All Forum Posts by: Joe Gettler

BP, I just went into contract to buy a home on 1/4 acre in a nice community in California. My plan is to use it as a short term rental when Im traveling for work which is most of the time. 

The city does allow STRs with a business license but I finally got the sellers disclosures from my agent and in the CC&Rs, it says you cannot have leases under 30 days. There are no HOA fees or any governing HOA so Im not sure how this is would be enforceable but Id rather not have to worry about it.

From doing a quick google search, it looks like the city/police couldn't enforce the CC&Rs and that if there is no HOA, my neighbors would be the ones to enforce the CC&Rs... Id rather not put my nice new neighbors in that position so would appreciate some insight! I would plan to talk to them prior to operating my STR and give them my contact info if theres ever a problem. Is this something I should avoid?

 Thanks!

@Rohin Dhar, that’s great to know. What kind of premium has your wife received for monthly leases in SF? Is it anywhere close to a 20% premium? I’m looking to rent to travel nurses on furnished finder bc my location lends itself so well to that group. I’ve noticed that most of the listings on that site in SF have average at best pics which i was shocked by (I’m sure this is not your wife). Pics go a long way with any listing so I wonder if that’s why most of those listings aren’t getting the premium. Would love to hear your and your wife’s experience and share notes.

@Melissa Bovee, thanks for your input! Totally agree with you and it looks like I need to get a business license to do the intermediate leasing occupancy (ILO) in SF. Leave it to San Fran, right? So that’s what I’ll do as you suggested.

@David S., you’re spot on and the condo conversion would be a good move but I think it might be too soon for that (I am a little more attached than my other properties since it’s my home). Maybe down the line!

@Brian Garlington, thanks for the input! The rental market has softened in SF and that's why the NOI estimate is less if I were to just market it for annual leases. I believe it'll come back so maybe monthly rental is the way to go for the time being.

BP family-

I bought a duplex with an attached ADU in a great part of San Francisco (lower pac heights, 94115) about a year ago. It is currently my primary residence and was a great house hack but I'm now considering moving out to live with my girlfriend nearby in her condo.

Now that people are starting to socialize again and this city is opening back up soon, I would imagine that many renters and visitors will be coming back to SF in the next year or two. With that said, San Francisco rental market it’s still a lot softer than it was before COVID.

My duplex has done pretty well during the pandemic despite the softened SF rental market since COVID. The duplex has done well because it has a great backyard/garden area and each unit has a private deck and W/D. Walking score of 95.

Pre COVID rental numbers:

Monthly gross rent $15,250

Cap rate 7.1%

Future rental numbers:

Estimated Monthly gross rent after current tenants move out $13,950

Cap rate 6.5%

Because monthly rent looks to be about 20-30% more if you rent by the month, I am considering renting out my duplex for monthly rentals on Airbnb/other sites and potentially for travel nurses (ideal because several hospitals are walking distance to my house). I don't have a garage or any parking so that could hurt the monthly rental appeal. Also, each of these two units is 3 bedrooms so it might be too big for traveling nurses/professionals.

Does anyone in San Francisco or in general have experience with monthly rentals? From what Ive read, it looks like I may have to get a business certificate to do this in SF but Im not sure what that entails or what else is involved?

Two of my units will be vacated in the next 2 months so this is a good time to consider this over my traditional 12 month leases again. 

Looking forward to hearing from you! Thanks in advance! 

I’m looking to do some direct mail to both find properties to hold myself and wholesale. I’ve been doing some digging on various sites like List Source and through BP here but was hoping for some insight on these questions. I’m planning to send out 1000 mailers/month. Thanks in advance!

1. Obviously the idea is finding more motivated property owners with direct mail. That said, it seems like in todays market most owners could just list their property on the MLS and get more and sell relatively quick. Are you finding this is the case? Every market is different but would love to hear what's working and what's not now.

2. What list broker company/website do you recommend?

3. Do all the list brokerage companies get their lists from the same place? Are some sites more current or better quality than others? If so, what makes some sites’ lists better than others?

4. For those that have been successful with direct mail, what do you usually pay for your lists? 

JG

Thank you. Kimberly G. Yes, I'm looking to buy/hold. Do you own any rental properties in Jacksonville? If so, what kind of CoC ROI do you typically get? Are there certain zips you would recommend? If so, can you suggest an agent in that zip code that has experience with buy/hold investors looking for cash flow? I'm not speculating on appreciation for this buy and am only interested in a SFH that will cash flow from the get go, which is why I'm looking in Jacksonville. From what I've read Tampa and Orlando have become a little too saturated with investors. Any insight/experience is much appreciated!

Hey everyone, I'm an out of state investor looking to buy a SFH (3-4 BR) for around $300k in 32081 (Nocatee), 32266 (Neptune Beach) or potentially Mayport (32233). Can any investors recommend a great agent (who knows cash flow rental properties well) and a good property manager in these areas? I'm investing from CA so I'll need a responsive and experienced team on the ground in these areas. Thanks!

*Bradley De comarmond