All Forum Posts by: Michael Conway

Yes, i believe this is a game changer.  Please let me know!

Bumping this post

What are you thoughts??  Is it a good time to jump into the short term / vacation rental market?  I'm thinking about converting my rental to an AirBNB in the coming months.  AirDNA data looks very promising and my neighborhood (North Park) is a highly sought after destination for vacationers.

Legislation could change at any point, but i'm thinking I can exit STR for a furnished monthly rental worst case scenario... For now its looking like I could double by income going this route, I would love to hear feedback on this topic!

A deal is a deal, if the numbers work pull the trigger!

We recently bought a duplex that we are owner occupying. We utilized an FHA loan to buy this property and as part of the loan process FHA/HUD had us sign form HUD-92561, Hotel/Transient Use of Property. Our initial goal for the second unit was to convert this to a short term vacation rental, but now we are questioning this option.

Is anyone familiar with this form, any possible exceptions, and/or legal implications? How is this enforced by FHA/HUD? We are weighing out options and hope to better understand if anyone has every ran into an issue with this..

Thanks,

Michael Conway

Update: We closed the deal! We were also able to get the seller to kick back around 10K in credits at closing, which allowed us to remodel the upstairs unit. Construction is in full swing. We are presenting the downstairs tenant a buyout option this weekend to break their lease early, in the hope that we can soon turn it into a STR. Wish us luck!

Everyone has different opinions on STR... The area my property is located is in a higher density MFR section of the city. I feel that the largest concern with STR is when homes in strong single family neighborhoods are being converted. People don't want their neighborhoods over run with partying tourists...

The color map I feel is misleading...  I would rather live in a "red" area where there were 30 crimes for jaywalking/drunken peeing, than the "green/yellow" area where there is a violent crime every month.  Any urban area is going to show up on Trulia as high crime compared to suburban areas where nothing is happening, its all relative.  Pretty much all of downtown san diego is red... that doesn't mean it's not all safe.  I lived in Talmadge, very nice neighborhood, but 2 blocks away was a very high crime area.  As an outsider, without knowing this area, I would shy away based on the Trulia map.  Just my 2 cents.

Keep in mind that "short term" regulations only affect rental periods of less than 30 days.  There is plenty of demand in San Diego for 30 day furnished rentals with a high volume of military, traveling nurses, etc.  30 day furnished rentals are still doing VERY well, averaging 25% - 50% more rent/month than a long term tenant lease.

I agree, have a back-up plan.  Things can always change.

FYI, I wouldn't trust Trulia's crime maps.