My husband and I are first-time investors and are considering buying a STR property in Three Rivers, CA, near Sequoia and Kings Canyon National Parks. I searched on the forums, but any post I found about that area was from several years ago, so I'm looking for anyone who has some more recent/current experience with owning a STR in that area. We live in southern CA ourselves, and are also interested to find a place that we could use ourselves occasionally as a vacation rental. I also saw that Three Rivers was listed on Airdna's list of top places to own an STR, which is another reason we are interested in that area and would love to hear from anyone with experience owning a rental property there.
Boise, ID · Member since 2018 · 203 posts · 188 votes
4y
Just my advice, so take it for what it's worth. I've made this mistake before on STR property selection.
Be very careful when analyzing STR properties that "you might want to stay in now and again". Analyzing a property for an investment should be done with math and underwriting. Basically, how much Net Operating Income will the STR produce in relation to its cost. You are much better off finding the best possible STR as an investment. Then use the profit from that investment to AirBNB rent in your favorite vacation locations. Confusing the two could cost you thousands or maybe tens of thousands per year. The chance that the best possible STR investment property just happens to be at your favorite vacation spot is slim to none.
A very quick for example:
Option 1 - Best possible STR investment is 300k and produces 45k of Net Income annually.
Option 2 - Best STR property in your vacation location is 300k and produces 25k of Net Income annually. You just lost 20k per year vs booking out Option 1 year round and using the profit to stay in an AirBNB now and again.
Investors always forget (myself included) that when you stay in your own STR you are losing the income it could have made, so you never really stay there for "free".
Real Estate Agent · Visalia, CA · Member since 2020 · 8 posts · 3 votes
4y
@Susan Snodgrass. I don't own a STR in Three Rivers, but I'm from the area work with a number of investors in the area who do, including property management companies. Three Rivers and neighboring towns that lead to the Sequoias have become popular for STR. If you're interested in chatting more, feel free to message me. Happy to share any insight and connect you with some resources.
Boise, ID · Member since 2018 · 203 posts · 188 votes
4y
Just my advice, so take it for what it's worth. I've made this mistake before on STR property selection.
Be very careful when analyzing STR properties that "you might want to stay in now and again". Analyzing a property for an investment should be done with math and underwriting. Basically, how much Net Operating Income will the STR produce in relation to its cost. You are much better off finding the best possible STR as an investment. Then use the profit from that investment to AirBNB rent in your favorite vacation locations. Confusing the two could cost you thousands or maybe tens of thousands per year. The chance that the best possible STR investment property just happens to be at your favorite vacation spot is slim to none.
A very quick for example:
Option 1 - Best possible STR investment is 300k and produces 45k of Net Income annually.
Option 2 - Best STR property in your vacation location is 300k and produces 25k of Net Income annually. You just lost 20k per year vs booking out Option 1 year round and using the profit to stay in an AirBNB now and again.
Investors always forget (myself included) that when you stay in your own STR you are losing the income it could have made, so you never really stay there for "free".
Thank you all for your input and advice! @Josh Ormonde and @Andrew Street I will reach out to you to learn more. @Mike Smith your advice is something we definitely talk about and important to take into consideration. Thank you!
One other counter point about a vacation house you like to use yourself. Personally, I find more passion and motivation to improve the guest experience, put in sweat equity and come up with creative ways of improving the property to make it more attractive if I love the area. In that case, you may do better overall if you're passionate about the area and the numbers are similar to other areas you're considering. Maybe it's just me. :)
Rental Property Investor · Rancho Palos Verdes, CA · Member since 2022 · 10 posts · 5 votes
4y
Hello Susan!
I would love to connect! I am on my 4th STR and we chose Three Rivers for the exact same reason as you. I always believe to go do business in places you love to go to so you can connect with people, support the locals thereby improving your business experience, and just plain be excited to enjoy the home when it's not booked! There's not many inventory in TR, the ones not selling are in areas that you should avoid because of regulations. Let me know where you are now with your process.
@Susan Snodgrass what did you decide on three rivers? I’m also looking in the area from Yosemite to Sequoia. Looking for STRs near lakes as well. I’d love to know how your search is going
Specialist · Pasadena, CA · Member since 2022 · 4 posts · 2 votes
4y
Hi there, I got this reply back from Tulare County permitting center:
Hi Dawn,We do not have a short term rental ordinance at this time. Our parcel zoning is site specific so we would review each parcel on a case by case basis with a scope of what is being requested for each parcel. Thank you for reaching out.Regards,Samantha Franks, Planner IV, Acting Permit Center Manager
@Susan Snodgrass how has your search been going? Could you share any obstacles you've faced? @Junee Gam what are the areas that have enforced regulations? The message above from the county makes me think there aren't any, but your feedback has me asking more questions!
Rental Property Investor · Rancho Palos Verdes, CA · Member since 2022 · 10 posts · 5 votes
4y
I was informed they are currently using a drafted ordinance? Anywhere in South Forks is not allowed per the 3 agents I’ve spoken to. In fact, it was the sellers agent so I know he would have loved for it to not be true because they’d have to decrease sale price to get any bids. I also spoke to Tulare county so I was told it depends what your parcel is zoned for.
Specialist · Pasadena, CA · Member since 2022 · 4 posts · 2 votes
4y
Okay, thank you @Junee Gam. So I'm guessing we'd have to run the property by the county before putting any offer in, but concerned that process would take so long we'd miss our window for buying...any advice? What's been your experience working with the county?
Hi everyone! Wanted to update about our search. We haven't been successful at finding a property yet that the numbers work. We are still open to the area, but we haven't found anything at the right price point yet. From some of these other comments on here, I'm also concerned about the STR regulations there... I appreciate everyone sharing their experience and advice!
Property Manager · Royal Oak, MI · Member since 2015 · 16 posts · 2 votes
4y
Great post and responses. I am just like others here and looking for to enter Three Rivers STR market. Can any of you share realtors in that area that work with investors? There are no agents in Agent finder for Three Rivers. Thanks for your help.
Great post and responses. I am just like others here and looking for to enter Three Rivers STR market. Can any of you share realtors in that area that work with investors? There are no agents in Agent finder for Three Rivers. Thanks for your help.
Hey Warren, I am a license real estate agent and a member of Tulare County MLS you are more than welcome to shoot me a private message here on BP or send me a text message, happy to help!
Okay, thank you @Junee Gam. So I'm guessing we'd have to run the property by the county before putting any offer in, but concerned that process would take so long we'd miss our window for buying...any advice? What's been your experience working with the county?
Hello Dawn,
I never buy without calling the county/city that actually gives out the permits. I give them the address of the property, ask for whether it can STR. You can do this after your offer is accepted during your inspections. It would be a waste of time if you call for each property before putting an offer, market is very competitive there btw - plus it took me 3 weeks to get a call back from county. And the prices are ridiculous right now. The home we purchase didn’t even appraise for the asking price and we ate that cost because there’s none( zero) other properties that would still make the numbers work.
Great post and responses. I am just like others here and looking for to enter Three Rivers STR market. Can any of you share realtors in that area that work with investors? There are no agents in Agent finder for Three Rivers. Thanks for your help.
I found it hard to find any help, workers, and support in Three Rivers. It is a very tight knit community. I just created a group on fb called Three Rivers and Sequoias Vacation Rentals. To anyone who is interested. Please Join.
Just wanted to check in here and say I am open/interested in purchasing my first STR and looking at Three Rivers for many of the reasons already shared. I am naturally drawn to the Sierras and surrounding towns, live in LA so a good distance, and the market of course appears to be strong. I have some time off from my day job and will be planning to stay in Three Rivers next week, just to familiarize myself more with the area and see what may be possible.
If anyone has suggestions and/or wants to connect please let me know!
Just wanted to check in here and say I am open/interested in purchasing my first STR and looking at Three Rivers for many of the reasons already shared. I am naturally drawn to the Sierras and surrounding towns, live in LA so a good distance, and the market of course appears to be strong. I have some time off from my day job and will be planning to stay in Three Rivers next week, just to familiarize myself more with the area and see what may be possible.
If anyone has suggestions and/or wants to connect please let me know!
Rental Property Investor · Rancho Palos Verdes, CA · Member since 2022 · 10 posts · 5 votes
4y
Hello Robert,
We are currently remodeling the property we just purchased. I’m trying to connect with local hosts in Three Rivers and Sequoia vacation rental group - looking at the current calendars, it looks promising! But summer is their peak season so hard to gauge how well they do. But we absolutely love the area!
Investor · United States · Member since 2020 · 202 posts · 284 votes
4y
@Dawn Asher@Junee Gam ... and anyone else who operate STRs in Three Rivers, i have an underwriting/ financial projection question:
I spoke to someone the other day who mentioned that Airbnb only recently (within the last year) started charging guests the 10% occupancy tax at checkout. Before this, it was up to hosts to pay up at the end of the tax year, which made their gross revenues look artificially high (because they were pre-occupancy tax). This switch creates an issue for me as I run financial projections on deals - I've been projecting based on specific comps using past 12 month data from Pricelabs/ Airdna, etc. who scrape the web for rates at the time of booking and combine them into yearly revenue totals. But if Airbnb only recently started collecting occupancy taxes from guests, it means the months before the switch shows revenue 10% above what they actually were after taxes. (My assumption here is that guests are only willing to pay so much, so if you're charging them directly they'll spend less from a daily rate perspective. 10% is a big miss in projections, so I want to be sure I'm factoring occupancy taxes in correctly.
Do any of you know exactly when Airbnb started automatically collecting occupancy taxes from guests in Three Rivers?
My husband and I are first-time investors and are considering buying a STR property in Three Rivers, CA, near Sequoia and Kings Canyon National Parks. I searched on the forums, but any post I found about that area was from several years ago, so I'm looking for anyone who has some more recent/current experience with owning a STR in that area. We live in southern CA ourselves, and are also interested to find a place that we could use ourselves occasionally as a vacation rental. I also saw that Three Rivers was listed on Airdna's list of top places to own an STR, which is another reason we are interested in that area and would love to hear from anyone with experience owning a rental property there.
Thank you!
Susan Snodgrass
Hey Susan! I would love to know if you were able to get your STR started in the area! Would love to connect!