San Francisco, CA · Member since 2018 · 62 posts · 20 votes
What up BP community!
Living in the sf Bay Area, I always wanted to buy a vacation home where I can get away and use it as abnb. However I can’t seem to find any solid cities to look into with interfering with abnb regulation restriction in their cities. Tahoe stop issuing permit for short term rental. Sacramento is up in my price range but I don’t see many attractions up there to attract people from abnb. So to all, what cities do you foresee that is good vacation that can be use as abnb.
Tahoe did not stop issuing permits. The situation is much more nuanced than that and there are still opportunities to find short term rental properties in the Tahoe area. It is certainly more difficult than 4 years ago but you can do it with the help of a local professional.
Real Estate Agent · Sacramento · Member since 2017 · 26 posts · 8 votes
4y
I agree with some of these comments that CA is a tough market with various rules and regulations but it doesn't mean you cant find a good deal! I would look at beach towns... that's what California is known for and who doesn't want to own property in a beach town? Think about small towns adjacent to bigger attractions like San Diego, Santa Cruz, etc.
Tahoe did not stop issuing permits. The situation is much more nuanced than that and there are still opportunities to find short term rental properties in the Tahoe area. It is certainly more difficult than 4 years ago but you can do it with the help of a local professional.
Real Estate Agent · Sacramento Metropolitan Area · Member since 2022 · 19 posts · 8 votes
4y
You should go to air bnb, look at the properties doing well in Sacramento, and figure out what it is that brings them business. Sacramento may not be the bigger cities, but it is the capital, with the capital building, and a TON of tourism. Plus the brand new golden 1 Arena that brings in concerts all year long.
You should go to air bnb, look at the properties doing well in Sacramento, and figure out what it is that brings them business. Sacramento may not be the bigger cities, but it is the capital, with the capital building, and a TON of tourism. Plus the brand new golden 1 Arena that brings in concerts all year long.
Check VRBO too, they only allow rentals of complete units, not rooms and tents and all that. More objective to get your numbers IMO.
Also Sacramento is on the way to lots of places (Lake Tahoe comes to mind). Sometimes people want to home-base in a larger city and do day trips to the cool little towns around them....
Investor · Sacramento, CA · Member since 2016 · 26 posts · 17 votes
4y
@Dustin Allen My family has a small cabin in Tahoma, CA and we want to rent it out but saw that there is a 500' proximity rule as well as a 900 STR cap in Tahoe. There seems to be dozens of STR w/in 500 feet of our property. Do you have any strategies of getting around this, getting on the waitlist, purchasing rights from someone else, etc?
You can put your application in with El Dorado county and that will get you on the waitlist. Besides that, the only way around the restrictions is to rent for a minimum of 31 days.
Investor · Sacramento, CA · Member since 2016 · 26 posts · 17 votes
4y
@Kevin Zhang I am a Bay Area worker who bought a single family home in Sacramento last year. I'm operating it as a vacation rental on Aribnb/VRBO/Furnished Finder. I've found that it is in high demand for long term stays (31+ days). I had a 100% booking rate last year and already booked 64% of the days for this year.
Bookings have been the following:
1. Our of state parents visiting adult children over holidays - 47 nights
2. Out of state parents visiting daughter who is having a baby - 42 nights
3. Theater performers - 31 nights
4. My Family / Friends bookings (discounted) - 25 nights
5. New parents in town to receive and bond with surrogate child - 38 nights
If I'm fully booked for the month, there is about $800-$1,000 per month in cash flow after all property level expenses (mortgage, insurance, tax, utilities). Break-even is likely 80% occupancy so there is not a lot of room but I can use the house when its vacant and I'm building equity.