Looking for Vacation rental in San Diego area.

4 Replies

I will be in San Diego May 18-22. I have friends in the area, and I have been researching the short term rental market there. I am interested in looking at short term rental for purchase in the North Park, South Park, Balboa Park area, while I am in town. If anyone has good suggestion for realtor to reach out to, please let me know.

I would be leery of purchasing in the city of San Diego relying on short term rental because of the San Diego environment relating to STR. Annually the are regulations proposed to restrict San Diego STRs.

Therefore any property purchase should be able to generate a profit as an LTR otherwise the risk seems too high.  

Good luck

Hi John,

The city of San Diego has been trying figure out a way to come up with a plan that will work for both parties for a while now. Being a tourist destination hotel taxes are a huge source of income for the city but at the same time it does not seem as though the city is completely against the idea either. Here is a story about the most recent attempt by the city to come up with a plan (spoiler: they didn’t come up with a plan, but this should catch you up with what is going on!)

http://www.sandiegouniontribune.com/business/tourism/sd-fi-airbnb-council-20171212-story.html

You would have to register the property as Dan mentioned but there still could be a way to make everything work. A lot of people are doing it so it must be working for someone! Here is the link to the local registration and tax implications...

https://www.sandiego.gov/treasurer/taxesfees/tot

I would be happy to send you some local listing of properties that could work for you and then we can make a plan to take a look when your down in May!

Hope this helps!

We have 2 STR units that have provided outstanding ROI. However an investment in San Diego city that relies on STR is a risky investment. Proposed regulations have run the gamut to not much impact to virtually eliminating them for non-owner occuppied.

This implies that any investment in San Diego RE should be financially viable as an LTR.  

Good luck. 

Hey @John Parshall

As others have mentioned, the current legislative landscape leaves the outlook on the viability of STR investments in SD a bit up in the air.

However, as @Dan Heuschele stated, ensuring that the property is viable as a long-term rental will drastically reduce the risk associated with that uncertainty. 

If you were thinking about buying a vacation rental in a more coastal neighborhood like Mission Beach or La Jolla (where the cost essentially necessitates the escalated income of an STR), I would likely advise you to wait to see where things go legislatively.

However, the neighborhood you mentioned are not necessarily in that same category. North Park, South Park, and the other areas surrounding Balboa have properties that will do well for you as a STR, but are much more reasonably sustained if you were forced to transition to longer-term tenants.

Let’s get together while you’re in town to further discuss the current market dynamics and take a look at a few properties that will work with your goals/level of risk aversion.

 I’ll shoot you a PM now to coordinate. 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.