Best Cali City to Invest in STR
I've been researching Big Bear cabins to invest in this year but do not see a cash on cash evaluation for more than 8%.
Is there another area in SoCal that is better to invest in or should I consider out of state? Any feedback is appreciated.
Most Popular Reply
I would be extremely cautious about adding any STR units in CA. STR are absolutely in the crosshairs of the politicians and there is growing opposition to them among the people. We've already seen cities outright ban them or create such burdensome regulations that they might as well be banned. They are being blamed for contributing to the housing shortage.
If you must invest in a STR in CA, I'd suggest staying far away from the large cities and find a smaller, Republican area. These will be the areas far less likely to impose STR restrictions and destroy your business overnight.
Keep in mind, even doing that, our beloved Governor Nuisance is a firm believer in allowing for local control... unless it goes against what he wants and then there needs to be a CA law forcing the local communities to follow his will. Therefore, we may find a CA law coming any day that heavily restricts STR in all of CA.
For me to have a STR in CA, it'd have to have awesome returns and be an easy switch to a LTR.