Short Term Rental strategy in San Diego area

[Hal MacKenzie]

Hello, I'm very interested in purchasing a property in the San Diego area, with the intent to AirBnb it out for most of the year and then use it myself for a couple months out of the year.  However it is a fairly expensive area and there are some difficult short term rental restrictions being passed in July, which will essentially require 30 day rental minimums.  I was initially focused on La Jolla, Pacific Beach and Mission Beach areas, but all are subject to these new restrictions which I think will kill my revenue so I have shifted my search slightly further north to areas that have a similar feel but no such restrictions - in particular Encinitas, Cardiff and Carlsbad.  My primary residence is in the NYC and while my wife and I have spent a good amount of time in the San Diego area over the last couple years, we do still have a lot to learn about the San Diego markets.  It would be so much appreciated if there is anyone out there who has experience with short term rentals in these areas and could provide any guidance.  Thanks so much,

Hal

[Twana Rasoul]

@Hal MacKenzie A few items to keep in mind/consider

Short term restrictions in San Diego are being pushed out into next year, 2023, until the Coastal Commission can weigh in on the decision and certify it.  

Your budget will play a big role in what areas are possible to purchase something in and where it is not.  Someplace like Oceanside will be the most affordable North County Coastal community but it certainly is different than Encinitas, Solana Beach or La Jolla and is worth driving around in before making a long distance decision.

Short term rentals can be very profitable but I would caution of ever using short term rental numbers to purchase a property...One should be comfortable with the investment with long term rent numbers.  Of course medium term rental can be a good option as well.

Some HOA's will sometimes restrict even medium term rentals so you want to look out for that. I sold a condo on the beach last year in PB and the HOA restricted rentals of less than 6 months.