Bay Area Surrounding Areas for STR

[Leanna Mansour]

Hey all! I have searched so many areas such as Pismo, Arroyo Grande, Monterey, Santa Cruz, and more and I cannot find a place to start a rental arbitrage business. Anyone else near the Bay Area doing short term rentals!? Any tips would be greatly appreciated. Thanks 

[John Underwood]

Quote from @Michael Baum:

CA in general is difficult to do STRs as many municipalities have banned them.

Starting an arbitrage business in your area is kinda like starting up a brand new buggy whip company.

There aren't many places that allow it and then finding someone who would be willing to let you do it is one maybe for every 100 no calls you make.

I would guess many owners would want a decent premium in rent, like 25% above FMV. A 2 year lease and strong language to cover themselves.

Once you get that done, then you need a bunch of $$$ to set it up right. The market you are in would require a better quality of furnishings etc. Plus you need the reserve cash fund to cover expenses and downtime. 

Just my 2 cents.

 Michael nailed it as usual.

Also what experience are you bringing to the table to get someone to want to work with you?