How’s your arbitrage experience?

[Keith Mintz]

I'm curious how other STR arbitrage investors in San Diego are doing? What areas do you look in, what do you look out for?

I have a good arbitrage opportunity in close to downtown and wondering if I should take it on or partner up with someone. I mainly manage but I haven't done STR arbitrage yet and I'm wondering if it's really worth it.

[Michael Baum]

Hey @Keith Mintz, I am not a fan of arbitrage myself. San Diego has some spotty regs here and there plus it requires a permit of which there are waiting lists.

https://www.sandiego.gov/treasurer/short-term-residential-oc...

Check the address against the zoning and read those regs to make sure you can do it at that location.

[Dan H.]

I have STRs and MTRs in San Diego and have had some since 1999. 

My STR performance is the lowest ever excluding the Great Recession and Covid lock down periods. I use a PM on our STRs and MTRs and my performance after PM fees is no better than if they were LTRs.

Downtown area, last I heard, still had STR permits available (unlike Mission Beach).

Good luck

[Keith Mintz]

Quote from @Dan H.:

I have STRs and MTRs in San Diego and have had some since 1999. 

My STR performance is the lowest ever excluding the Great Recession and Covid lock down periods. I use a PM on our STRs and MTRs and my performance after PM fees is no better than if they were LTRs.

Downtown area, last I heard, still had STR permits available (unlike Mission Beach).

Good luck

Oh wow what rate are you paying for STR PM fees?

[Dan H.]

Quote from @Keith Mintz:

Quote from @Dan H.:

I have STRs and MTRs in San Diego and have had some since 1999. 

My STR performance is the lowest ever excluding the Great Recession and Covid lock down periods. I use a PM on our STRs and MTRs and my performance after PM fees is no better than if they were LTRs.

Downtown area, last I heard, still had STR permits available (unlike Mission Beach).

Good luck

Oh wow what rate are you paying for STR PM fees?

 Going rate at beach areas is 25%.  The average occupancy is way down, the rates are a little down.  My units exceeded the reported average occupancy in each of their areas (by a modest amount).  Walk around Mission Beach right now.  I am rehabbing a mission beach unit.  The occupancy even over spring break was low compared to usual.