Off Market STR Opportunity in San Diego

[Mackenzie Black]

Mission Hills Neighborhood (on Albatross) active Short Term Rental (STR)

- Asking $1.85M 

- Gross ~20K - $30K per month; Jan ‘23 to current: $256,000

- 85% annual occupancy rate 

- ‌‌‌‌‌‌Average nightly rate $774, up to $1700 

- Utilities average $4900 per year (gas, electricity, water, trash, sewer) 

- Internet averages $112 per month through cox 

- Current property taxes ~$13,000 per year
Seller is willing to sell home fully furnished and ready to go for the right price (~1.9M). Here’s a link to the listing: https://www.airbnb.com/rooms/682505065448399539?viralityEntryPoint=1&unique_share_id=47C39BCB-51A2-4AA1-A307-713A2E122FB3&slcid=937f1238add042458d231604bf82cee4&s=76&feature=share&adults=1&channel=native&slug=WBm6CbQu&source_impression_id=p3_1721171203_P3x_jDuyI8BKccwn

[Dan H.]

Quote from @Andrew Steffens:

Jan 23 - Current @ $256k is a little over $14k average.  $14k avg annualized is $168k which equals about a 8.8% Gross Yield which means cash on cash will likely be 1-4% depending on a few other factors.  If you are looking for the best return I do not think this is it, as I just sold a $2.25M fully turnkey house that will bring in $350k+ per year in FL.  If you are looking just in SoCal maybe this is good, unfortunately I do not have experience in that market.

 Not to pile on, but listing current property tax (~$13k) when asking price places property tax at ~$20k I find intentionally mid leading.