This seems good... Right?

[Todd Mason]

I'm looking at a property in a city that is currently no longer issuing new STR permits and come Jan 1 2023 will shut down all operating STR's EXCEPT those operating in an HOA that allows them ( I've confirmed with the city ). They will continue to allow those and issue new permits and renew existing. I have spoke to the HOA and they allow STR's and don't have plans to cancel them ( although I know that can change )

The property I'm looking at works very well numbers wise and I do vacation in the area so I'd be able to use it also. The market is a great appreciating one and worst case scenario if it did get down as a true STR I could rent it long/short ( 31 day minimum ) and cashflow.

My thought that is when the ban comes and the pot gets thinned my property should theoretically do better revenue wise cause there are less properties to choose from.

Am I right with that line of thinking?  Any and all thoughts would be greatly appreciated thanks!

[John Underwood]

So either the city or HOA could change their mind at any time. Seems risky.

If the numbers also work as a LTR then you would have a backup plan.