Airbnb/STR in Torrence, California or Atlanta Georgia

27 Replies

Hey what's up guys!!I just wanted to ask some questions regarding Airbnb/STR in Torrence, California or Atlanta. I'm from New York and the rules here regarding STR are draconian to say the least. I've been looking elsewhere like Atlanta and Cali. I lived in Atlanta for 8 months and saw it was an up and coming city, corporations are moving down there and the city lenient in regards Airbnb/STR. I did stay in an Airbnb for awhile which sparked my curiosity about the city. Now, also did stumble on a city like Torrence in Cali which had at least had a 70% occupancy rate during the worst of the pandemic and is currently around that rate. STR rules and laws are also lenient there , it's 20 miles from downtown LA, it's a coastal town, not to far from Redondo, Manhattan Beach and Marina del Rey. So my questions is in regards to anyone's experience in regards STR and Airbnb in either one of these towns, What does your profit look like per month, are taxes with the city an issue, how is or was your occupancy rate and do you own your property or do you lease? If anyone has any info I would definitely like to connect and possibly do business. Thanks !!

Updated about 2 months ago

My bad I meant to put Torrance!! I just wanted to ask some questions regarding Airbnb/STR in Torrance, California or Atlanta. I'm from New York and the rules here regarding STR are draconian to say the least. I've been looking elsewhere like Atlanta and Cali. I lived in Atlanta for 8 months and saw it was an up and coming city, corporations are moving down there and the city lenient in regards Airbnb/STR. I did stay in an Airbnb for awhile which sparked my curiosity about the city. Now, also did stumble on a city like Torrance in Cali which had at least had a 70% occupancy rate during the worst of the pandemic and is currently around that rate. STR rules and laws are also lenient there , it's 20 miles from downtown LA, it's a coastal town, not to far from Redondo, Manhattan Beach and Marina del Rey. So my questions is in regards to anyone's experience in regards STR and Airbnb in either one of these towns, What does your profit look like per month, are taxes with the city an issue, how is or was your occupancy rate and do you own your property or do you lease? If anyone has any info I would definitely like to connect and possibly do business. Thanks !!

Mardochee, I live in Torrance but operate elsewhere in the state. It’s a good centrally located area as you mentioned. Beaches, LAX, DTLA, Disneyland, Port of Long Beach... however your acquisition costs can be very high depending on the type of property you’re targeting. Single families will approach $800-1M. Do your returns can be better elsewhere. 

OH wow, well I'm used to those prices. Atlanta's single family prices can be 250k to 600k for a large single family in a decent to very good area. I assume the appreciation is in Torrance awesome however correct? Either way I'm looking at both markets due to  America opening up again. I really do like the idea of Torrance and Atlanta ...

I think your best bet might be to find some properties for sale and check out airdna for what the rates and occupancy is around the property you found.  You can then run those numbers through the property calculator here on bigger pockets.  The calc has a vacancy % option in there so that should def help you out.  I hope this helps answer your question.

@Mardochee Pierre

I believe most of the information you'd like to know can be found here https://www.torranceca.gov/our... In short, there are some regulations, such as needing to register, have insurance, pay the taxes, but nothing that I would term draconian. Torrance is known to be fairly conservative in relation to much of LA County, especially compared to the West Side (ie, Santa Monica), so property rights are still something that matters here.

@Mardochee Pierre  I am very bullish on Torrance and focus my real estate investment in the South Bay (beach cities, Torrance, Gardena, PV, etc). City Ordinance 3861 has been in place since 2019 and is relatively reasonable as far as LA short term rental requirements go. I don't know anyone with an AirBnb in Torrance, but I know of some in surrounding cities and they do fine. The rentals are successful and more than cover holding costs of the property with strong occupancy and decent cash flow. Personally, I'm more interested in the exposure to the appreciation. The appreciation that we see in this area is incredible.

Originally posted by @Matthew Forrest :

@Mardochee Pierre I am very bullish on Torrance and focus my real estate investment in the South Bay (beach cities, Torrance, Gardena, PV, etc). City Ordinance 3861 has been in place since 2019 and is relatively reasonable as far as LA short term rental requirements go. I don't know anyone with an AirBnb in Torrance, but I know of some in surrounding cities and they do fine. The rentals are successful and more than cover holding costs of the property with strong occupancy and decent cash flow. Personally, I'm more interested in the exposure to the appreciation. The appreciation that we see in this area is incredible.

Wow, well the property appreciation is awesome. As I looked over the rules and regulations I see that Torrance is extremely lenient and as I did my research not thst many short term rentals are around in comparison to Redondo, Manhattan Beach and even Venice. I’m definitely interested.

 

@Mardochee Pierre I know people that have an Airbnb in Venice (not sure how legit it is) and it PRINTS money. I'll follow-up today as ask if they have permits and everything. I made this comment on another short-term rental thread, but if you're not married to Torrance, you might also look at Long Beach, Joshua Tree, Palm Springs, and Mammoth Lakes. They're other cities with well clear rules around short term rental with good STR demand and solid appreciation.

Oh no,  I’m not tied to Torrence at all. I just want to get clear guidelines to what the rules before I unknowingly break them. I’m not from Cali and this will be my first time coming out there so I’m open to any advice in regards to a list of towns I can do this in. 

I live in Marina Del Rey and have never heard of anyone saying "let's go to Torrance".   I would say stick to as close to the coast as possible but also make sure to take into account California taxes.  They're some of the highest in the country and will eat up a lot of your profit.

@Gina Cabell Hey! I say let's go to Torrance all the time! In all seriousness the sentiment of what you're saying is correct. Torrance isn't a "vacation destination", but it is:

-reasonably priced (you can get a 3 bedroom house for $250/night)

- close to the beach or well located(West Torrance is less than a mile which is technically closer than some parts of MDR ;)  or close to the freeway and 20 minutes from all of the beach cities, MDR, Culver and a little more to SM and DTLA)

-clearly regulated and allows for AirBnb (from what I can see MDR and the beach cities make it hard to have an airbnb via disallowing them altogether, not having regulations posted at all which makes it hard to understand what the risks are or requiring owner occupancy)

I have a former coworker that cash flows more than $2500 a month in Gardena. Who wants to go there? I don't know, but if there is demand and the numbers work who cares.

@Mardochee Pierre I grew up in Queens and would love to help you make this work out. I'm not an agent and I have nothing to sell you, but I love looking at houses so if you make a trip out here and want to explore DM me and let me know if you want someone to join you. 

Updated about 2 months ago

Relating to MDR beach proximity I'm not counting Mother's Beach because it's not as nice as the prime ocean beaches and it doesn't backup my argument!

Originally posted by @Matthew Forrest :

@Gina Cabell Hey! I say let's go to Torrance all the time! In all seriousness the sentiment of what you're saying is correct. Torrance isn't a "vacation destination", but it is:

-reasonably priced (you can get a 3 bedroom house for $250/night)

- close to the beach or well located(West Torrance is less than a mile which is technically closer than some parts of MDR ;)  or close to the freeway and 20 minutes from all of the beach cities, MDR, Culver and a little more to SM and DTLA)

-clearly regulated and allows for AirBnb (from what I can see MDR and the beach cities make it hard to have an airbnb via disallowing them altogether, not having regulations posted at all which makes it hard to understand what the risks are or requiring owner occupancy)

I have a former coworker that cash flows more than $2500 a month in Gardena. Who wants to go there? I don't know, but if there is demand and the numbers work who cares.

@Mardochee Pierre I grew up in Queens and would love to help you make this work out. I'm not an agent and I have nothing to sell you, but I love looking at houses so if you make a trip out here and want to explore DM me and let me know if you want someone to join you. 

I should be there the second week of July. There meaning Los Angeles area. Up to 50 miles out if I have to. Hey , so you’re from Queens !!?? I got family from all over there. Saint Albans, Cambrian Heights, Jackson Heights, LIC, Astoria,Ridgewood etc 

Originally posted by @Mardochee Pierre :
Originally posted by @Matthew Forrest:

@Gina Cabell Hey! I say let's go to Torrance all the time! In all seriousness the sentiment of what you're saying is correct. Torrance isn't a "vacation destination", but it is:

-reasonably priced (you can get a 3 bedroom house for $250/night)

- close to the beach or well located(West Torrance is less than a mile which is technically closer than some parts of MDR ;)  or close to the freeway and 20 minutes from all of the beach cities, MDR, Culver and a little more to SM and DTLA)

-clearly regulated and allows for AirBnb (from what I can see MDR and the beach cities make it hard to have an airbnb via disallowing them altogether, not having regulations posted at all which makes it hard to understand what the risks are or requiring owner occupancy)

I have a former coworker that cash flows more than $2500 a month in Gardena. Who wants to go there? I don't know, but if there is demand and the numbers work who cares.

@Mardochee Pierre I grew up in Queens and would love to help you make this work out. I'm not an agent and I have nothing to sell you, but I love looking at houses so if you make a trip out here and want to explore DM me and let me know if you want someone to join you. 

I should be there the second week of July. There meaning Los Angeles area. Up to 50 miles out if I have to. Hey , so you’re from Queens !!?? I got family from all over there. Saint Albans, Cambrian Heights, Jackson Heights, LIC, Astoria,Ridgewood etc 

Torrance beach is nice, Hollywood Riveria, PV, Redondo its all pretty good and good schools generally. Good luck!

California could be way more landlord friendly than it is, and the STR's are getting chipped away and capped more and more. You being a New Yorker..I recommend ATL. There is opportunity there. I recommend checking property and income taxes in the states you consider and get super specific down to the county level. It is an oft-skipped step when deciding. Z

Originally posted by @Zambricki Li :

California could be way more landlord friendly than it is, and the STR's are getting chipped away and capped more and more. You being a New Yorker..I recommend ATL. There is opportunity there. I recommend checking property and income taxes in the states you consider and get super specific down to the county level. It is an oft-skipped step when deciding. Z

I appreciate that , you’re speaking truth when you property taxes and being landlord friendly. Well I’d like to take a look even if I buy in Cali as a future hedge. 

 

I live near a STR in West Torrance, and it's always busy… demand is there. But right now you can't get into a West Torrance house for under a mil. I personally think returns are probably better elsewhere.

I completely agree with the others on targeting San Pedro and Long Beach. These are some of the last affordable communities with ocean frontage in SoCal. I have clients that have done very well in LB with STRs. The other local beach communities have been anti-STR for some time now.

Mardochee,

here is my experience on STR...for what it's worth. I would check Atlanta GA Airbnb and see what they post there to get an idea, scope out the market at least for what to charge. You don't want to over/under charge out of the market - best to charge lower and get more booking, to keep cashflowing. Might want to call some of the Airbnb to inquire as if you are looking for STR yourself, cold call them and just say you are just inquiring fees, house rules, local rules etc. and looking for now and have not decided. This is how I would do it, also what is the market rate. In NM I find that it's not unusual to be able to charge market rate $2500 - $2800/mo for 3bd 1300sf home when typical 2 bd rent is maybe half or less than that or 2.5 - 3x the note that I have plus charge other fees like cleaning fees, refundable deposit, etc . I'm house hacking my STR and can basically live in a nice home for free by monetizing my primary home. It's a decent side hustle, which I'm attempting to scale without owning the property, using my own money or credit - its OPM, OPP. STR can be lucrative across the board, better in growing locations but not absolute must. There are various reasons for STR for people, from vacation to consulting work, military, internship etc. it runs the gamut. Just my thoughts and experiences on STR. Just do as much due diligence as you can - ie local rules, if any etc. Hope this gives you food for thought on approach....