New to Real Estate · Humboldt County · Member since 2020 · 31 posts · 8 votes
Hi all,
Currently looking for a property to purchase in the Pacific Beach area - Budget about $1M -$1.7M - willing to put work into the property as well. Ideally want it to be a short term rental while also being able to go to it when we want to visit San Diego. Anyone who understands this market as well as STR. Looking to get moving on this and will be out there to view properties towards end of November.
Not sure what you know about San Diego city STR rules but there are STR quotas. They partitioned the city into 2 zones: mission beach everything but mission beach.
Mission beach had more applicants than permits and had a lottery. The rest of the city areas did not hit quota. Because mission beach hit quota, PB has been adding a lot of STRs. The STR threshold when applied was likely envisioned to be somewhat evenly distributed. The result is PB is getting more anti STR and want a localized quota.
What will they do if they implement a localized quota. If history is an indication, they will barely take into account that you already have a legal STR. In mission beach I failed to initially get an STR permit in spite of having been an STR since 1999 and being able to prove I had paid the required transit occupancy tax.
I agree with Dan. I live in Orange County and have a friend who owns an vacation home near PB. It's gotten very over saturated with STR's in lots of beach areas of SoCal. Rates have dropped some due to competition. And there is a good chance they could do away with the nightly and weekly rentals, and only require 30-day minimum stays. That happened in Huntington Beach, where you can only have 30-day minimums.
Are you planning on staying in the house several times a year and using it? If not, there are other markets you could consider if you are just looking for the income/cash flow.