Oh yeah BG… I know my situation is MUCH different. No, not all my rentals are short-term rentals. A few are on 2 year leases.
Absolutely I know and understand that flu and spdrun are NOT looking for that type of set up. I understand what the typical investor is looking for here locally.
As far as good rentals, I was speaking more about demand and occupancy rates and people that are paying cash. If you’re trying to argue that short-term rentals wouldn’t work here I can tell you they already are working. I spoke to a few people that rent their furnished high end properties out here in Santaluz by the night/week/month.
Same thing in Carmel Valley. In fact, while we were waiting to move into our house we rented a townhome in Carmel Valley off of VRBO.com. Check out VRBO.com, Homeaway.com, etc. There is actually quite a bit of demand for luxury rental properties here in the SD area as you probably know with tourism the way it is.
http://www.vrbo.com/search/usa/california/san-diego-county?q=San+Diego San Diego has over 3,400 there listed and I’ve been watching the occupancy rate on several high end ones and some are rented all the time! Wise owners won’t rent by the month and just try to churn weekly/nightly rentals.
HomeAway (they actually own VRBO) has over 3,500 rentals. Granted many of the rentals on VRBO are probably listed here as well.
But you simply can’t dismiss short-term vacation rentals vs. traditional rentals. If you know what you’re doing..there is a gold mine in it. It’s a LOT of work however.
“Charming” (i.e. rather dumpy) places are going for as much as $3,750 per WEEK in Del Mar. – http://www.vrbo.com/4851
Here in Santaluz there are even people renting out their places and from what I inquired with the HOA board before I bought my house, they will allow short-term rentals 7 days or longer. And heck, Santaluz has some of the strictest HOA rules in all of San Diego. And they allow it.
http://www.vrbo.com/426430 Just one example of many (this one happens to be in Santaluz). $13,500 per WEEK. $16,600 per month. Check out their rental calendar.
But even if they didn’t. There would be no way to really “police” this because it’s such a huge development over 3,800 acres. And you can call in your guests ahead of time with the security guards and they wouldn’t know they were renting them. You can give guest passes that are good for a # of days so even here it is easily possible to do it. Same as several other gated communities in Rancho Santa Fe and this general area.
Many affluent people own second homes here as you know. Some of them are renting them out during Del Mar Racetrack season. One of my friends rents out his place in La Jolla in a gated community for $15,000+ a month during that time of year. (He rents it two months out of the year). That’s the only time he rents it out and he flies in from Texas to use it throughout the year. He paid cash for his place back in 2010.
I guess my point was that people paying cash and buying in affluent areas in good school districts I don’t see too much risk long-term. However, if prices keep going up the pace they are going I would change my opinion on that.
As far as that area of that $125k place I have no clue at all how nice it is. I was only assuming (and it sounds like wrongly) that it was a bit rough if that place was going for $125k. That sounds like a total steal!
