How to turn buy a STR in gold community
(Actually in Goodyear AZ - wasn’t on list) So my parents own a 2bed/2bath 1440 sf property in Pebblecreek golf community. Their house has a 280 degree view of the 1st fairway. This house is beautiful and was used for many years on Pebblecreeks flyers. Per Pebblecreek it is one of the top 3 views in the entire community.
My parents are snow birds and use the house from November to April every year and have for the last decade or more. With kids, grandkids, great grandkids and age they are considering getting rid of it. I told them I want to buy the house. Now yes I would inherit it eventually but not if they sold it or my sisters got it. They would sell it and take the cash.
The house per Zillow is worth $579,000 which is low if you have saw the inside and remodeling done. Not to mention the golf cart garage and landscape added. It’s well worth $600,000. They bought for $300,000 way back when so they have $300 in equity.
Now I live near Reno and have a full time career up here. I can't cover both mortgages although my parents have said they will give me a good price. I am told that this area can collect some crazy short term rental rates most the year but around spring training can get up to $5000 a month. The STR comps I find sit around $4000 for a minimum of 1-3 months. The LTR sit around $2500 a month.
I wanted to pick the brain of people smarter than me. If you had this opportunity, how would you structure the purchase to afford keeping it as a rental? Long or short terms. I am working on numbers but just looking at others opinion here.
Thanks
Tim, I don't want to burst your bubble but I'm pretty familiar with the area and I would be EXTREMELY surprised if the HOA in that community allows short term rentals of any kind. You might be able to do 30 day rentals. Before considering purchasing, I would have your parents send you the HOA documents - there may even be a sub-HOA (or second HOA) as well depending on the area.
Edited to say that you could look at this as a snowbird rental and rent it for 90 days twice per year to two snowbirds (or more) - depending on what the HOA allows. Could be a good mid-term rental prospect (again, depending on HOA). Based on the price, unless they give you an great deal $2,500 LTR may only break even. If you are considering retiring here yourself, that may be good enough to purchase. Good luck!
I looked on Airbnb to see if there are rentals in Pebble Creek. There are, but with a lot of stipulations. 29 days is the minimum rental. It's a 55+ adult community. Minimum age to rent is 40 years old, and ages 40-54 have to be approved by the HOA. Overnight guests have to be at least 19. Here's the listing that has that info: https://abnb.me/cxQ2h8xJWtb
As others have stated above, running STRs in HOAs can be tricky and I tend to stay away from it as the HOA can change the rules at the drop of a hat. If you did decide to run it as a STR from Reno, your most important person will be your cleaner. Make sure you vet the property management company and ask to see their listings to make sure they have good reviews.
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#2 Managing Your Property Contributor
- Property Manager
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Contact the HOA, maybe they know of a PMC that can asssit you
