Big Bear Airbnb Short Term Rentals that Cash Flow?

Question

Hello all,

I am currently saving up for a STR and was looking at big bear as a possible location. I have seen some members say that it isnt possible to have a cash flow STR in Big Bear. And some that say they have multiple cabins that are successful. Does anyone care to share their experience in this market?

Aaron Pfeffer · Answer

@Christopher Webb

I'm looking at Big Bear inventory myself. The key seems to be manager or no manager. Looking at anywhere from 20-27% management fees + some other costs, so if you're doing it all yourself and offer the renters an attractive and affordable space, then you're going to see plenty of ADR and cash flow. Big Bear has also become a major destination for Nevada dwellers, so not just Californians any more, and the town is growing like crazy. Plus, when the next downturn hits (12-24 months from now), it's going to be an even better vacation destination. People still need to go away, even during a recession, and Big Bear will offer an inexpensive alternative most nights and weekends, with inexpensive family activities. Maybe not the skiing (Aspen just bought the mountains), but plenty of other things to do, especially over the summer. Pray no more future droughts! Also very curious to hear what others say about it up there...

Jon Crosby · Answer

@Christopher Webb Cash flow is easy if you pay all cash for a property. That doesn't mean it's a good investment though. :)

Just quickly looking at Airdna (this is the free view so accuracy could be wrong), but if there are really 3200+ rentals in a vacation area that small, my guess is competition is driving down daily rates and occupancy is highly competitive. I could image it being difficult to get high enough ADR and Occupancy to drive enough revenue to pay for a leveraged property in that case. I'm seeing the same thing in certain parts of Tahoe now as well.

Big Bear Airbnb Short Term Rentals that Cash Flow?

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