STR one or both units of a Long Beach duplex?

Question

I just bought a duplex in Long Beach, CA with the intention of LTRing the top unit and STRing the bottom one. But now I'm considering just STRing both. I'm hiring a company to furnish and set it up so why not both? The idea for LTR was for security/stability but honestly I know I would make a lot more with STR and the duplex is in a very desirable location; I've already done my research on how well it should do with the right systems in place. WWYD?

Jayson Cain · Answer

@Jennifer Gardner Congrats on the new duplex! I happen to have a STR unit in Long Beach, CA as well. First I would check with the city about the ordinances as it recently changed. The city requires you to apply for a permit, but it should be a simple process. It's been streamlined and taxes are all collected through most of the hosting platforms.I'm also connected with most of the property managers and operators in the area so if you need a second opinion when researching feel free to reach out.

Jennifer Gardner · Answer

@Brenden Mitchum thanks so much for your kind words and encouragement! This is the way I'm leaning as well and I'm interested in the mid-term/furnished longer term rental if all else fails, sabbaticalhomes.com etc.

Appreciate the vote of confidence!

Brenden Mitchum · Answer

Hey @Jennifer Gardner, congrats on the new acquisition!

Honestly, there are times and places where it would make sense to diversify. Diversification is often presented as a way to lower risk but often times you are actually risking loss of income you would have received had you simply gone with the better investment strategy. This seems like a good example of that. As long as your research strongly suggests high demand, just do STR on both. Worse case scenario, you can reposition one to a furnished LTR or even mid-term rental. Management cost/STR unit should be cheaper by doing both instead of one anyways.

Just my two cents but hope it's the push you need to go for it! If it goes south, please feel free to shoot me a strongly worded DM!