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How’s your arbitrage experience?
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.
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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.
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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
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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?
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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.