Starting an STR in Berkeley

[Greg S.]

I am interested to hear from homeowners who have day jobs (not WFH) that found a way to start and/or manage an STR at an owner-occupied duplex, triplex or 4plex. I am particularly interested to hear from owners in Berkeley, CA.

I own and occupy a triplex in Berkeley (since 2002).  My W2 federal income taxes are about $35K.  My untapped depreciation potential is roughly $1 million for each of the two large units. These units have always been owner occupied except for a few short term guests (for feasibility assessment purposes).

I would like to vacate one of the large units and establish a loophole STR.

Which pros did you hire to support set up and/or operation of your STR? Which pros would you recommend?

Is the 100 hour criteria easy to meet? What is the most difficult part of meeting the loophole eligibility criteria?

Why did an STR turn out to be a good/bad idea for you?

If you provide STR professional services to homeowners in my situation, I would be particularly interested in your thoughts, especially if you are knowledgable about the vagaries of STR code requirements in Berkeley. As of May 2025, I am fully funded and ready to roll.

[Mohamed Youssef]

Meeting the 100 hour material participation requirement is definitely doable if you live in the same area where the STR is located.

The most important point to watch for is not to hire a management company in the first year or two until you recognize the benefits from the depreciation or any suspended losses. Just manage it yourself from furnishing to guest communication during that period to ensure you meet the requirements.

Good luck!