Short-Term & Vacation Rental Discussions

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Eric Stets
  • New York City, NY
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To LTR or STR condo in Irvine, CA

Eric Stets
  • New York City, NY
Posted Jun 5 2022, 19:29

Hi All - Closing soon on a 3 bedroom, 2 bath townhouse in Irvine, CA. This will be our SFH that we will move in to eventually (next fall Maybe, could be as late as summer 2024.

I am looking to gauge if it's relatively painless to run an AIRBNB in Irvine and how the demand is (is there demand in november/february?  Sumer only?   I am thinking if the short-term can be upwards of 5K/month compared to a more well known # of roughly $3200/month on a long-term tenant that it would be worth it.  I'd have to buy everything needed (furniture, wifi, tvs, couch, beds, etc.).  

I do know Irvine has stricter regs on airbnb and the shortest you can go is 30 days, so that has to be kept in mind.  If anyone has any advice thank you in advance for chiming in!

Orange County, California

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Michael Hyun
  • Investor
  • San Jose CA
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Michael Hyun
  • Investor
  • San Jose CA
Replied Jun 6 2022, 11:03

So that's not considered STR anymore, its called MTR - mid term rentals. You have to check with your HOA if this is possible or not. If not, I wouldn't even consider it. Read the rental restrictions in the HOA docs.

I'd say you can furnish a 3/2 townhouse for maybe 10k or so - this is not for amazing furniture, just okay quality. Maybe up to 16-17k if you want to go more high end furniture. Remember, its a tax write off. I can't speak for demand, but I have a feeling that it would do well - I think 5k per month sounds reasonable. But if you're only planning on doing this for one year, is it worth the hassle?

Think about your ROI. If you bought 15k worth of furniture, you might make 1500 more per month (compared to LTR), it'll take you 10 months to make your money back. So if you're planning to live there in 12 months, then you'll break even at month 10, then two months later you're gonna move into the home? So you'll make 1500 for the last two months. Is managing a MTR worth it in that case? Granted it is much easier to maintain, but you also have to spend a lot of time to furnish it and actually set it up, not to mention creating the listing, managing turnovers, finding a cleaner, etc. Plus, it could very well not do as well as you expect.


What are you going to do with all the furniture when you move in? If you sell the furniture, (which is quite a bit of work - you wont be able to sell everything) you might have to pay depreciation recapture also. 

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Eric Stets
  • New York City, NY
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Eric Stets
  • New York City, NY
Replied Jun 6 2022, 21:08

Thank you for the reply. I did check with the HOA and they match Irvine. So yeah the MTR or minimum 30 day stay is where it's at. I'll have to dig in deeper on the price point I can get. I do think 5K is reasonable, but there is a chance it could be higher. I see some 2 bed or 3 beds listed for 6+. But the key word there is listed. It'd be nice if there was a historical list you could see, even if it kept the addresses anonymous to see how the market is.

You're right about the furniture.  Beds aren't exactly cheap and you do need everything.  Kitchen supplies, sheets/towels, couch, some decorative stuff, everything you need to live.  There are some impressive listings out there.  Don't need to go overboard though.  

I don't think we would keep much of it.  I would be fine with it, but I think other family wouldn't want to keep used stuff used by multiple tenants.