House Hacking or Out of State investment

[John Philip Eugenio]

Good morning BP,

Last month, i just closed my 2nd property a single home and currently live in it. I plan to move out and turn this property to STR property.

Today's market, there are so many uncertainties, and should I:

House hack and buy a duplex in San Diego county next year, and turn my current resident as STR or LTR? Both my properties are in CA and appreciation houses here are great which makes it very attractive. I have W2/good paying job so I am not worried about cash flowing right now. Negative side is that I have to wait little over 10 months before I can invest again. I plan to use FHA or low downpayment conventional loan to House hack.

Or

Invest out of state multi-family such as  in Cleveland, OH. The houses there are very affordable and approximately 60% of the population are renters. Looking for other recommendations as well. I plan to visit these markets to scout the areas before I start investing into these markets.

Note, I am not worry about scaling right now, and I am investing for long term.

-John

[Bob Okenwa]

@John Philip Eugenio

Be careful with LTR's in San Diego. I believe they passed an ordinance to limit the amount of STR's. The Short-Term Residential Occupancy (STRO) ordinance limits whole-home, short-term vacation rentals to 1% of the city's overall housing stock, except for in Mission Beach where 30% of homes can be rented. It also requires property owners to obtain a license for vacation rentals and limits them to one rental property within the city of San Diego. The law requiring a license will go into effect on July 1, 2022.

With that being said, I'd turn it into a LTR and house hack if the numbers made sense.