San Diego Coastal Town STR feasibility
Hello Bigger Pockets community!
I am just starting my RE investing journey. Are there any BP members out there with experience in the San Diego coastal town STR market? Looking at Point Loma, La Jolla, Solana, Cardiff, Encinitas and Carlsbad areas. Is the game in San Diego even worth playing? I have a lot of personal stock in San Diego and know the area very well, but not sure the regulations, taxes, and price to entry make the area worth it. Would be more of an appreciation play for me, cash flow not so necessary.
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#5 Managing Your Property Contributor
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- Poway, CA
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#5 Managing Your Property Contributor
- Investor
- Poway, CA
Some of those locations are city of San Diego. City of San Diego has STR quotas. For traditional full time, not OO, STRs there are 2 categories (in reality there are 4 categories but 2 relevant to what you are interested in). One is mission beach. Likely the best STR market in the city of San Diego. Mission beach hit its STR quota at the initial lottery. The other is for the rest of San Diego and last I heard had still not hit the quota. This implies pt Loma and La Jolla have STR permits available.
Now for the financial viability …. My mission beach STRs have done outstanding. Our pt Loma STRs have done ok but I have a rockstar co-host with a killer rate. I believe most properties would be more profitable as a LTR than STR, We do not have any La Jolla STRs.
Solana beach, Encinitas, Carlsbad, and Cardiff are not city of San Diego and have different regulations. I have no STRs in any of those locales.
Good luck