MN resident looking at first REI perhaps in FL, CA, or AZ (among others)

St. Paul, Minnesota
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MN resident looking at first REI perhaps in FL, CA, or AZ (among others)

David John Forliti
Member since 2024 · 6 posts · 5 votes

Hi,

My family and I are looking at REI with a focus right now on FL, CA, or AZ, with other considerations in the mix. We are 10-15 years out from retirement, so our current thought is to get a STR or MTR that we can use part time in a limited capacity until retirement. Not looking to build a huge portfolio or anything, just want a warm place to escape from time to time as well as an eventual retirement location.

We are a bit overwhelmed and looking all over the place. We do like both coasts of FL, but are worried as one would expect about insurance costs. I like Naples but the value on the east coast (e.g. St. Augustine) looks better. We used to live in SoCal and are fond of the area but most coastal areas are not a good fit in terms of value, so perhaps some of the areas around Palm Springs (e.g. Indio) that allow STR. Some interest specifically in Sedona AZ via word of mouth from friends but we need to look into it.

We are preapproved and ready to get going but need to explore our options and get as much good advice as possible. Would be very interested to connect to anyone with thoughts on those areas, in particular anyone doing STR in these areas remotely from MN or the midwest. Open to recommendations to LTR but we lose the occasional access we are hoping to have.

Thanks for reading and best regards!

Dave

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Kenneth Donaghy
Real Estate Broker · San Diego, CA · Member since 2016 · 355 posts · 195 votes
2y

@David John Forliti If I am reading this correctly, your goal is to find property, they can act as a second home, while also being an STR/MTR, and a place you can retire, which is 10-15 years away. Therefore, it really depends on where you want to visit, establish community, maybe and easier travel experience such as direct flight. Because retirement is 10-15 years away, things can change, STR restrictions are always changing, and you may change your mind where you want to retire. My suggestion, is you visit all these potential locations with your family, and see which area calls to you, which areas you can see yourself enjoying, and allow the STR/MTR strategy take the second seat to your enjoyment and lifestyle vision for you and your family.

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  • Carlos Ortega
    Realtor · Indio, CA · Member since 2019 · 23 posts · 6 votes
    2y

    If you're interested in the Coachella Valley you can also consider 55+ communities if you are of age. You might find something more affordable but they do not allow STR's but you can do Seasonal Rentals.

    0Reply
  • Bryon AndrewsBusiness Member
    Real Estate Agent · Saint Paul, MN · Member since 2018 · 201 posts · 104 votes
    2y

    @David John Forliti I have a cousin down in Destin, FL. She manages short term rentals and may be able to help you. Feel free to reach out and I can connect you with her. 

    [email protected]715-892-4596
    Bryon Andrews Real Estate51 Review
    View Page
    1Reply
  • Julio GonzalezPro Member
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    2y

    Hi Dave, welcome to the world of real estate! It sounds like you and your family have some exciting plans ahead!

    Exploring potential investment opportunities in Florida, California, and Arizona for your future retirement and occasional getaways sounds like a fantastic idea.

    Best of luck on your real estate journey!
    -Julio





    561-253-6640
    1Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    2y

    I have had STRs in CA for 25 years. My view is at the state level there is some anti STR sentiment. In addition many CA cities have big anti STR sentiment.

    In San Diego, they recently applied STR quotas. One of my STRs that has been an STR since 1999 did not get a permit.

    At the state level a law was proposed to place additional 15% tax (on top of local occupancy tax) on STRs.  Last year it made it through one chamber of CA legislation before getting shelved.   It seems highly like that it will be proposed again.  I suspect 15% additional tax will drastically hurt occupancy.  

    My recommendation is to choose one of your other two options.  I say this even though we have made a lot of money from out STRs.  Times have changed.  

    Good luck

    1Reply
  • Kenneth Donaghy
    Real Estate Broker · San Diego, CA · Member since 2016 · 355 posts · 195 votes
    2y

    @David John Forliti If I am reading this correctly, your goal is to find property, they can act as a second home, while also being an STR/MTR, and a place you can retire, which is 10-15 years away. Therefore, it really depends on where you want to visit, establish community, maybe and easier travel experience such as direct flight. Because retirement is 10-15 years away, things can change, STR restrictions are always changing, and you may change your mind where you want to retire. My suggestion, is you visit all these potential locations with your family, and see which area calls to you, which areas you can see yourself enjoying, and allow the STR/MTR strategy take the second seat to your enjoyment and lifestyle vision for you and your family.

    1Reply
  • David John Forliti
    OP
    Member since 2024 · 6 posts · 5 votes
    2y
    Quote from @Kenneth Donaghy:

    @David John Forliti If I am reading this correctly, your goal is to find property, they can act as a second home, while also being an STR/MTR, and a place you can retire, which is 10-15 years away. Therefore, it really depends on where you want to visit, establish community, maybe and easier travel experience such as direct flight. Because retirement is 10-15 years away, things can change, STR restrictions are always changing, and you may change your mind where you want to retire. My suggestion, is you visit all these potential locations with your family, and see which area calls to you, which areas you can see yourself enjoying, and allow the STR/MTR strategy take the second seat to your enjoyment and lifestyle vision for you and your family.


    Thanks Kenneth, I agree and that is pretty much where we are. We have been to some of these places already, but we will be visiting some more soon to get more direction. I hear you about the STR restrictions, and hope that LTR could be an option as rules change over time. We see that many areas have so many STR options that saturation is a real concern.

    0Reply
  • David John Forliti
    OP
    Member since 2024 · 6 posts · 5 votes
    2y
    Quote from @Dan H.:

    I have had STRs in CA for 25 years. My view is at the state level there is some anti STR sentiment. In addition many CA cities have big anti STR sentiment.

    In San Diego, they recently applied STR quotas. One of my STRs that has been an STR since 1999 did not get a permit.

    At the state level a law was proposed to place additional 15% tax (on top of local occupancy tax) on STRs.  Last year it made it through one chamber of CA legislation before getting shelved.   It seems highly like that it will be proposed again.  I suspect 15% additional tax will drastically hurt occupancy.  

    My recommendation is to choose one of your other two options.  I say this even though we have made a lot of money from out STRs.  Times have changed.  

    Good luck


    Thank you Dan, I do have a sense that CA is perhaps more risky in terms of being STR friendly looking towards the future. I appreciate the heads up on that legislation and I'll have to look into that further. We love CA, but as an STR location it is probably not at the top of the list right now, but our list seems to change daily, so we will see.

    0Reply
  • Villy Ellinger
    Real Estate Agent · Fort Walton Beach, FL · Member since 2018 · 219 posts · 275 votes
    2y

    @David John Forliti I'm on the Panhandle of Florida - I live here, own investments here (STRs that I manage through my own company) and sell real estate here. I like it here, in other words :-). My suggestion would be that you find the time to personally visit and learn about any of the investment areas that you are considering. Very often investors think they can do well by strictly focusing on the numbers. I'm a numbers person, but I'm sorry to tell you that approach rarely works :-). You need to like, or at least understand, the market where you invest. If you are considering the Emerald coast (Pensacola to Panama City Beach) and have any questions, I'll be glad to answer as best as I can. Any other areas - same suggestion that you do due diligence in more than numbers or online opinions. Good luck!

    1Reply
  • Ricardo Hidalgo
    Real Estate Agent · Member since 2019 · 569 posts · 257 votes
    2y
    Quote from @David John Forliti:

    Hi,

    My family and I are looking at REI with a focus right now on FL, CA, or AZ, with other considerations in the mix. We are 10-15 years out from retirement, so our current thought is to get a STR or MTR that we can use part time in a limited capacity until retirement. Not looking to build a huge portfolio or anything, just want a warm place to escape from time to time as well as an eventual retirement location.

    We are a bit overwhelmed and looking all over the place. We do like both coasts of FL, but are worried as one would expect about insurance costs. I like Naples but the value on the east coast (e.g. St. Augustine) looks better. We used to live in SoCal and are fond of the area but most coastal areas are not a good fit in terms of value, so perhaps some of the areas around Palm Springs (e.g. Indio) that allow STR. Some interest specifically in Sedona AZ via word of mouth from friends but we need to look into it.

    We are preapproved and ready to get going but need to explore our options and get as much good advice as possible. Would be very interested to connect to anyone with thoughts on those areas, in particular anyone doing STR in these areas remotely from MN or the midwest. Open to recommendations to LTR but we lose the occasional access we are hoping to have.

    Thanks for reading and best regards!

    Dave


     Do you have an idea of the cash on cash return you are looking? How much capital are you looking to invest?  Are you wanting an appreciation based market for wealth or cashflow to increase passive income? I think setting your targets is one of the most important things before looking at "different markets". See which returns you are willing to accept on cashflow, appreciation and depreciation for tax purposes. 

    0Reply
  • David Avery
    Flipper/Rehabber · Phoenix Arizona · Member since 2020 · 1k+ posts · 686 votes
    2y

    Arizona 

    Appreciation is King here.!

    Anywhere within 60 miles of Phoenix. 

    Most properties going up $100,000

    per year. 

    PS

    good name 

    0Reply
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