Sonoma, CA & Wine Country Vacation Rental Investors?

Question

Hello BP!

I am looking to connect with investors in Wine Country! Considering purchasing a property up there to use as a weekend getaway and short-term vacation rental.

Anybody active in Healdsburg, Sonoma, Napa, Kenwood, Geyserville, Calistoga? Developers, flippers, wholesalers? Shoot me a message if you are; I'd love to chat!

Chelsie Runnings · Answer

Hey everyone, the Sonoma County Board of Supervisors approved an overhaul of vacation rental regulations.

Here's some important information for anyone thinking of making a STR purchase in Sonoma County:

Sonoma County Short Term Rental Updates and prohibited neighborhoods as of August 2

John D. · Answer

I too almost bought a couple of places in Guerneville, but they sold a bit above the price that would have been required for me to hit my target numbers.  I've looked through various other spots in the "Healdsburg, Sonoma, Napa, Kenwood, Geyserville, Calistoga" areas and couldn't find anything that made sense for me, numbers-wise.  I've found much better vacation rentals numbers in other locations.

Ryan H · Answer

Hey Jake,

I moved our family up to the Town of Sonoma a couple of years ago and was able to score a REO and renovate it for $100k. Full gut, abatement, patched holes in the subfloor, added a sun room, rearranged the kitchens, etc. and ended up with over $100k in equity above what we put into it when it was all said and done.  We selectively yellow lettered up here too and got some response but no deals.

I too was looking for a vacation rental in Guerneville and got beat out on my offers. You have to be careful up there because some places are on cesspools and are basically and able to be renovated or developed due to county regulations.

Napa County is a no-vacation rental county unless you had one already before they passed the ordinance.  Lots of people still do it but they have to be under the radar.

If you are swimming in cash, go for it.  Personally, I found I could not make the numbers work compared to other cash flowing opportunities. Plus you have the tax issues if you stay at your own vacation rental. If Uncle Sam catches you.... say good bye to your write-offs and depreciation.  It is then considered a second home so you can not write it off as a rental expense.

I am not a tax accountant so do your own homework.

Best of luck and let me know if you land something... We are always looking for cool retreats to visit.

Rachel Hadass · Answer

Hi @Chelsie Runnings, I'm also looking into purchasing an STR in the Sonoma County area. Would love to chat with you and get insight into the market. Please feel free to message me. Thanks!

-Rachel

Calvin L. · Answer

Hi Chelsie, do you have any listings that are not in the prohibited neighborhoods? Hard to tell whether the house is in the prohibited zone when looking at redfins.

Claire Rosenberg · Answer

Hi @Jake Van Vorhis really exciting! I am on the co-hosting side and happy to answer any questions about managing a successful rental!

Rohin Dhar · Answer

We have a property in Sonoma, CA (technically in the incorporated part of the country, though 1.5 miles from the town square) that we bought in 2014. We have a short term rental permit, though they no longer give them out in that particular spot. Still possible to find in certain spots in wine country, though challenging (plus getting homeowners insurance is hard b/c of the fire risk in rural areas). Overall our place has performed well, but we got in at a good price.

Guerneville pricing has blown up during covid b/c the properties have a lower price, but i'm not sure how well they'll rent out in the offseason post covid.

Kiona Davies · Answer

@Annette Margolis hello! Curious if you pulled the trigger on buying a vacation rental in the area and have any insight to share? I’m looking to invest in a vacation rental, though as you can imagine, having a harder time finding SFH where the numbers make sense due to significant appreciation/inflation in the market this past year.

Annette Margolis · Answer

@Jake Van Vorhis Hello! Did you end up purchasing a property in Guerneville / Sonoma County? Why or why not? Would love to hear how it worked out for you as I am looking to do something similiar in a similiar area now. Thanks!

Sonoma, CA & Wine Country Vacation Rental Investors?

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