All Forum Posts by: Lucas Martinez

Quote from @Allen Maris:

@Lucas Martinez hi Lucas, what part is it legal? As far as I’ve read, unless it’s commercial or certain AG zoning or it’s part of your primary, it’s not legal. I live in unincorporated SBC and it’s illegal as well as the cities around me are too. 

You’re correct that it’s illegal in most inland areas with the exception of anything zoned above R4 (or RMH or whatever they’re calling it now). And even in those zones, it’s difficult to get a permit. However inside the Coastal Zone it is still unregulated. The city of SB just lost a multimillion dollar lawsuit a few months ago. They tried to ban STRs in the Coastal Zone in violation of the California Coastal Commission ruling, and the court threw out their ban. Similarly, the Coastal Commission blocked SB County’s attempt to ban STRs in the Coastal Zone. The Board of Supervisors has been trying to come up with some sort of regulations that will be approved by the Coastal Commission, but they have been working on it for years with no outcome. The city of Goleta has also adopted come common-sense STR laws that make it legal in Goleta city limits with the issuance of a permit. 

Quote from @Allen Maris:

Hi Mariah,
You won't find anything in LA or Santa Barbara for that price. Maybe east coast. I don't know the Hawaii market, I'll assume not since it seems so desirable, but possibly there are. You for sure should consider some debt. If you can find a place in a airbnb friendly area (SB is not legal, I don't know about LA) then having some debt that others pay for by renting it is the way to go.  

I agree with most of what @Allen Maris said, however short term rentals are legal in certain parts of Santa Barbara (I own 4 myself). But that being said, properties where STR can be legal are difficult to come by and are likely outside of your budget for now. I would consider beginning your investment journey in a slightly more accessible market, then looking back into SB/LA markets once you have a better feel for the process and a little more capital.

Originally posted by @Pavan Sandhu:

If local ordinance is more "laxed" then state mandates then why not go with the local program?

I don't think any local ordinances are more lax than the State mandated 4' setback

Got it. Thanks for the clarification!

Interesting, thanks for the reply @Matt Devincenzo. So if I'm understanding correctly, the LCP guidelines that existed prior to the adoption of the state law still remain in effect until the revised LCP guidelines are certified by the CCC?

I'm curious if anyone out there has experience building a new ADU in the Coastal Zone in California. I was under the impression that the state law of 4' maximum setback superseded any other jurisdiction, but I recently heard that in the Coastal Zone, this is not the case, and local coastal program (LCP) guidelines actually trump the state law when it comes to setbacks. Is this accurate?

@Thomas Pascarella

Your agent is just being lazy. Yes, it’s much harder on the agent to have to coordinate with tenants to schedule showings, but if they want to earn their commission they should be doing that. If they’re unwilling you should find another agent.

@Alexa Ferguson

I use Hospitable for channel management as well as cleaner scheduling/communication etc. They are also rolling out a direct booking platform soon which will be helpful.

I manage mine with only pricelabs and Hospitable, and I don’t feel the need for a 3rd platform.

@John Brodeur

Sounds like you got a great deal. But the point is that you don't need to find those kinds of insane deals to make this work. If that was the case it wouldn't be a viable strategy. You just need to find distressed properties you can rehab. BRRRR doesn't work at scale if you're looking at turnkey properties only.

Originally posted by @Ray Martinez:

Appraisal was just completed and the house came back $40k under valued.

If you were the seller what would be your next move?

If you were the buyer, what would be your suggestion?

Thanks,

Meaning the house came in at $40k under the contract price?

If I was the seller, I would try to hold firm on the price, but I would know that I just lost a ton of leverage. Even if I have backup offers, this is something I will need to disclose and it could screw up the financing on those deals, so I would really try to keep the deal I had together. 

If I was the buyer, I would definitely use this to try to lower the purchase price. By how much is totally dependent on your market and the competitiveness of the particular property. It's hard to offer advice in a vacuum without knowing the particulars about the market.