Hey @Justin Kerstetter!
Congrats on you, and your wife's investment! Super excited to see how this turns out for you guys!
I haven't ever invested in the CA markets, so I am not familiar with any fees or rules you would have to worry about. But, first of all, I would double-check to make sure there aren't any rules or fees that you would have to pay to start your STR. If there is this may make it not even worth it to use the property as an STR as it may put you in a cash flow negative situation.
Here are a couple of questions that may help you in your current situation:
- Do the benefits of you using this property as an STR outweigh the benefits of an LTR?
- Is it worth your time to deal with managing the rental? (STRs are a much larger headache when it comes to managing)
- How do you know the property would be successful as an STR given the area it's in? (Figure out avg occupancy, revenue, amenities, etc)
Otherwise, it sounds like you guys are in a good spot, and you have your options open with this one. If you guys have any more questions don't hesitate to reach out!
Live Free,
Josh Messinger