Where and Where (NOT) To buy a California STR Vacation Rental

California is a large State and at least a part time residence for the better part of a decade. When I moved to Venice Beach in 2014, AirBnB was just getting hot. So hot and so new in fact that I was able (not allowed) to sublease my Beach Bungalow when I traveled and pay my rent for the year! 

Those were good times, good enough to lead me on my STR journey and purchase my first remodel/STR in the only place I could afford at the time (and would allow STR) the Oregon Coast. 

Fast forward five more years and I've sold countless coastal STR's and vacation rentals to clients from across the country, many of whom are relocating capital from California or nearby States. 

As a dually licensed RE Broker in Oregon & California I often support clients selling in one State and purchasing in the other. So where and why (or why not) should client's look in California to invest in a STR or vacation rental property?

Here is my top list based on experience, value and returns:

- Anywhere Coastal CA - Say what you will about California but vacation rental opportunities are real. When you can secure a STR permit, you can secure BIG revenue and returns. In most southern coastal cities between Venice Beach and San Diego there are pockets or existing vacation rentals that can either transfer or maintain a license. They are highly specific by city and area, often unincorporated areas of a city or county are eligible based on their own rules. One area a little north we keep close tabs on is unincorporated Ventura County. Values are more reasonable and the path to permit can be strait forward.  Production can be off the charts.  For a more entry level investment the Northern CA coast beyond Monterrey can offer vacation rental and second home opportunity. 

- Lake Tahoe - Of course. On the California side a condo eligible for STR can start in the $850k range but depending on how close to the Ski Areas I've seen production as high as 10%+ of valuation. 

- Joshua Tree/Desert Hot Springs/Indio - To the East, the desert is blooming. Investors could be surprised at the cost of some very complete STR homes. Properties in Non-HOA communities and with pools start in the $500k range and luxury properties with 3-4 bedrooms start in the $700-750k price point. Saturation rates can be a bit higher, but well appointed rentals produce. 

When searching for the optimal vacation rental buyer(s) and investor(s) typically search a large geographical area, many times in several States. Although intended for investment, investors should consider the areas and amenities that are not likely to appeal to them personally or areas they visit occasionally. 

Vacation rental ownership and operation will take effort and energy beyond expectations. Having an investment property in a potentially accessible location or destination the owner prefers, will be a value add when they're forced to be on the ground for updates, launch or enjoyment. 

If you're seeking a specific coastal investment or second home eligible for nightly vacation rental usages we keep a exclusive STR HOT SHEET for both California and Oregon as well as a weekly newsletter of the most lucrative STR's on the market. 

Text AJ at 541-800-0455 to discuss your STR portfolio acquisitions or sales.