Areas for vacation rentals / AirBNB

13 Replies

I sold a rental property and have 30 days to find a 1031 exchange replacement property. Our initial plan was to purchase in Palm Springs, but we opened our search to Joshua Tree for potentially higher income/monthly cash flow. 

For investors in the vacation rental market/AirBNB, what other cities or markets should I look into for high cash flow properties? Open to Ojai, Santa Barbara, and even the Hamptons on the east coast.

Originally posted by @Barry Wong :

I sold a rental property and have 30 days to find a 1031 exchange replacement property. Our initial plan was to purchase in Palm Springs, but we opened our search to Joshua Tree for potentially higher income/monthly cash flow. 

For investors in the vacation rental market/AirBNB, what other cities or markets should I look into for high cash flow properties? Open to Ojai, Santa Barbara, and even the Hamptons on the east coast

There are a few really interesting permitted STRs currently on the market in Santa Barbara. Nicely done rentals here can rent at 90%+ occupancy year round and cash flow phenomenally. Of course, they don’t come cheap. Let me know if you’d like to connect to learn more about the market, happy to help both from an investment side (I own some STRs in SB) or as a realtor. 

@Barry Wong

I second what Christopher said. I would add Long Beach to that list. This city is undergoing rapid development and is arguably the last “affordable” beach town. I live in Long Beach and the changes I’ve seen and continue to see are very exciting.

Originally posted by @Charles Cooper :

@Rachel S.

La City allows it, only if it’s personal residence and some other regulations like duration of stays per year 

Yes. That's a real limitation when it comes to airbnb though. I'd love to invest in that space but it doesn't make sense if I can't do it with an investment property and maximize occupancy. :-(

@Barry Wong we are crushing it in big bear. I analyzed all the markets you mentioned except the Hampton's a few years ago and chose big bear. I am very happy with that choice. I felt it had the best mix of STR friendly policies and taxes total market demand And many other factors that made it the best  decision for me. Originally I had looked for a management company like we have for our LTR's but non of them optimized the revenue enough so we started our own management company to give our owners ourselves including the best returns.