All Forum Posts by: Janelle K. Eagle

Hi @Brian Huh! This is one of the questions I field on a daily basis as a realtor/investor on the Central Coast. 

The good news: there will ALWAYS be high demand and the market is not currently saturates. 

The bad news: regulations fluctuate so purchasing a property that relies on STR to make the math work can be risky.

I live in Los Osos (very STR friendly) and just purchased an investment property in downtown SLO (not as STR friendly).

Again- my biggest recommendation is to always have a second exit strategy or cash flow opportunity. For instance, month to month rentals in the area are popular because of remote workers needing time away from the Bay Area or LA and also a healthy market of traveling nurses drawn to two nearby hospitals. 

I would be happy to walk you through the rules and regulations of each of the incorporated and unincorporated areas of SLO County. There are definitely options!

In California, you must indeed give 24 hour notice to inspect a property. That includes the grounds and any property / parcel space that is covered in the lease. If the land (or a portion thereof) is not included in the leasehold agreement, you would not need to give notice - but it would certainly be a kind courtesy and encourage positive sentiment from the tenant(s)! 

I would also add that notice should be given in WRITING so that any questions related to the conduct can be documented. CYA!!!!

My biggest hesitation is that while the current CC&R's for that condo complex may allow for STR, there are A LOT of communities throughout the country that are changing their laws and ordinances to make it more and more difficult to rent for under 30 days. It would worry me that my right to STR might get taken away after purchasing a condo. If the math makes it possible that you could still cash flow by renting out 30 day+ intervals, it might still be worth it. But if the math ONLY works if I can rent it out short term, I would pass.

Hey Jordy! Love to see your activity on the forums. 

Based on our conversation, my advice is to continue to save and then invest locally. Unless you plan to move in the near future, the biggest gift you can give yourself as a Cali resident is to OWN rather than RENT - especially if you can get the mortgage paid by other folks. The appreciation value is palpable, and the saved out of pocket expenses are a radical opportunity to put your savings into future properties. 

I personally suggest you prioritize house hacking and once you have it rented out and can get a sense of your monthly cash flow and potential savings, I would pool those funds into a down payment on a new property... and then another... and another. You could even consider HELOC'ing your California property once you have it to help you afford more out of state.

Always happy to hop on the phone if you want to talk through any of these strategies and LOVE the support the BP community is giving you as you consider your options!!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $1,150,000
Cash invested: $300,000

Built in 1890, this Old Victorian was converted into a duplex in the 70's by a talented architect who made some unique and extraordinary custom design choices (read Vaulted Sunlights) that make this property truly one of a kind.

What made you interested in investing in this type of deal?

This is a perfect BRRRR strategy as I was able to get an extremely reduced price and there is a LARGE value add opportunity with adding an ADU and upgrading the original structure.

How did you find this deal and how did you negotiate it?

Purchased off the MLS! This property had my heart from the moment I saw the listing, but it took A LOT of work and calculations (and LUCK!!!) to get it down to a price that would make the numbers work.

How did you finance this deal?

Conventional Loan - did 15% down with a $25K seller credit at closing which allowed me to reduce my down payment.

How did you add value to the deal?

I will be upgrading the existing duplex and then converting an old carriage house into a permitted ADU / Tiny Home. It will take a huge amount of work to upgrade the property which has not been properly maintained, so we'll be doing a lot of infrastructure rehab including adding HVAC/AC, upgrading the wiring, and bringing the old floors back to life.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I represented myself in the deal which was key to getting my offer selected - I could offer the seller reduced commission!

This may be my favorite post in the forums of late. I absolutely LOVE Asana and use it for many many facets of my life and business. I did indeed use it for a flip this past year, adding my contractor to my account. She ended up liking it so much she now uses it on ALL of her jobs! 

Please keep me in the loop if you end up developing something that you like. 

Light fixtures range in price, but there are Now many options that are affordable and immediately modernize a space and potentially become more “efficient” as well. Swap out or upgrade lighting in some of the “wow” spaces!

Super helpful and thorough! Thanks so much for sharing all your knowledge around this!!

Placer Title in Fresno is right near you and really great. Info below:

Dana Bustamante

Placer Title