All Forum Posts by: Isaiah Ortiz-Hoyle

Adding on to what @Dan H. and @Doug H. said (both of which I concur with)...

There's a big difference here between single family properties and multifamily properties.  

A multifamily property (and, technically a single family property that is a duplex, but ignore that bizarre technicality for a moment) has legal separate dwelling units (DUs) for which the original builder paid DIF and other fees to create. Every one of those units can potentially be an STR under current city policy.

This is different from single family properties. In this case, only the primary DU (the original home) can be legally offered as an STR.

Basically, if someone didn't pay DIF fees to create a legal DU out of the unit, you can't STR under current policy. Both types of properties, however, can have ADU units (technically called "companion units") added to them. Those ADU units cannot be STR'd.

All this is a bit wonky, but it answers your main question: it's possible to take a multifamily property and legally STR all the units. It's also possible to illegally do it. And, to underscore what was said earlier, it's VERY unlikely to be able to legally do it starting sometime next year (unless you make other changes so it's legally treated as lodging or SRO use).

@Isaiah Ortiz-Hoyle I'd highly recommend you check out the monthly meet up "Beers & Deals' in Little Italy.  I'm not an expert in ADUs (only have midwest small multi unit rentals right now) but I did meet a lot of people at that meet up who had invested in them locally and I'd imagine you could make some valuable connections there. It's ran by the hosts of "The Multifamily Takeoff" podcast.  

ADUs and JADUs are not for STRs.  They can be used for LTRs, but the JADU does require the owner to occupy the primary unit to be able to rent the JADU as an LTR.  This Owner Occupied restriction does not apply to ADUs.  

@Doug H. adequately described the potential issue with STRs in the city of San Diego. If the ordinance goes into affect, it is unlikely you can create a new STR in the city of San Diego. The ordinance was originally scheduled to go into affect in July 2022.

My view is STR in most areas of San Diego are at high risk of being impacted by anti STR regulations.

We currently have 3 STRs in the city of San Diego (2 units at mission Beach and one unit in Pt Loma). The wife and I will be limited to one each if the regulation goes into affect. the 2 mission beach units have been STR for over 20 years. We will convert one unit (the Pt Loma unit) to 30+ day furnished rental when required.

Good luck

@Isaiah Ortiz-Hoyle

The city of San Diego, has actually passed code this year which would decimate anyone who has multiple STRs in the city, via a “1 per owner” condition, limited number of permits insufficient to cover the existing STRs, a lottery system, etc.

However, the city has paused to see if the California Coastal Commission will veto that in the coastal zone, which they have before.

This is the second time in four years where the city has passed a code designed to drastically curtail STRs. Eventually, they are going to come up with one that sticks.

I would at least wait until the Coastal Commission puts forth their will on the matter, before you invested any energy into San Diego STRs.

Hi @Isaiah Ortiz-Hoyle, the document you are referring to appears to be outdated. Here is the link to the most recent handout SD County revised on 9/20/2021.
https://www.sandiegocounty.gov...

The last point in the JADU section on the 3rd page addresses your question: "The JADU may be rented, but not for less than 30 days, and is not intended for sale separate from the primary residence. The owner is required to live in one of the two units."

If the property has an ADU, JADU, and SFD then the owner must live in any one of the units as their primary residence.

Go to your personal dashboard.  In the upper right on mine is a list of local events.

I would guess between BP and Meetup.com that there are 4 to 6 RE Meetups per week that I am aware of.  This week:

Monday: BP: REI social. I have gone to this one quite a few time. No presentation, a lot of newbies and want to be OOS investors. Most have not achieved much success. Very casual. It is nice for newbies meeting other newbies. It is not great as a place to learn from successful RE investors.

Wednesday: Meetup: Apartment Investor Mastery (Multifamily networking and education), Meetup: Passive cash flow (How to invest in 2020)

Thursday: Meetup: Commercial REI Breakfast (Using virtual assistants to build a stream of off-market deals). I have interest in this subject but 7 AM plus my wife has surgery that afternoon. I still may attempt to go to this one.

Saturday: Meetup: San Diego RE Profit Building (where are the profit centers 2020)

There are a lot of Meetup options for this is just the ones I know of this week.  Two of my favorite are not this week.

Good luck