So Cal - Considering getting into STR, is it really worth it?

[Richard Chover]

We are considering getting into STR with one of our properties in the Murrieta/Temecula area of southern California.  Our experience is with LTRs so we are a little hesitant to do a STR given the uncertainty of the monthly revenue.  

The property is a 5 bedroom that should sleep 8-10, with a pool, kids playset, and pickleball/basketball court. Our research says that we should be able to rent on a STR basis for about $350-450 per night. Without boring you with our analysis, at a 50% occupancy rate it would net us about the same as renting it out long-term.

Every time I have analyzed converting one of our LTR into a STR the numbers have always looked better as a LTR. Have any of you found the same to be true, or are the STRs incredibly profitable and I am just not understanding the economics of STRs?