for example, Big Bear City).
I would think that if you can find a great crew (cleaning and maintenance), you can self manage.
I found AirDNA data to be really helpful but it was expensive so I only paid for one city, one month.
I paid for Mashvisor data for a year and although the site is terrible to navigate (app on the phone is way better), the data seems to be the same as AirDNA and it gives you access to everywhere in the country. Whichever you choose, definitely spend the money on the data!
Investor · CA · Member since 2019 · 63 posts · 51 votes
5y
Hey @Shane Maddux. I normally invest out of state but I am from SoCal and was starting to look in to STRs in the Big Bear and Lake Arrowhead area. The big thing I took away from my research is that there is more and more coming into STRs in Big Bear. There are growing nuances and costs. For this reason I suggest whatever investments you look at you make sure that it also works as a long term rental and would make sense as a normal buy and hold. STRs profits should be seen as an amazing icing on the cake.
New to Real Estate · Los Angeles, CA · Member since 2020 · 10 posts · 2 votes
5y
@Aseel Yerunkar
Thanks for the response Aseel, I agree you should always have a plan B to shift to. I definitely plan on doing further research on which area (Arrowhead or Big bear) would be an easier area to transition to LTR if need be.
I’m new to investing as well, and had the same thoughts, due to my love for the mountains and wanting to be close to big bear to get my snowboarding fix.
The STR route hasn't penciled out from the properties I've seen thus far. I will say this though...if you can get a duplex or triplex up there, you can incorporate long term for one or two of the units, while leaving one unit as a short term or personal use. I believe this will work out at the right price!
New to Real Estate · Los Angeles, CA · Member since 2020 · 10 posts · 2 votes
5y
@Eric Wong
I think there is still money to be made pending you work the right deal and make your STR unique from others. The major money eater is the requirement for a property manager in that area( if you don't reside relatively close), which from what I've read is roughly 25-30%. I stayed at a property with 4 2 story buildings( roughly 1000sq ft each building) all with units on top and bottom, all booked at $500 that night. So the owner paid her mortgage for the month In one night. That's what really drew my interest to investing in the area.
For sure! Definitely buy at the right price, and it can definitely work. I think if you find a property that is close enough to the mountain, maybe off moonridge, then it should attract enough renters to offset the higher property management costs and longer vacancies like the property you stayed at.
The problem is finding a property like the one you mentioned, as a property like that would be overpriced in this market, as an owner who’s selling would bake in the price of it being fully rented in a “normal” winter season. That sets you up for more risk, as you have to bank on all buildings renting out for 12 nights a year to just pay the mortgage (at the owner’s current loan amount), not factoring the insurance, taxes, cap ex, property manager, etc. You’re also at mercy of the weather, which you can’t control. Fortunately, there’s year round activities to do up there, one of the reasons I like Big Bear so much.
Finding a motivated seller off market, or a distressed property is how I would tackle it.
Rental Property Investor · Hawaii Florida, etc. · Member since 2020 · 19 posts · 17 votes
5y
I've been an Airbnb superhost for several years. One tip that's worked well for me is to use a channel manager like Siteminder to advertise on multiple sites and keep track of it all. I assumed most bookings would come from Airbnb, but Booking.com was a pleasant surprise that drove even more traffic to my rental. Have fun!
Lake Elsinore, CA · Member since 2018 · 235 posts · 300 votes
5y
I have neighbors that bought in Crestline hoping to make it work with a STR. With COVID it was too much of a pain so they recently had to sell. Obviously COVID won't be forever but they had trouble with keeping it clean and maintenance requests. I think that area is going to be all about who you know and ensuring you have an excellent PM, cleaning company, and system for turning over the property/checking guests in before you buy.
Lake Oswego, OR · Member since 2020 · 58 posts · 24 votes
5y
@Shane Maddux
Hi! I bought a cabin on a whim last year in February 2020. I had the worst guys working on the renovation and took like 9 months to complete it. It’s finally rented as of mid November and doing well (so far) but I’m waiting to see how it does long term, especially during the coming slow season.
I look everyday on real estate sites there out of habit and it seems to me that prices have gone up significantly in one year. My cabin which I bought at 360k is now above $500k. I say this to show the craziness. I’m a bit concerned about the sudden and drastic price increase there and also worry that once Covid is over, people will once again have many more options for travel besides what’s nearby within driving distance.
But having said that, it’s all about the numbers. I would ask property management companies what the rental income looked like in 2019, pre covid and assume that as the worst case scenario. Then see if you can still cash flow after 30% property mgmt company (worst case scenario if not self managing) and other fees (mortgage, supplies etc etc) and see if numbers work out still.
Before I bought mine, I paid for AirDNA data on Big Bear to see what my income potential was (before I learned of BP or Mashvisor) and that helped me to see where I COULD land.
In Big Bear Lake, in person check in is mandatory.
I’m still learning as well. [Solicitation Removed by Moderators]
Rental Property Investor · Hawaii Florida, etc. · Member since 2020 · 19 posts · 17 votes
5y
My rentals are in Hawaii, where I live. I do all the property management myself. For me, it hasn't been overly time consuming or difficult. Best "job" I've ever had.
Those are factors to think about as some people think this is a real estate bubble. I do believe as far as places of destination for vacations Big Bear is a good location, as I know many people in Los Angeles that go every year.
How Accurate was the results AirDNA gave you compared to the results youve had so far?
Do you know if this is required in Big Bear city as well? The places I've recently stayed at did not greet me in person
Would love to message you and talk more about this.
Hello, I'm opening escrow on a house in Lake Arrowhead and was wondering if you know whether Lake Arrowhead requires in person check in as well. I would like to try and self manage the AirBnb and see how it goes since I live in Los Angeles. Also how accurate did the paid AirDNA data came out to be? Thanks
Lake Oswego, OR · Member since 2020 · 58 posts · 24 votes
5y
@Anton Stoimenov
Hi! I believe it’s not required in Lake Arrowhead. Even just outside of Big Bear Lake, it’s not requirement (for example, Big Bear City).
I would think that if you can find a great crew (cleaning and maintenance), you can self manage.
I found AirDNA data to be really helpful but it was expensive so I only paid for one city, one month.
I paid for Mashvisor data for a year and although the site is terrible to navigate (app on the phone is way better), the data seems to be the same as AirDNA and it gives you access to everywhere in the country. Whichever you choose, definitely spend the money on the data!
Lake Oswego, OR · Member since 2020 · 58 posts · 24 votes
5y
@Shane Maddux
I found the data from AirDNA and Mashvisor data to be similar and accurate. Both will pull up all the stvr properties listed on Airbnb and the annual monthly revenue per property. You can sort and filter properties as you need. It will give you a good idea. Definitely helped me. Remember thiugh, 2020 was an outlier year due to covid and the numbers reflect the popularity of local travel which might not be the same once covid lifts. 😊
Specialist · Los Angeles, CA · Member since 2018 · 291 posts · 231 votes
5y
@Shane Maddux hey Shane My wife and I were in a similar position a few years ago and decided to start brrrring in Big Bear and now have a few properties up here. My first property up here was number one in all of Big bear city for revenue for 6 or less guests in 2019 and our properties typically revenue 2-3 times what the big management companies up here do. I would love to help you out and maybe even meet when you come up here.
Rental Property Investor · Lake Arrowhead, CA · Member since 2021 · 13 posts · 5 votes
5y
Born and Raised in the Mountains (Specifically Lake Arrowhead) Also own an Insurance company up here in Lake Arrowhead where we specialize in hard to insure homes, and STR's.. I have several STR's in Lake Arrowhead.. I try and stay away from Big Bear. Big Bear has great opportunity for STR but I like to have everything close to me. There is no self check in in Lake Arrowhead. Big Bear for sure gets more foot traffic. Being that it has the name, and the local Ski resorts do a great job advertising to everyone in Southern California.
Lake Arrowhead is a hidden Gem and a more full time residents live here. With that being said Lake Arrowhead can also be tricky on where you buy the house. If you want Lake Access you must be in the "Arrowhead Woods." The Lake is extremely private. Which is great for us locals. If you are looking at STRs in Lake Arrowhead I would suggest something as close to the village as possible. That is where all the restaurants and shops are. All of my STR's are walking distance. Other great thing about Lake Arrowhead is if you want to make it an "LTR." That is no problem. Like i said earlier lots of full time residents up here and the inventory is usually pretty low, making it difficult to find an affordable house to purchase.
As far as property management it is really important to find someone who is a "Local." It is a very tight community up here and everyone knows everyone. I would really make sure that property manager lives locally and knows everyone they need to know (Plumber, electrician, etc). Because if not you will be charged something outrageous being that they know you are down the hill. I do help with managing several properties up here.
I am also looking at STR options to invest in Big Bear. I wanted to learn about your experience managing STR in Big Bear and what are the opportunities and challenges of STR in Big Bear for first time investor. Is it ok, if I send you a connection request to connect and ask some of these questions.