First rental project advice?

Question

Looking to pick up a ST rental & it’s my first foray into the space. What are your thoughts on selecting a market & property? Budget considerations I should plan for? I live in San Diego & initially thinking I’d like to stick to areas I know a little bit about and can visit within a few hours drive but maybe their are other areas where my returns would be better and property would be cheaper? Key considerations on doing this out of state? I’ve seen some AirDNA analytics on some of our nearby markets but I’d love to get your thoughts on what I should or shouldn’t do to help improve my returns and avoid pitfalls. Thank you!

Gabe Lemons · Answer

@Maxwell Ventura thanks! I was thinking Riviera section of MB if we did it in town, nice to know that seems solid, maybe Julian, PS/PD or JTree & maybe lake arrowhead/big bear/Angeles oaks area. I guess I need to hone in on which will be the target and get to looking.

Nancy Bachety · Answer

If your a few hours away or a few thousand miles away, there’s no difference. Identify your goals: do you want to use it primarily or maximize returns primarily? If you’re looking for optimal returns, make contact with good people, get good advice, pay good people well, like your cleaning team, be a fair good person, do more research on Airbnb’s listings and Zillow, etc. What are hosts offering, what are the rates, what’s the home value. You can use Airdna or you can do this yourself. If you need to be close to your property, consider being close to an airport instead.

Gabe Lemons · Answer

@Nancy Bachety thanks Nancy! Goal for this one is maximizing returns. Secondary goal is minimizing headaches. I appreciate your input!

Maxwell Ventura · Answer

@Gabe Lemons

STR in or around Mission Bay will most likely give you the best returns. I've also known other investors to do fairly well on Airbnb w/ 4-6 BR houses w/ pools all the way out in eastern metro. La Mesa.